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Citigroup (NYSE:C) effort to streamline its North American consumer finance unit caused overdue loans to jump more than expected as the bank moved 750,000 customer accounts to new locations, a person briefed on the matter said. CitiFinancial’s delinquency rate last month was 0.25 percentage points more than executives had forecast, according to the person, who declined to be identified because the figures aren’t public. The firm had expected disruptions in its operations would lead to more missed payments as 330 branches were closed and about 180 were converted into “servicing centers” for troubled loans, the person said. Any losses will add to the cost of Chief Executive Officer Vikram Pandit’s effort to restructure and rebrand CitiFinancial to make it attractive for an eventual sale. He has been trying to sell CitiFinancial since January 2009 after Citigroup’s $45 billion bailout by U.S. taxpayers. Buyers have stayed away amid consumer joblessness and rising costs for financing loans. –Bloomberg
Wells Fargo (NYSE:WFC) Securities downgraded electric utility Pepco Holdings (NYSE:POM) to market perform from outperform, citing valuation. The broker said it hasn’t changed its underlying belief that a sharpened focus on the regulated business will bear fruit over time for Pepco. Wells Fargo added that it believes the group’s dividend, which currently provides a yield of 6%, remains secure and could begin to grow in 2014. –MarketWatch
Bank of America (NYSE:BAC) will offer free services and reimbursement for losses to as many as 17 million consumers to settle allegations of data theft related to its Countrywide Financial mortgage unit. The accord settles more than 30 lawsuits filed since Aug. 2008, The Los Angeles Times reported. Federal authorities accused Rene L. Rebollo, who worked for the Countrywide subprime division, of downloading confidential information on customers and selling it to employees of other mortgage lenders to use as sales leads. Rebollo pleaded not guilty to charges of fraud, unauthorized access to the computer of a financial institution, illegal use of confidential information, and disclosing Social Security numbers. His trial is set to begin on Oct.19. –Daily Finance
Oil futures fell for the fifth consecutive day, hitting fresh seven-week lows as investors sought safe havens amid fears about a slowdown in global economic growth. The front-month October Brent contract on London’s ICE futures exchange recently was 66 cents, or 0.9%, lower at $72.96 a barrel. –The Wall Street Journal
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