Zillow reports the percentage of homeowners with negative equity (owe more on their homes than the home is worth) fell to 27.5% as of the end of 2012 vs. 31.1% at the end of the prior year (nearly 12% better).
St. Louis Fed President Bullard said the FOMC will keep monetary policies easy and rates low “for a long time.”
JPMorgan (Chase) said it plans to fire 19,000 people or about 7% of total employees, with 4,000 coming this year and the rest coming through 2014 (mostly in mortgages and community banking).
A recent study that finds only 18% expect business leaders to tell the truth and only 13% expect it from their political leaders.
The top 10 banks control 54% of the deposits; banks that operate in multiple states control 79% of deposits and banks with assets less than $1B control only 13% of deposits.
Housing foreclosures fell 7% in Jan vs. Dec. and were down 28% YOY.
The FDIC reported yesterday that the banking industry posted a 19% improvement in full year earnings in 2012 vs. 2011, the second highest level ever. Performance was driven primarily by a 25% reduction in loan loss provisions and 8% higher noninterest income (174% gain on loan sales, 94% increase in servicing income and 52% reduction in losses on foreclosed property sales). Loans grew 1.7%, as C&I increased 3.7%, credit cards grew 4.2% and real estate climbed 1.4%. Meanwhile, home equity and real estate construction each declined by 2.2% and 3.1%, respectively. NIM declined 18bp to 3.42% over the year and is down 34bp over the past 2Ys. The total number of institutions fell to 7,083.