SOURCE: Paragon Financial Limited

Paragon Financial Limited

May 01, 2012 08:20 ET

New Rules and Limits Proposed by the Federal Reserve Could Have a Negative Impact on the Big Banks

The Paragon Report Provides Stock Research on Citigroup and Bank of America

NEW YORK, NY--(Marketwire - May 1, 2012) - Banking stocks have continued to impress investors in 2012. The SPDR KBW Bank ETF (KBE) is up nearly 19 percent year-to-date. But new rules and limits proposed by the Federal Reserve look to have a negative impact on the Banking Industry. The Paragon Report examines investing opportunities in the Banking Industry and provides equity research on Citigroup Inc. (NYSE: C) and Bank of America Corp. (NYSE: BAC).

Access to full reports can be found at:

Last December the Federal Reserve had proposed tougher standards and supervision for the "Big Banks" whose failure would jeopardize the U.S. economy. The central bank set a limit of 10 percent for credit risk between a company deemed "too big to fail" and their counterparty, which would come into effect if each party had a total of $500 billion in assets or more. "The Federal Reserve has provided no basis to determine that imposing the dramatically lower and arbitrary 10 percent credit limit on certain major covered companies would even help mitigate risks to the U.S. financial stability, much less be necessary," according to a letter sent to the central bank by five banking trade groups obtained by Bloomberg News.

Paragon Report releases regular market updates on the Banking Industry 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 and get exclusive access to our numerous stock reports and industry newsletters.

Citigroup's Vikram Pandit and other top directors have been sued by a shareholder who accuses them of giving top executives outrageous compensation. The complaint filed last Thursday stated that directors violated their duties by awarding more than $54 million in compensation to directors in 2011 despite the bank's performance not justifying the payments. Shareholders at Citigroup's recent annual meeting voted to reject Pandit's pay package.

Bank of America, the second-largest U.S., is currently being sued by Watertown Savings Bank over $130 million in investments. Watertown is seeking damages associated with their investment in the AMF Ultra Short Fund and the AMF Ultra Short Mortgage Funds, according to documents filed with the New York State Supreme Court. The bank invested approximately $130 million in funds from 2004.

Paragon 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 Paragon Report has not been compensated by any of the above-mentioned companies. We act as independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at: