Seeking Alpha
  • Thursday, May 28, 2015

  • 4:58 PM
    • GE has picked Deutsche Bank to sell Italian lender GE Capital Interbanca as part of a strategic review to refocus the U.S. company around its industrial base, Reuters reports.
    • GE Capital Interbanca specializes in lending and financing transactions for medium-sized Italian firms and has a book value in excess of €1B ($1B), Reuters says in citing a source that does not say how much a sale might fetch.
    • A sale reportedly was aimed for the end of a strategic review to identify whether the business will be sold in parts or in an outright deal, but several banks and investment firms already have signaled their potential desire to submit bids.
  • 2:10 PM
    • J.P. Morgan Chase (JPM -0.7%) has begun layoffs that are expected to total more than 5,000 by next year, eliminating at least 2% of the bank's total workforce,WSJ reports.
    • The layoffs are said to affect all four of the bank’s major business units: corporate and investment banking, consumer and community banking, asset management and commercial banking.
    • At least 1,000 of the 5,000 layoffs already have been carried out in the past few months, but more are expected as JPM continues to slim expenses in an effort to meet profitability goals, according to the report.
    • JPM cut 7,900 mortgage jobs and left certain businesses last year, and has slimmed its workforce to ~240K employees following cuts in 11 of the last 12 quarters.
  • 1:05 PM
    • Elbit Imaging (NASDAQ:EMITF): FQ1 Net loss of NIS 130M
    • Revenue of NIS 67.44M (-10.2% Y/Y)
    • Press Release
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  • 8:05 AM
    • Canadian Imperial Bank (NYSE:CM): FQ2 EPS of C$2.28 beats by C$0.04.
    • Revenue of C$3.39B (+7.3% Y/Y) misses by C$80M.
    • Press Release
    | Comment!
  • 6:54 AM
    • Toronto-Dominion Bank (NYSE:TD): FQ2 EPS of C$1.14 beats by C$0.03.
    • Revenue of C$7.76B (+4.3% Y/Y) beats by C$500M.
    • Press Release
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  • 6:35 AM
    • Royal Bank of Canada (NYSE:RY): Q2 EPS of C$1.61 beats by C$0.01.
    • Revenue of C$8.83B (+6.8% Y/Y) beats by C$960M.
    • Press Release
  • 2:43 AM
    • Morgan Stanley (NYSE:MS) CEO James Gorman defended the 25% pay hike to $22.M he was awarded last year - reportedly the highest among Wall Street CEOs - saying it was justified by the bank's performance.
    • "We had three years where the stock went the board, representing shareholders, thought that justified very strong performance," Gorman declared. "In previous years, when we underperformed, we were payed down and that's the way it should be."
    • Shares of the bank have risen over the past three years, up 19% in 2012, 60% in 2013 and 23% in 2014.
    • Previously: Morgan Stanley's Gorman gets 25% pay raise in 2014 (Apr. 01 2015)
  • 2:30 AM
    • The world's most popular sport was plunged into turmoil on Wednesday as U.S. authorities announced charges against nine FIFA officials and five sports executives, alleging they were part of a scheme in which more than $150M in bribes were paid in exchange for the commercial rights to soccer tournaments.
    • The bribes were reportedly paid using accounts at major global banks, raising the prospect that Wall Street could be in the spotlight again over its involvement in yet another scandal. Banks involved: JPMorgan (NYSE:JPM), Citigroup (NYSE:C), HSBC, BofA (NYSE:BAC), UBS and Julius Baer (OTCPK:JBAXY).
    • Nike, which also might be in the hot seat, said it would cooperate with authorities.
  • Wednesday, May 27, 2015

  • 5:18 PM
    • The deal will grow Southwest's (NASDAQ:OKSB) Oklahoma City presence, adding five branches and more than $200M in deposits. The deal also gives OKSB a strategic entry point into Colorado.
    • The deal value is about $41.7M, with 51% of that amount payable in OKSB common stock and the rest in cash. The value works out to 141% of adjusted tangible book value.
    • Southwest expects the purchase to be about 12% accretive to EPS in 2016 and 14% in 2017. It will be roughly 4% dilutive to tangible BVPS.
    • A conference call is set for tomorrow at 10:30 ET.
    • Source: Press Release
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  • 5:04 PM
    • The Houston facility is Ocwen's (NYSE:OCN) smallest residential servicing call center on the U.S. mainland, so the company - in cost-saving mode - chose it to be discontinued.
    • About 140 residential servicing employees will be let go vs. the company-wide headcount of 3.2K.
    • Ocwen's commercial servicing unit will continue operations out of the Houston location.
    • Source: Press Release
    • Shares -2% after hours
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  • 4:59 PM
    • The combined company will have about $3.6B in assets, $2.8B in gross loans, and $3B in deposits across 23 locations, with Patriot adding six branches in Houston, two in Dallas, and one in Fannin County. The combination will make for the 15th largest bank headquartered in Texas and the 7th largest Texas bank by deposits in the Houston area.
    • Green Bancorp (NASDAQ:GNBC) will issue 10.76M shares as consideration to Patriot Bancshares owners. The deal value based on yesterday's close is $139M.
    • Source: Press Release
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  • 3:47 PM
    • “God knows how any of you can place your vote based on ISS or Glass Lewis,” says the JPMorgan (JPM +1.3%) CEO, chiding "lazy" investors who pay too much heed to proxy advisors. "If you do that, you are just irresponsible, I’m sorry. And you probably aren’t a very good investor, either.”
    • Top executives narrowly won approval for their pay 2014 pay package, in part after ISS and Glass Lewis recommended investors reject the deal.
    • Moving to operations, Dimon says Q2 trading volumes are about inline with where they stood one year ago.
    • "It's a terrible thing to have to go through," says Dimon, speaking of last week's guilty plea over forex manipulation. While not crippling, Dimon does expect the outcome to cost the bank some business.
    • Webcast
  • 3:20 PM
    • Among those expected to submit final offers tomorrow are the Canada Pension Plan, Guggenheim Securities, Apollo Global (NYSE:APO), and Ares Management (NYSE:ARES), reports the WSJ, which says the unit could fetch more than $17B. Other participants could be foreign banks, SWFs, and insurance companies.
    • GE's sponsor-finance business lends money for the buyouts and operations of midsize companies by private-equity firms. The unit has more than 400 loans outstanding, the majority below $100M, and a team of roughly 300 originating loans and managing the portfolio.
    • Previously: Bloomberg: GE near deal to sell fleet-management assets (May 26)
    | 1 Comment
  • 2:56 PM
    • Alongside the declaration of its $0.24 semi-annual dividend, SEI Investments (SEIC +1.6%) adds $200M to it repurchase program, bringing the total authorized to about $212M
    • The company has bought back roughly 2.1M shares YTD at a cost of $91M.
    • Source: Press Release
    • Previously: SEI Investments declares $0.24 dividend (May 27)
    | Comment!
  • 12:53 PM
    • Amid its investigation of JPMorgan's (NYSE:JPM) hiring practices in China, the SEC last month issued a subpoena requesting all communications between the bank and 35 mostly high-ranking Chinese officials. Topping the list, reports the WSJ, is Beijing's point man on anticorruption, Wang Qishan (the DOJ has requested information as well).
    • Mr. Wang's name previously had not come up in media reports of the investigation, and his inclusion could put a strain on U.S.-China relations.
    • Including Mr. Wang, none of the Chinese officials connected to the hiring affair have faced censure there, and it's unclear whether Beijing even considers such behavior a problem.
    | 1 Comment
  • 11:29 AM
    • Taking note of FQ4's disappointing results and cutting estimates downward to reflect the ending of the SURVIAC contract, BAML nevertheless reiterates its Buy rating on Booz Allen Hamilton (BAH +2%). The price target is lowered to $30 from $35.
    • "Considering BAH's variable cost structure and its niche position to benefit from increased spending in cyber security by both the U.S. government and the commercial sector, we expect BAH to trade at a premium to defense peers," says the team.
    • Previously: Booz Allen -10.3% after earnings miss (May 21)
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  • 9:30 AM
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  • 9:13 AM
    • "If the environment stays sort of flattish, less volatility, we'll have to keep working that expense base down," says Bank of America (NYSE:BAC) CEO Brian Moynihan, speaking at the Bernstein Strategic Decisions Conference.
    • Webcast
    • The Global Markets unit at his bank posted a Q1 profit of $945M - down 28% year-over-year, with FICC revenue of $2.75B down 7%. Estimates had been for about $3B in revenue, and competitor JPMorgan, to name one, saw a 5% Y/Y increase.
    • Source: Bloomberg
    • Previously: Stronger mortgage numbers, but weaker trading results as BofA beats estimates (April 15)
  • 8:48 AM
    • Boosting its presence in central and southeastern Pennsylvania, Pittsburgh-based F.N.B. Corp. (NYSE:FNB) acquires about $280M in deposits and five branches from Bank of America - including two branches in Berks County, two in Lancaster County, and one in Chester County.
    • FNB currently has 220 locations in PA.
    • The deal is expected to close in Q3.
    • Source: Press Release
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  • 8:23 AM
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