TARP program makes money from Wisconsin banks
Milwaukee Business Journal
Executives with Wisconsin banks who believe they have been unfairly lumped into the federal "bailout" have new evidence to the contrary. A recent report shows that Wisconsin banks have paid back more than they received from the U.S. Treasury's Capital Purchase Program. The Capital Purchase Program really wasn't a bailout like those the federal government provided to General Motors, insurer AIG, Fannie Mae and others. The capital program was an effort to infuse capital into the economy when banks's capital ratios were being hurt by loan delinquencies, especially in commercial and residential real estate. "It was never a bailout and certainly these statistics prove that," said Rose Oswald Poels, chief executive officer of the Wisconsin Bankers Association. Milwaukee Business Journal

Fiserv profit jumps 23%
Milwaukee Journal Sentinel
On Thursday Fiserv Inc. reported a 23 percent jump in the fourth quarter as revenue grew to its highest level in more than three years. The Brookfield-based provider of financial technology posted net income of $143 million, or $1.01 per share, compared to $116 million, or 78 cents, in the fourth quarter of 2010. The 2011 quarterly comparison also benefited from a $26 million loss in the fourth quarter of 2010 related to early debt retirement. For all of 2011, Fiserv had net income of $472 million, or $3.28 per share, on revenue of more than $4.3 billion. That compares with net income of $496 million, or $3.27, on revenue of more than $4.1 billion in 2010. In 2011, adjusted earnings per share were $4.58, up 13.1% from $4.05 a year earlier. Milwaukee Journal Sentinel | Also covered in the Milwaukee Business Journal

Bernanke Won't Tolerate Inflation to Boost Jobs
Bloomberg
Federal Reserve Chairman Ben S. Bernanke defended the central bank's newly established price goal and rejected suggestions he was prepared to allow higher inflation to create jobs. Republican Representative Paul Ryan of Wisconsin, chairman of the House Budget Committee, suggested that the Fed might be prepared to allow inflation to exceed its goal to fulfill the second part of its congressional mandate, which is to promote maximum employment. "We are not seeking higher inflation," Bernanke said in response. "We do not want higher inflation and we're not tolerating higher inflation." The Fed last week set a 2 percent annual inflation goal after saying that it would keep its benchmark interest rate low for longer to boost the economy and push down unemployment. Bloomberg

S.E.C. Is Avoiding Tough Sanctions for Large Banks
New York Times
Even as the Securities and Exchange Commission has stepped up its investigations of Wall Street in the last decade, the agency has repeatedly allowed the biggest firms to avoid punishments specifically meant to apply to fraud cases. By granting exemptions to laws and regulations that act as a deterrent to securities fraud, the S.E.C. has let financial giants like JPMorganChase, Goldman Sachs and Bank of America continue to have advantages reserved for the most dependable companies, making it easier for them to raise money from investors and to avoid liability from lawsuits if their financial forecasts turn out to be wrong. S.E.C. officials say that they grant the waivers to keep stock and bond markets open to companies with legitimate capital-raising needs. Ensuring such access is as important to its mission as protecting investors, regulators said. New York Times

Bank Of America Keeps Shrinking
Huffington Post
Once the biggest bank in the country, Bank of America is shrinking before our very eyes. After more than three years at the top, Bank of America is no longer the nation's biggest mortgage servicer, falling behind Wells Fargo last year. In addition, Bank of America said today it was selling and leasing back three office buildings in New York and its home town of Charlotte. This all comes less than four months after Bank of America lost its title as biggest bank in the U.S., when its reported assets fell to $2.22 trillion, below JPMorgan Chase's $2.29 trillion. These are not necessarily bad things for the bank. The bank's mortgage portfolio could still cost it billions of dollars in losses and lawsuits, which is why it is selling assets, raising capital and shedding debt as quickly as it can. Getting small should help - and smaller banks are probably better for the whole economy. Huffington Post