Financial Sector Update: Morgan Stanley (NYSE:MS); Wells Fargo & Co. (NYSE:WFC) And KeyCorp (NYSE:KEY)

Boston, MA, 02/26/2014  (usastockreport) – According to the reports that surfaced on Tuesday, Morgan Stanley (NYSE:MS) is said to have reached a $275 million settlement with the U.S. Securities and Exchange Commission, which will allow the bank to finally close its long pending legal case that surrounded it since the financial crisis. In an annual filing, the bank stated that it has agreed to pay in principal to the SEC and will not be required to admit any wrongdoing. SEC initiated its probe against Morgan Stanley’s role as an underwriter and sponsor, after the bank issued subprime mortgage bonds which recorded huge losses during the financial crisis. As of now the SEC agreement is a proposal and is required to get consent from the commission as well. But, Morgan Stanley (NYSE:MS) is still left with a bunch of litigations relating to its mortgage bonds and derivatives.

On Tuesday, Wells Fargo & Co. (NYSE:WFC) announced the appointment of its chief data officer, A. Charle Thomas. The bank said that Thomas joins from USAA, where he was entrusted with the responsibility of Chief data and analytics officer. On Tueday, the bank also decided to ease the norms for getting the Federal Housing Loans. Its decision has been supported and praised by the executives of both Realogy and The Home Depot Inc. (NYSE:HD). The bank has lowered the FICO threshold from 642 to 600 now.

According to Stephanie Link reports, KeyCorp (NYSE:KEY) has drawn attention of analysts at BAML and Deutsche bank post analyst meetings. According to them KepCorp’s expense cut should give it an operating leverage. Moreover, higher rates should also be beneficial for the financial company. Last week, the financial data company, Markit projected that the dividends at Banks are likely to grow at an average rate of 49%, which is subject to Fed’s stress test. According to Markit, KeyCorp (NYSE:KEY) may boost its dividends by 27% this year.

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