SOURCE: The Bedford Report

The Bedford Report

September 05, 2011 08:16 ET

Legal Difficulties Weigh on Major Banks' Recovery

The Bedford Report Provides Equity Research on Citigroup & Wells Fargo

NEW YORK, NY--(Marketwire - Sep 5, 2011) - The number of expensive lawsuits against US Major Banks has continued to grow this summer. While banks have begun posting improved revenues in recent quarters, lawsuits have been shrinking the sector's bottom line. The Bedford Report examines the outlook for companies in the Financial Sector and provides equity research on Citigroup, Inc. (NYSE: C) and Wells Fargo & Co. (NYSE: WFC). Access to the full company reports can be found at:

www.bedfordreport.com/C

www.bedfordreport.com/WFC

Last Friday a US regulator sued 17 major banks over losses on more than $41 billion in subprime mortgage bonds, which could hamper a broader government mortgage settlement with banks.

The FHFA has been demanding refunds from banks for loans sold to Fannie Mae and Freddie Mac that were based on false or missing information about borrowers and properties. The two government-backed mortgage finance firms had to be rescued by taxpayers as defaults on home loans soared toward record levels.

The Bedford Report releases market research on the Financial Sector so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at www.bedfordreport.com and get exclusive access to our numerous analyst reports and industry newsletters.

Citigroup was one of the 17 banks named in the FHFA lawsuit. In the filings, the agency says that Fannie and Freddie bought $3.5 billion in securities from Citigroup.

While Wells Fargo was not named in the FHFA filing, the bank remains tied up in other legal cases. Currently Wells Fargo, the city of Memphis and Shelby County have begun talks in hopes of resolving a lawsuit the city and county filed against the company's local lending practices.

The Bedford Report provides Market Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. The Bedford Report has not been compensated by any of the above-mentioned companies. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at: http://www.bedfordreport.com/disclaimer.

Contact Information