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Wells Fargo and U.S. Bancorp said lending profits are being squeezed by low interest rates, but improving credit quality helped both banks post higher fourth-quarter earnings.

(Corrects first paragraph to show both Wells Fargo and U.S. Bancorp posted higher, not higher-than-expected, earnings)

A sharp drop in bond trading revenue pushed Citigroup Inc fourth-quarter profit far below expectations, highlighting Chief Executive Vikram Pandit's challenges in fully reviving the bank.

China's central bank has cut its 2011 lending target for banks by 10 percent from last year, the official Securities Journal reported on Tuesday, citing unidentified banking sources.

U.S. bank stocks are flying high, and this week's earnings could give investors more reason to be optimistic about the sector.

PRC property developer Evergrande Real Estate Group made history last week with a Rmb9.25bn (US$1.4bn) synthetic renminbi bond - the biggest to date in the fast-growing market.

An improving global economy, solid corporate earnings and even easing fears about euro zone debt have been more than enough to rationalise the rising hunger for riskier assets now prevalent on financial markets.

Bank of America (BofA) has paid $2.8 billion to mortgage finance giants Fannie Mae and Freddie Mac to settle claims that it had sold mortgages to them that did not meet specifications.

High-profile banking analyst Richard Bove said the U.S. banking sector is entering into a “golden age.” The financial strategist at Rochdale Securities explains that banks have so flush cash on their balance sheets that corporate earnings will grow by 20 percent annually over the next few years.

JPMorgan Chase & Co reported higher-than-expected quarterly earnings, helped by narrowing losses on bad loans that allowed it to release $2 billion of reserves.

The devastating floods that have inundated Queensland may significantly reduce Australia’s overall economic growth this year, according to an array of economists and analysts.

A coalition of seven major public pension systems, led by New York City Comptroller John Liu, has asked the boards of four of the largest U.S. banks to examine their mortgage and foreclosure practices.

In a ruling that may affect foreclosures nationwide, Massachusetts' highest court voided the seizure of two homes by Wells Fargo & Co and US Bancorp after the banks failed to show they held the mortgages at the time they foreclosed.

Bank shares are weakening after the Massachusetts State Supreme Judicial Court upheld a decision that two foreclosures from U.S. Bancorp (NYSE: USB) and Wells Fargo (NYSE: WFC) were not valid because the banks did not properly show they held the mortgages at the time of the foreclosure.

Politicians now prefer to appoint JPMorgan executives to highly-visible positions rather than risk public outrage by choosing their Goldman Sachs counterparts.

In a ruling that may affect foreclosures nationwide, Massachusetts' highest court voided the seizure of two homes by Wells Fargo & Co and US Bancorp after the banks failed to show they held the mortgages at the time they foreclosed.

IBTimes compiles a list of the greatest trades of all time with accompying information that explains the rankings.

LinkedIn, the network service for professionals is planning to go public and discussing about a possible IPO, sources informed Reuters.

Stocks began 2011 with a bang – equities leaped, powered by some strong manufacturing data in the U.S. and Europe and by a generally bullish outlook for the new year.

US stocks advanced in early trade on Monday, the first trading day of 2011, on speculation that the economic recovery will continue after stocks ended with double digit gains in the previous year.

Bank of America (NYSE: BAC) is preparing for a potential onslaught of embarrassing and perhaps damaging information about the bank from Julian Assange’s WikiLeaks, according to a report in the New York Times.

Bank of America Corp agreed to settle outstanding claims on poorly underwritten mortgages it sold to government sponsored entities Fannie Mae and Freddie Mac, and said it will put aside $3 billion in the fourth quarter related to the claims.

Many investment banks and commodity analysts have taken a highly bullish stance on crude oil prices for 2011, based largely on economic recovery in the U.S., continued money-printing by the Federal Reserve (thereby, weakening U.S. dollar) and persistent high demand from the emerging markets, particularly China and India.

Wall Street appears to be almost universally bullish about U.S. stocks for 2011.

Top Ten Predictions for U.S. Economy/Markets in 2011. These predictions come from Michael Yoshikami, president and chief investment strategist of YCMNET Advisors Inc. in Walnut Creek, Cal.

Allstate Corp., the largest publicly traded U.S. home and auto insurer, has accused Bank of America (BofA) and its lending unit, Countrywide Financial, of misrepresenting the risk associated with mortgage-backed securities it bought from them beginning 2005, and is suing them for more than $700 million.

US stocks advanced in early trade on Wednesday with S&P 500 Index advanced 1.63 points, or 0.13 percent, to trade at 1,260.14 at 10:00 a.m. EDT. The Dow Jones Industrial Average gained 24.86 points, or 0.21 percent, to trade at 11,600. The Nasdaq Composite Index gained 0.10 percent.

Futures on major U.S. stock indices point to modestly higher opening on Wednesday with futures on the S&P 500 up 0.10 percent, futures on the Dow Jones Industrial Average up 0.10 percent and Nasdaq100 futures up 0.25 percent.

Allstate Corp has sued Bank of America Corp and 18 other defendants over losses it said it suffered on more than $700 million of mortgage debt it bought from Countrywide Financial Corp.