Winding down Fannie and Freddie would be the biggest change to the financial system in half a century, and some banks are better positioned to succeed.
The performance overhang attributable to the bank's crisis-era missteps is fading, writes Morningstar’s Jim Sinegal.
Wells Fargo’s results underscore how the firm’s low-cost deposit-base growth remains its key source of competitive advantage, writes Morningstar’s Jim Sinegal.
The narrow-moat bank benefited from scale advantages in the first quarter, but macroeconomic and regulatory hurdles could slow the firm in the near term.
The firm continued its progress on the expense front in the fourth quarter, but further improvement will be harder and regulatory woes will persist, writes Morningstar’s Jim Sinegal.
Factors outside management's control will determine the extent of earnings improvements over the medium term, writes Morningstar’s Jim Sinegal.
Citigroup's newly announced divestitures are a sound strategy, but the global bank is not experiencing exceptional growth rates due to refocusing.
Low-cost core deposits--the key source of Wells Fargo's narrow moat--grew during the third quarter, but low rates and regulatory costs will be headwinds.
The bank will find it harder to cut expenses as revenue begins to rebound and legal expenses become a cost of doing business.
The new Apple Pay is unlikely to disrupt payment networks or credit card issuers--and should even expand network volume, writes Morningstar’s Jim Sinegal.
Outperformance is increasingly unlikely.
A large settlement with the Department of Justice resolves much of the bank’s crisis-era misdeeds, but it’s difficult to foresee a day when B of A and its peers are free of improprieties and the associated costs, says Morningstar’s Jim Sinegal.
Regulators’ concern over ‘living will’ restructuring plans reinforces our high uncertainty ratings and lack of enthusiasm for Bank of America, Citigroup, and JPMorgan Chase shares, says Morningstar’s Jim Sinegal.
The wide-moat firm continued to keep a tight lid on expenses, and it is making the right moves in the digital world, says Morningstar's Jim Sinegal.
With each massive settlement, B of A is closer to putting its troubled past behind it, but the environment remains tough for large banks, says Morningstar's Jim Sinegal.
The bank’s mortgage business and the low-interest-rate environment continue to take their toll on earnings.
We expect Wells Fargo to continue recording exceptional performance compared with peers, and its shares could look attractive to some investors.
JPMorgan's first-quarter results highlight the bank's challenges to increase revenue and reinforce our neutral view of the shares at today's prices.
Citigroup reports full-year 2013 earnings below our expectations, but our fair value estimate is intact.
Vulnerability is growing at a handful of banks.
Morningstar's Jim Sinegal says the escalating costs of past misdeeds at J.P. Morgan and its predecessors have forced Morningstar analysts to reconsider their position on the bank's management team.
Increasingly bullish sentiment means investors must pick their spots carefully.
Volatility could return to the financial sector in the second half of 2013.
The bank reported record income, but it's also encountering headwinds regarding expenses and its mortgage business, according to Morningstar's Jim Sinegal.
Although the bank posted solid first-quarter results, macroeconomic factors largely offset improvements in J.P. Morgan's core business, says Morningstar's Jim Sinegal.
The financial sector is fully valued despite global uncertainties.
While it's encouraging to see the bank making progress with respect to its legacy issues, Morningstar's Jim Sinegal remains skeptical that it is over the hump.
The banking giant is positioning itself to grow earnings at a modest pace and is reorganizing its business around client needs rather than product lines, says Morningstar's Jim Sinegal.
The rate at which Wells Fargo is expanding both sides of its balance sheet in the current environment is about as good as investors can expect for a bank of its size, says Morningstar's Jim Sinegal.
A further rally in financial stocks is unlikely without continued economic improvement.
We think a sizable return of capital could occur by mid-2013.
The bank reported solid third-quarter results, but it will take years before loan growth really begins to ramp up again, says Morningstar's Jim Sinegal.
Morningstar's Jim Sinegal thinks the bank will be capable of raising its dividend by mid-2013 and hopes that a larger repurchase program might also be forthcoming.
A summer rally in financial stocks has lowered the margin of safety for investors in this volatile sector.
The banking giant managed to survive the London Whale fiasco and still performed relatively well in a poor operating environment, says Morningstar's Jim Sinegal.
Investors should continue to pick their spots carefully in the financial-services space.
The easy money has been made in financial-services stocks.
The bank remained defensive during the quarter but has its work cut out for it going forward, according to Morningstar's Jim Sinegal.
The banking giant remained on the offense in a tough quarter, says Morningstar's Jim Sinegal.
Europe's troubles are casting a dark cloud on the financial sector, but several catalysts for higher stock prices could be on the horizon.
Citigroup's presence in developing markets will provide a growth tailwind over the long run, but we caution that volatility in these results is to be expected.
The low interest rate environment appears likely to pressure results for the foreseeable future.
We are leaving our fair value estimate unchanged while carefully watching loan and revenue growth in a potentially extended period of economic malaise.
We prefer companies with little direct exposure to questionable sovereigns.