Market cap declines to SR 1.43 trillion

Updated 26 January 2013
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Market cap declines to SR 1.43 trillion

Despite closing higher for three days during the week, Saudi Arabia's benchmark stock index delivered negative end results last week. The index sustained its downward trend for the second consecutive week, trimming back the 7,000-mark to close lower at 6,998.34 points, down roughly 38 points or 0.54 percent from its previous weekend close at 7,036.33 points. It performed within a trading range of 106 points last week.
The market capitalization of Saudi stock exchange reached to SR 1.43 trillion, decreasing by 0.92 percent from the previous week's value.
Among market cap indices only Micro cap was able to move upward for the week.
Sectoral performance was mixed during the week, as the losses made by the Transport (-2.8 percent) and Petrochemical Industries (-1.41 percent) being offset by rise in Media and Publishing (+3.69 percent) and Telecom (+1.31 percent).
Weekly market breadth was unfavorable, with 57 stocks witnessing advances and 88 others marking a decline. Furthermore, upside-downside volume ratio of 0.6:1 remained negative.
Saudi Industrial Export made the biggest jump among all Saudi equities, topping the weekly gainer chart with 25.76 percent positive change, closing at SR 113.5. Saudi Arabian Insurance and Amanah Coop. Insurance followed it, advancing 8.40 percent and 7.61 percent respectively.
On the other hand, Saudi Integrated Telecommunication Co. suffered worst of all equities, showing a reduction of SR 4.70 or 20.98 percent.
Seven out of top 10 heavy weights went down for the week, with Saudi Telecom Co. dipping by 5.54 percent, Samba Financial Group 3.38 percent and Kingdom Holding 1.50 percent. On the positive side, only Etihad Etisalat Co. (Mobily) was able to manage for a weekly gain, surging by 5.28 percent to close at SR 74.75.
Market activity remained low last week; specifically 906.2 million shares worth SR 26.8 billion were liquidated at Tadawul. This turnover reflects a weekly decrease of 8.2 percent on volume basis and five percent in terms of value.
Most of the major benchmark indices at GCC stock markets ended the week in green.
The benchmark GulfBase GCC General Index closed the week slightly higher at 4,050.06 points level, adding merely 2.49 points or 0.06 percent for the entire week.


Wells Fargo to pay $1B for mortgage, auto lending abuses

Updated 20 April 2018
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Wells Fargo to pay $1B for mortgage, auto lending abuses

  • Fine the latest in a series of setbacks for US bank
  • Federal Reserve in February prohibited lender from growing assets until governance issues addressed

Wells Fargo will pay $1 billion to federal regulators to settle charges tied to its mortgage and auto lending business, the latest chapter in years-long, wide-ranging scandal at the banking giant. However, it appears that none of the $1 billion will go directly to the victims of Wells Fargo’s abuses.
In a settlement announced Friday, Wells will pay $500 million to the Office of the Comptroller of the Currency, its main national bank regulator, as well as a net $500 million to the Consumer Financial Protection Bureau.
The action by the CFPB is notable because it is the first penalty imposed by the bureau under Mick Mulvaney, who President Trump appointed to take over the consumer watchdog agency in late November. The $500 million is also the largest penalty imposed by the CFPB in its history, the previous being a $100 million penalty also against Wells Fargo, and matches the largest fine ever handed out by the Comptroller of the Currency, which fined HSBC $500 million in 2012.
The fine against Wells Fargo had been expected. The company disclosed last week that it was in discussions with federal authorities over a possible settlement related to its mortgage and auto lending businesses, and that the fine could be as much as $1 billion.
The settlement also contains other requirements that would restrict Wells Fargo’s business. The bank will need to come with a risk management plan to be approved by bank regulators, and get approval from bank regulators before hiring senior employees.
“While we have more work to do, these orders affirm that we share the same priorities with our regulators and that we are committed to working with them as we deliver our commitments with focus, accountability, and transparency,” said Wells Fargo Chief Executive Tim Sloan in a statement.
The $500 million paid to the Comptroller of the Currency will be paid directly to the US Treasury, according to the order. The $500 million paid to the CFPB will go into the CFPB’s civil penalties fund, which is used to help consumers who might have been impacted in other cases. But zero dollars of either penalty is going directly to Wells Fargo’s victims.
The bank has already been reimbursing customers in its auto and mortgage businesses for these abuses. Wells Fargo has been refunding auto loan customers since July and been mailing refund checks to impacted mortgage customers since December.
While banks have benefited from looser regulations and lower taxes under President Trump, Wells Fargo has been called out specifically by Trump as a bank that needed to be punished for its bad behavior.
“Fines and penalties against Wells Fargo Bank for their bad acts against their customers and others will not be dropped, as has incorrectly been reported, but will be pursued and, if anything, substantially increased. I will cut Regs but make penalties severe when caught cheating!,” Trump wrote on Twitter back in December.
The abuses being addressed Friday are not tied directly to Wells Fargo’s well-known sales practices scandal, where the bank admitted its employees opened as much as 3.5 million bank and credit card accounts without getting customers’ authorization. But they do involve significant parts of the bank’s businesses: auto lending and mortgages.
Last summer Wells Fargo admitted that hundreds of thousands of its auto loan customers had been sold auto insurance that they did not want or need. In thousands of cases, customers who could not afford the combined auto loan and extra insurance payment fell behind on their payments and had their cars repossessed.
In a separate case, Wells Fargo also admitted that thousands of customers had to pay unnecessary fees in order to lock in their interest rates on their home mortgages. Wells Fargo is the nation’s largest mortgage lender.
Wells Fargo has been under intense scrutiny by federal regulators for several months. The Federal Reserve took a historic action earlier this year by mandating that Wells Fargo could not grow larger than the $1.95 trillion in assets that it currency held and required the bank to replace several directors on its board. The Federal Reserve cited “widespread abuses” as its reason for taking such an action.
This settlement does not involve Wells Fargo’s wealth management business, which is reportedly under investigation for improprieties similar to those that impacted its consumer bank. Nor does this involve an investigation into the bank’s currency trading business.
Consumer advocates have been critical of the Trump administration’s record since it took over the CFPB late last year. However, advocates were pleased to see Wells Fargo held to account.
“Today’s billion dollar fine is an important development and a fitting penalty given the severity of Wells Fargo’s fraudulent and abusive practices,” said Pamela Banks, senior policy counsel for Consumers Union.