At Least One Big Bank CEO Will Be in the Hot Seat This Week

In the wake of mixed Q1 results, banking incumbents should have a relatively calm week, with Bank of America, JPMorgan Chase, and Wells Fargo getting on with business as usual. Meanwhile, Citigroup holds its AGM, which might prove contentious for its current management.

Apr 21, 2014 at 12:00PM

So Q1 results season is over for the big banks and many of their smaller peers, meaning those lenders can get on with their lives. The quarter was a mixed one for the big four, with Citigroup (NYSE:C) rising above diminished expectations and sector champ Wells Fargo (NYSE:WFC) notching the latest in a series of all-time-high quarterly net profits. On the sad-face side, Bank of America (NYSE:BAC) swung to a loss and  JPMorgan Chase (NYSE:JPM) fell short of expectations.

This week, happenings in the industry will probably be overshadowed by a bunch of famous stock market stars weighing in with their latest quarterly results (General Motors, Apple, and Facebook, to name but three). 

Nevertheless, there will be a few events for financial sector participants and observers to keep an eye on. Tomorrow, Citigroup holds its annual stockholders' meeting and we shouldn't be surprised to witness some dissent in the ranks. CEO Michael Corbat remains on the hot seat, particularly since the AGM comes less than a month after Citigroup's capital allocation plans were dashed by the Federal Reserve in its annual Comprehensive Capital Analysis and Review.

Citi's Q1 results were encouraging and the bank isn't doing badly as some disgruntled observers have suggested, but that CCAR result still stings and the company's stock price could be higher. Out of the big four, Citigroup's shares have been the clear laggard over the past five years, and you can bet its investors are well aware of this.

C Chart

The banks that have sizable mortgage lending operations -- yes that particularly applies to you, Wells Fargo and JPMorgan Chase -- should see some impact if this week's figures for existing and new single-family-home sales in March are far from the current consensus. At the moment, the average estimate for the former is 4.55 million (down from the February number of 4.60 million) and for the latter it's 450,000 (440,000 the previous month).

Few seem to be anticipating a big month-over-month change up or down, so any more significant movement is liable to rock the shares of those banks. The March existing home sales data is to be released tomorrow morning, with the new home number coming in on Wednesday.

All in all, now that most financial majors have reported their latest earnings, the coming days shouldn't be as eventful as the preceding week. The banking sector has had its turn in the sun recently; it's time for it to step back a bit from the light just now. 

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4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

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The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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