U.S. Bank, Wells Fargo get boost from mortgages

Here’s a big reversal from a year ago: banks getting a boost from the housing market. Reuters reports that mortgages gave a big boost to U.S. Bancorp and Wells Fargo, both of which reported results this morning for their most recent financial quarter.

U.S. Bancorp reported $276 million in mortgage banking revenue, up 350 percent from a year ago. Wells Fargo reported $3.1 billion in mortage banking revenue and a record third-quarter profit of $3.2 billion, up 98 percent.

TCF Bank also reported results this morning. The bank, which is headquartered in Sioux Falls (wink, wink), said its net income for the quarter was $17.5 million, down 33 percent compared to last year’s $30 million profit. CEO Bill Cooper cited high unemployment for driving an increase in consumer defaults.

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Comments (2)

  1. Submitted by Richard Schulze on 10/21/2009 - 09:24 pm.

    I like how credit markets miraculously unfreeze at LIBOR + 10% and “LTV” of 30%

  2. Submitted by Jeff Kline on 10/23/2009 - 01:01 pm.

    This story is a tad misleading. Fact is that one of these “institutions” just had massive layoffs (I know some), and that a large number of their holdings (Mortgages) have gone into foreclosure (I know lots of these). These properties now will go for so called “pennies on the dollar” like other properties.

    Something fishy this way comes. 🙂

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