Fifth Third Bancorp (FITB - option chain) stock is trading lower today after the company disclosed in a regulatory filing that it has been subpoenaed by the Securities and Exchange Commission regarding commercial-loan practices. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on FITB.

This morning, FITB opened at $13.97. So far today the stock has hit a high of $14.15 and a low of $13.67. As of 11:50, FITB is trading at $14.02, down $0.58 (-4.0%). The chart for FITB looks bullish and S&P gives FITB a positive 4 STARS (out of 5) buy ranking.

Continue reading Fifth Third Bancorp Subpoenaed by SEC

Fifth Third Bancorp Subpoenaed by SEC originally appeared on BloggingStocks on Tue, 01 Mar 2011 13:00:00 EST. Please see our terms for use of feeds.

The earnings season ramps up this week. Analysts polled by Thomson Reuters foresee strong reports from such big names as Apple (AAPL), eBay (EBAY), IBM (IBM), General Electric (GE), Google (GOOG), Schlumberger (SLB) and Southwest Airlines (LUV). And fast on the heels of last week's big earnings beat from JPMorgan Chase (JPM), there will be plenty more results from the financial sector to peruse this week.

Among the financials expected to post double-digit earnings growth this week are Capital One Financial (COF), Morgan Stanley (MS), SLM Corp. (SLM) and U.S. Bancorp (USB), but the week's biggest earnings winner may be Wells Fargo (WFC).

Continue reading Week in Preview: Banks in the Earnings Spotlight

Week in Preview: Banks in the Earnings Spotlight originally appeared on BloggingStocks on Sun, 16 Jan 2011 12:30:00 EST. Please see our terms for use of feeds.

Freddie Mac has a new CEO CFO and his name is Ross Kari. Can you guess his compensation? Is it reasonable in light of the fact that Freddie Mac is controlled by the government?

In these days when we have 5.4 million people who have been on unemployment for at least six months, Kari's compensation is $5.5 million, which includes $2 million as a signing on bonus and a generous salary of $2.3 million.

Continue reading New Freddie Mac CFO hits the compensation jackpot

New Freddie Mac CFO hits the compensation jackpot originally appeared on BloggingStocks on Sat, 03 Oct 2009 14:40:00 EST. Please see our terms for use of feeds.

"Even among the broad-based market carnage of the past year, regional banks with heavy real estate exposure have been notably poor performers," notes turnaround expert George Putnam.

In The Turnaround Letter, he explains, "While investors are still wary of this group, there are cases where the market has overreacted and the stocks will eventually rebound dramatically." Here, he looks at four favorite regionals.

"Many regional banking stocks are now trading at a small fraction of their 'book value.' In more normal times, most banks will trade for two to three times book value and sometimes more.

Continue reading Four bank turnarounds: Rebound in regionals?

Four bank turnarounds: Rebound in regionals? originally appeared on BloggingStocks on Fri, 07 Aug 2009 13:00:00 EST. Please see our terms for use of feeds.

Cincinnati-based Fifth Third Bancorp (NASDAQ: FITB) announced Wednesday that it plans to sell stock in order to raise capital. FITB plans to sell $750 million of common stock in order to meet its commitment to push its capital beyond the $1.1 billion it needs according to the recent stress tests.

The bank will perform two transactions to help provide the common equity. FITB plans to sell up to an aggregate of $750 million of its common shares occasionally with an "at the market" offering through Morgan Stanley and Merrill Lynch. The firm expects to use a part of the proceeds of shares issued under the offering to fund the cash portion of its offer to exchange cash and common shares for Series G convertible preferred depositary shares.

Continue reading Fifth Third to raise capital by selling stock

Fifth Third to raise capital by selling stock originally appeared on BloggingStocks on Thu, 21 May 2009 09:45:00 EST. Please see our terms for use of feeds.

With the results of the bank stress tests looming this afternoon, many people are wondering what the results will hold for the 19 tested banks. One of the banks tested but not named as much is Fifth Third Bancorp (NASDAQ: FITB); its results are of major interest in my hometown of Cincinnati, Ohio.

In the electronic version of the local fishwrap (The Cincinnati Enquirer), Erik Oja from Standar & Poor's was interviewed about FITB's situation. Oja contends that "Fifth Third will be required to raise capital ... How much is the issue."

Continue reading What do the stress tests have in store for Fifth Third Bank?

What do the stress tests have in store for Fifth Third Bank? originally appeared on BloggingStocks on Thu, 07 May 2009 10:45:00 EST. Please see our terms for use of feeds.

Fifth Third (FITB) gets a small vote of confidence originally appeared on BloggingStocks on Mon, 03 Nov 2008 14:14:00 EST. Please see our terms for use of feeds.

In this series, we take a look at the 25 stocks on the S&P 500 Index (SPX) that have turned in the worst performance during the past decade -- what went wrong, and what happens next.

If you live or work in Cincinnati, it's impossible to avoid Fifth Third Bancorp (NASDAQ: FITB). Branches and ATMs pop up around nearly every street corner, and, if you're downtown at lunch time, you'll see hundreds of employees from FITB's downtown headquarters flooding the sidewalks. (They're easy enough to pick out, since they're required to wear gold 5/3 insignia pins.) And please, don't get me started on the madness that is Fifth Third Day, which naturally falls on 5/3. Despite its impressive banking dominance over this Midwestern city, FITB -- to paraphrase Chris Farley -- just can't seem to get its share price on the right track.

What went wrong? At number 16 on our list of SPX laggards, FITB shed 76% of its value during the 10-year period ending June 30, 2008. If you're mentally steeling yourself for another subprime sob story, Fifth Third won't deliver. The stock has crumpled steadily since its April 2002 peak at $69.70, defiantly blazing a path lower even as the rest of the broad market enjoyed a stellar bull run.

In the late '90s and through the turn of the century, FITB grew at a pace that cancer cells would envy. From CNB Bancshares to Vanguard Financial to State Savings, the regional bank swallowed up its peers and rivals with a voracious appetite to rival Jabba the Hut's. A fine growth strategy -- if your bean-counters are all on the same page. When FITB took a $54-million charge against earnings after improperly accounting for some mortgage-backed security investments, it drew the attention of the SEC. In the meantime, the Federal Reserve Bank of Cleveland and the Ohio Department of Commerce imposed a moratorium on any further acquisitions.

Continue reading Worst 10-year performers: Fifth Third Bancorp crippled by growing pains

Worst 10-year performers: Fifth Third Bancorp crippled by growing pains originally appeared on BloggingStocks on Mon, 28 Jul 2008 06:00:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• The Wall Street Journal's "Fund Track" reported that some banks struggling to raise capital may sell their money management units. National City Corporation (NYSE: NCC) is selling its Allegiant Funds, Fifth Third Bancorp (NASDAQ: FITB) is considering selling its Fifth Third Asset Management, and KeyCorp (NYSE: KEY) will possibly sell its Victory Capital Management unit.
• The Wall Street Journal also reported that Andrew Cuomo, the New York state Attorney General, is preparing to file civil securities-fraud charges against UBS AG (NYSE: UBS), possibly as early as this week. Sources said the lawsuit may include allegations of malfeasance by senior UBS executives.

• Bloomberg reported that money manager John Paulson, the owner of Paulson & Co., is launching a hedge fund that will provide capital to financial firms which have been damaged by the housing crisis. Paulson, who wants to open the fund by December, used bets against the U.S. housing market to help him earn $3.7B in 2007.
• After U.S. lawmakers reached a deal on legislation to alleviate the housing recession, the House of Representatives will today vote on a rescue plan for Fannie Mae -- Federal National Mortgage Association (NYSE: FNM) -- and Freddie Mac -- Federal Home Loan Mortgage Corporation (NYSE: FRE). Representative Barney Frank said that the package, which increases the likelihood Treasury Secretary Henry Paulson will get the authority to inject capital into the two, is "fully acceptable," Bloomberg reported.
• Oil trading losses forced SemGroup LP, which used to be America's 12th largest private company, to declare bankruptcy yesterday. Reuters noted that SemGroup LP's parent company is SemGroup Energy Partners LP (NASDAQ: SGLP).

Newspaper wrap-up: Some banks consider selling money management units originally appeared on BloggingStocks on Wed, 23 Jul 2008 08:50:00 EST. Please see our terms for use of feeds.

Minyanville's Sean Udall dares to share the kind of keen insight and actionable information you won't find in any prospectus. For more original thought, visit

Goldman is golden originally appeared on BloggingStocks on Thu, 19 Jun 2008 17:23:00 EST. Please see our terms for use of feeds.

In the banking world, the worst time to raise money is when you really need it. Ironically, this is the predicament for many banks - especially those that binged on subprime mortgage.

One of the latest victims is Fifth Third Bancorp (NASDAQ: FITB), which traces its roots back to 1858 (the company is the result of the merger of Third National Bank and yes, the Fifth National Bank).

Well, Fifth Third announced Wednesday that it plans to raise a minimum of $2 billion, which will include convertible preferred shares as well as the sale of non-core assets (for example, there is an electronic processing business that is likely to fetch a good valuation). There's more: the company says it will reduce the dividend by 66% (I guess it's better than nothing).

Basically, Fifth Third has heavy concentration in Florida and Michigan, both undergoing economic stress (whether from autos, real estate or construction). There are also some problems with leveraged leases that recently also suffered an adverse court ruling.

Unfortunately, in the current environment, it's not going to be easy to raise new capital. That is, the terms are likely to be harsh.

And investors are already anticipating this. In Wednesday's trading, Fifth Third's shares plunged 27% to $9.26.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

Fifth Third equals zero for investors originally appeared on BloggingStocks on Thu, 19 Jun 2008 09:47:00 EST. Please see our terms for use of feeds.

Fifth Third Bancorp (NASDAQ: FTIB) is recently trading down $1.73 to $11 in pre-open trading.

FITB announced the planned issuance of $1 billion in tier 1 capital in the form of convertible preferred shares. FITB declared a Q2 dividend of 15 cents, a reduction from the previous 44 cents per share quarterly level. FITB says the anticipated sales of non-core business would supplement common equity by an estimated additional $1 billion.

FITB overall option implied volatility of 86 is above its 26-week average of 47 according to Track Data, suggesting larger price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Option Update: Fifth Third Bancorp volatility up into capital raise originally appeared on BloggingStocks on Wed, 18 Jun 2008 08:29:00 EST. Please see our terms for use of feeds.

The level of bad loans at US banks is getting worse and not better. According to the FT, "Sheila Bair, chairwoman of the Federal Deposit Insurance Corporation, said it was likely loan-loss provisions and bank failures would rise in coming quarters as the fallout from market turmoil hits the real economy."

Three banks have failed this year and the FDIC says the number of "problem" banks sits at 90.

All of this may be tough on regulators who may have to bail banks out, but it could be tougher on shareholders who have stock in mid-sized and regional banks. NCC (NYSE:NCC) has already had to raise $7 billion. Its shares are down to $5.68 from a 52-week high of $35.83. Other banks in the same category, such as Fifth Third (NASDAQ:FITB) and KeyCorp (NYSE:KEY), have lost about half their price compared to 52-week highs.

The news from the FDIC shows that investing in financial firms remains tricky and dangerous. It is not for the faint of heart.

Douglas A. McIntyre is an editor at 247wallst.com.

More bank failures down the road (NCC) (KEY) (FITB) originally appeared on BloggingStocks on Fri, 30 May 2008 09:15:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• The Wall Street Journal reported that a federal judge said that the government had "sufficient evidence" for a jury to conclude that a conspiracy to fraudulently boost the financials of American International Group Inc (NYSE: AIG) began with former CEO Maurice R. "Hank" Greenberg. That led to a transaction that artificially inflated AIG's loss reserves.
• Citigroup Incorporated's (NYSE: C) Falcon Strategies fixed income hedge fund is down 75%, the Wall Street Journal reported, bad news for the three U.S. banks that invested in it to help increase returns on employee life insurance. One of the banks, Fifth Third Bancorp (NASDAQ: FITB), is suing Transamerica Life and Smith Barney, both of whom helped to arrange the investment, and some are now questioning whether Citigroup will be forced to give back some of the investments as they have with individual investors.
• After it stopped offering some mortgages last month because it was swamped by volumes of new applications, the Financial Times reported that First Direct, a unit of HSBC Holdings Plc (NYSE: HBC), has resumed lending to new customers. The bank said it has continued to receive "significant interest" in its mortgages from existing customers.

• In an effort to raise capital from shareholders, the Telegraph reported that Barclays Plc (NYSE: BCS) is considering a takeover bid for a rival in the U.S. or UK. Sources believe Barclays may attempt to acquire an investment bank, a struggling bank or a deal in a fast-moving economy. Potential names mentioned include UBS AG (NYSE: UBS) and Lehman Brothers Holdings Inc (NYSE: LEH).

Newspaper wrap-up: Citigroup may have to repay some hedge fund losses originally appeared on BloggingStocks on Tue, 20 May 2008 08:00:00 EST. Please see our terms for use of feeds.

National City (NYSE: NCC) closed at $9.79 Thursday.

The WSJ reported Fith Third Bancorp (NYSE: FITB) is considering a bid to purchase NCC according to people familiar with the situation.

NCC announced on April 1 that its Board of Directors are reviewing a range of strategic alternatives for the company.

FITB has $110 billion in assets. NCC has $150 billion in assets.

NCC May option implied volatility of 110 is above its 26-week average of 58 according to Track Data, suggesting larger price fluctuations.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Option Update: National City volatility at 110 as board reviews strategic alternatives originally appeared on BloggingStocks on Fri, 04 Apr 2008 09:02:00 EST. Please see our terms for use of feeds.

Popular, Inc. (NASDAQ: BPOP) volatility elevated at 51 as shares near 10-year low.

Comerica Incorporated (NYSE: CMA) option implied volatility elevated at 45.

Fifth Third Bancorp (NYSE: FITB) volatility elevated at 40 as shares near 1-year low.

TCF Financial Corporation (NYSE: TCB) volatility elevated at 53 as shares near six-year low.

Daily Options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Option update 11-26-07; Regional bank volatility suggests risk originally appeared on BloggingStocks on Mon, 26 Nov 2007 18:30:00 EST. Please see our terms for use of feeds.

National City (NYSE: NCC) volatility Elevated; NCC sells off on EPS & loan exposure. NCC reported 3rd quarter 2007 net income of $106 million, or 18 cents per diluted share. Goldman Sachs says "turning NCC around is going to take time. Mortgage contributions are likely to remain depressed, while credit will remain an issue." NCC has a current dividend yield of 7.34%. NCC November option implied volatility of 45 is above its 26-week average of 31 according to Track Data, suggesting larger price fluctuations.

Fifth Third Bancorp (NASDAQ: FITB) volatility Elevated as FITB near 10-year low. FITB, headquartered in Cincinnati, is recently down $0.99 to $28.99. Smith Barney says "while FITB was going through its regulatory issues, it tried to offset by taking on more rate risk. One of our concerns has been that it was also taking more credit risk." FITB November option implied volatility of 38 is above its 26-week average of 27 according to Track Data, suggesting larger price risks.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Option update 10-24-07: National City, Fifth Third Bancorp volatility up originally appeared on BloggingStocks on Wed, 24 Oct 2007 12:57:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Palm Inc (NASDAQ: PALM) was upgraded to Outperform from Market Perform by Morgan Keegan, who expects PALM's recapitalization to bring more financial discipline, better growth from new products, and views the valuation as compelling.
• FuelTech Inc (NASDAQ: FTEK) was upgraded to Buy from Accumulate at ThinkEquity, which believes the company technologies are well-positioned as the U.S. Clean Air Act takes effect.
• Bank of America upgraded Weyerhaeuser Company (NYSE: WY) to Buy from Neutral, citing valuation and their prediction that the company's restructuring will create value for shareholders.
• John Wiley & Sons Inc (NYSE: JW.A) was upgraded to Buy from Hold by Stifel Nicolaus & Co, which views the company as a consistent performer with emerging catalysts and reasonable valuation.

• Circuit City Stores Inc (NYSE: CC) was added to the SMid Money List at JP Morgan.
• Fifth Third Bancorp (NASDAQ: FITB) was upgraded to Market Perform from Underperform at Keefe Bruyette & Woods.
• United Technologies Corporation (NYSE: UTX) was upgraded to Outperform from Market Perform by Bernstein.
• BreitBurn Energy Partners LP (NASDAQ: BBEP) was upgraded to Buy from Hold by AG Edwards.

Analyst upgrades: PALM, FTEK, WY and JW.A originally appeared on BloggingStocks on Fri, 14 Sep 2007 10:00:00 EST. Please see our terms for use of feeds.