US banks are facing another wave of bad news that could derail their recovery and destabilize the global economy, Wall Street Journal reports.
The newspaper cites a string of recent developments that bode poorly for the financial sector and battered bank stocks on Friday: a lawsuit by federal regulators demanding compensation from 17 firms over soured mortgage deals; disappointing jobs data that could signal another recession, and the Federal Reserve's increased scrutiny of Bank of America's capitalization.
"The stresses in the U.S. aren't limited to big banks," the newspaper writes. "Institutions of all sizes are being hammered by a new erosion in confidence that comes just three years after the industry's near-collapse led to a large government bailout."
The Wall Street Journal points out that banks are suffering under sluggish loan demand, and struggling to cover expenses resulting from new regulations and from lawsuits related to the mortgage crisis.
European bank woes remind experts of Lehman days; bankers worried about parallels. [Bloomberg]
Goldman Sachs launches rebranding campaign with cheery new website. [DealBook]
US regulators want to settle with banks over mortgage lawsuits, freeing firms from legal liability. [Financial Times]
Deutsche Bank says it may need more layoffs if weak market trends persist. [Wall Street Journal]
Basel Committee members want to ease liquidity coverage requirements to help banks weather crises: report. [Bloomberg]
Australia's Macquarie may buy $6 billion aircraft leasing unit from Royal Bank of Scotland. [MarketWatch]
Bank of New York Mellon's Robert Kelly gets $2 million severance. [DealBook]
Allianz plans to restructure asset management to give PIMCO more independence. [Bloomberg]
New wealth management firm hires sports star sales team to target professional athletes. [On Wall Street]
Cantor Fitzgerald's Lutnick builds firm into powerhouse after 9/11 attacks. [New York Times]
Switzerland private bankers seek acquisitions to boost profits as tax laws tighten. [Bloomberg]