San Diego City Attorney Michael Aguirre said Wednesday he filed a lawsuit against Bank of America Corp and its Countrywide unit to prevent the mortgage lenders from foreclosing on homes in his city, which he aims to make a "foreclosure sanctuary."

San Diego's city attorney said on Wednesday he filed a lawsuit against Bank of America Corp <BAC.N> and its Countrywide unit to prevent the mortgage lenders from foreclosing on homes in the city, which he aims to make a "foreclosure sanctuary."

By Marty Graham

Shares of most national banks mostly rose Wednesday, despite Washington Mutual Inc. and Wachovia Corp. reported wider-than-expected second-quarter losses a day earlier.

Industry data to be released Wednesday will show whether home loan applications continued to rise as mortgage rates fell last week.

Surprisingly large second-quarter losses at Wachovia Corp. and Washington Mutual Inc. have quickly revived concerns that the financial sector still has a long way to go before it recovers from the year-old credit crisis.

One of 38 people charged in a global crime ring that allegedly stole personal information from unsuspecting Internet users pleaded guilty Tuesday to a federal fraud charge.

Stocks surged in the final hour of trading as a sharp drop in oil prices and an analyst note prompted a late rally in financials. The Nasdaq eked out a gain but investors still punished select techs, including Apple and Texas instruments after the firms dispatched disappointing results.

The head of a major mortgage industry trade group is stepping down after more than seven years at the organization and is being replaced by the former president of a California mortgage company that shut down last year.

By Kristina Cooke

Bank of America Corp. has become the latest in a string of big banks whose second-quarter earnings, while hurting from the impact of the credit crisis, still managed to beat Wall Street expectations.

Merrill Lynch & Co. Chief Executive John Thain is making a pitch to Wall Street: Buy the brokerage's shares while they're still cheap. But investors don't seem ready to listen.

Citigroup has become the latest big bank to quell Wall Street's worries about a financial sector implosion, posting a $2.5 billion second-quarter loss that was smaller than expected.

Investors interested in buying and selling U.S. bank stocks based on the performance of the underlying businesses might well have gone on holiday this week  --  and might stay there next week.