Thu, Aug. 25, 3:13 PM
- In the latest instance of partnering with a fintech firm instead of fighting it, JPMorgan (NYSE:JPM) will team with TrueCar (NASDAQ:TRUE) for Chase Auto Direct, allowing customers to shop for and then finance their new/used car on their computer or smartphone.
- The offering will initially be available to existing customers in 30 states, with further phases to be rolled out next year.
Wed, Aug. 24, 2:47 PM
- Harish Grama is set to join JPMorgan (NYSE:JPM) next week as CIO for cloud services, according to Heather Glazer at the WSJ, citing an internal bank memo. Grama was previously at IBM for 20 years, most recently as head of software development for that company's cloud unit.
- In this revenue-challenged environment, cutting costs is of paramount importance for lenders, and JPMorgan surely isn't alone in looking of ways to use the public cloud to help do so. Earlier this year, the WSJ reported Amazon's cloud business pitched its service to banks like JPMorgan, Goldman Sachs, and Citigroup.
Thu, Aug. 18, 5:32 AM
- Sixteen banks, including JPMorgan (NYSE:JPM), Citigroup (NYSE:C) and Morgan Stanley (NYSE:MS), are being sued by funds in the U.S. for allegedly manipulating a key Australian interest rate benchmark to generate hundreds of millions of dollars in illicit profits.
- The class action, claims they sought to fix the bank bill swap rate, the local equivalent of Libor, which is used to price floating-rate bonds and syndicated loans.
Tue, Aug. 16, 10:02 AM
- Currently head of digital for consumer and community banking at JPMorgan (NYSE:JPM), Gavin Michael is expected today to be announced as a new hire at Citigroup (NYSE:C). Michael will lead the "long-term strategic direction" of consumer-banking technology, according to a memo from Stephen Bird, head of Citigroup's consumer bank.
- Source: Christina Rexrode at the WSJ.
- Michael will be based in New York, and be in charge of about 4K tech employees in Citi's consumer bank. He's expected to start in November, and is replacing Mark Torkos, who retired last month.
- JPMorgan notified its staff last week of Michael's departure, and has named head of consumer and community banking operations Bill Wallace as its new digital chief.
- For Citi's part, the Michael move comes just days after the announced departure of Citi FinTec head Heather Cox.
Tue, Aug. 16, 9:41 AM
- "We find it tough to make an enthusiastic bull case for the [large-cap banks] group given the fact that we are six years into the positive side of a credit cycle that will eventually weaken," writes Bernstein analyst John McDonald, downgrading JPMorgan (JPM -0.3%) to Market Perform from Outperform.
- "We don't see enough upside in JPM shares at the current valuation to keep an Outperform rating."
Fri, Aug. 12, 2:05 AM
- Big Wall Street banks, including Goldman Sachs (NYSE:GS), Morgan Stanley (NYSE:MS) and JPMorgan Chase (NYSE:JPM), have asked the Federal Reserve to grant them an additional five-year grace period to comply with the Volcker rule, according to Reuters.
- If granted, the extension would see the changes not kick in until 2022.
- The Fed also said the lenders must specify the investments they are referring to, before it makes a decision.
Wed, Aug. 10, 3:15 PM
- Incentive pay for fixed-income sales and trading may fall 10-15% this year, according to Johnson Associates. Three months ago, the firm forecast a 15-20% decline. Bankers involved in corporate M&A may see bonus pay fall just 5-15% vs. an earlier expectation for 10-15%.
- Source: Bloomberg's Laura Keller
- The Brexit vote, notes Alan Johnson, may not erode H2 revenue as much as previously thought.
- It's a little bit of good news for an industry still having to deal with sluggish revenue. Goldman Sachs (NYSE:GS), JPMorgan (NYSE:JPM), and Morgan Stanley (NYSE:MS) slashed first-half compensation by the most in at least four years, according to the most recent filings. At Goldman, the average H1 compensation fell 29% to $168.65K.
Mon, Aug. 8, 9:45 AM
- JPMorgan Chase (JPM +0.2%) is downgraded to Neutral from Buy with a $65 price target at Citigroup, which says JPM's premium to peers in an industry that is fairly valued at cost of equity has dwindled.
- Given the environment of prolonged low rates and growth, Citi believes that banks are now trading range stocks, and a better time to add to positions would be when sentiment is negative.
- While the firm continues to see good news regarding interest rates, it prefers Bank of America (BAC +0.7%), which seems to be better positioned for higher rates with more room for multiple revaluation.
Tue, Aug. 2, 7:04 AM
- July monthly performance was: +3.3%
- 52-week performance vs. the S&P 500 is: -5%
- No dividends were paid in July
- Top 10 Holdings as of 3/31/2016: JPMorgan Chase & Co (JPM): 2.91993%, US Treasury Note 1.125%, Citigroup Inc (C): 2.71706%, US Treasury Note 0.5%, General Electric Co (GE): 2.15542%, Bank of America Corporation (BAC): 1.79099%, Morgan Stanley (MS): 1.36115%, Target Corp (TGT): 1.36065%, US Treasury Note 1.625%, Carnival Corp (CCL): 1.28533%
Tue, Aug. 2, 3:55 AM
- The integrity of the eurozone is at risk once Britain leaves the European Union, Jamie Dimon told CNBC, calling the scenario a possible "fat tail outcome" of Brexit.
- "It may take more than five years, but it may very well happen," he added.
- What does that mean for JPMorgan (NYSE:JPM)? "We have to be prepared for whatever the outcomes are... Whatever the laws of the land are we have to follow. That may require us to do things differently than we do today."
Sun, Jul. 31, 4:23 AM
- Barron's Andy Barry says Wells Fargo's (NYSE:WFC) reported results appear to overstate its underlying earnings power.
- Citing Barclays analyst Jason Goldberg, it notes that "the underlying quarterly profit power of Wells Fargo appears to be closer to 90 cents a share than the roughly $1 that it has reported for 12 quarters. It's true that there is no definition of core bank earnings, and some analysts come up with higher levels of core results than Goldberg does. But the bank's reported results appear to overstate underlying earnings power from its core banking and wealth-management businesses."
- "While it's hard to argue that there is much downside in Wells Fargo shares at their current level, the stock may trail peers in the coming year if earnings estimates continue to come down and there is greater scrutiny of the bank's results."
- UBS analyst Brennan Hawken wrote after the Q2 release that the "results reinforce our concerns around WFC's earnings power." He cited ongoing pressure on the bank's margins and wrote that "we expect the consensus [earnings] to continue trending downward." He carries a Sell rating and $45 price target.
- Barron's sums it up: "Wells Fargo has one of banking's top franchises, but its reported results appear to overstate its underlying earnings power. Peers such as JPMorgan (NYSE:JPM), with cleaner profits and lower valuations, look more attractive."
Thu, Jul. 28, 2:04 PM
- It's a switch for Matt O'Connor and team, who up until now have preferred JPMorgan (NYSE:JPM). The Bank of Dimon, however, has outperformed Bank of America (NYSE:BAC) by a full 1,100 basis points this year, making BofA's valuation enticing.
- There's more though, as BofA has more in the way of expense cuts ahead of it, not to mention less consumer credit risk thanks to its higher FICO customers.
- Back to valuation: Bank of America trades at a 12% discount to JPMorgan based on 2017 estimates. The discount seems warranted given JPM's historically better execution and more stable earnings. If BofA can deliver on its cost-cutting targets, says O'Connor, there's potential for this discount to narrow.
Tue, Jul. 26, 9:30 AM
- Investors are underestimating the ability of certain lenders to grow earnings even if rates continue to stay super-low, says analyst Erika Najarian.
- Fitting the bill are Citizens Financial Group (NYSE:CFG), JPMorgan (NYSE:JPM), SunTrust (NYSE:STI), PNC Financial (NYSE:PNC), and Wells Fargo (NYSE:WFC).
- How might earnings grow in the absence of improved margins? Fee revenue, lower provisions, and efficiency improvements, says Najarian.
Fri, Jul. 22, 12:53 PM
- JPMorgan's (JPM +0.5%) departure would leave BNY Mellon (BK +1.4%) as the only bank left handling this niche corner of the $1.6T repo market.
- "This area is not core to our growth strategy," says JPMorgan's Michael Albanese.
- American banks in general have been backing away from what used to be the low cost, high volume repo market thanks to post-crisis rules heightening liquidity requirements and capital expenses.
Wed, Jul. 20, 2:17 PM
- Alongside falling profits at Goldman Sachs (NYSE:GS), JPMorgan (NYSE:JPM), and Morgan Stanley (NYSE:MS), the trio collectively cut employee pay in Q1 and Q2 by 17% to $19B, according to a Bloomberg review of regulatory filings.
- It's a big change from a year ago when the three boosted H1 compensation by 4%.
- Goldman cut the most, setting aside 28% less to $5.99B. Morgan Stanley trimmed 14% to $7.7B, and JPMorgan 6% to $5.3B. Citigroup and Bank of America don't break out compensation for the IB units.
- Source: Laura Keller at Bloomberg
Tue, Jul. 19, 11:59 AM
- With interest rates continuing to pressure revenues, banks - after years of slashing costs - are coming under renewed pressure to trim even more expenses. But what's left?
- Source: Dan Freed and Olivia Oran at Reuters
- The digital revolution has raised hopes for leaner operations, but Bank of America (BAC +0.7%) still spends $1B per year shuffling papers and transporting money in armored trucks. Other costs like mailing paper account statements, replacing lost credit cards, and repairing ATMs haven't gone anywhere either.
- JPMorgan (NYSE:JPM) - which for years has bragged about technology allowing customers to bank with their smartphones - had to start hiring tellers again due to customer complaints (it's also hiking pay).
- Count Wells Fargo (NYSE:WFC) and Citigroup (NYSE:C) to the above two names as those reporting year-over-year profit declines thanks to the top-line challenges posed by low rates. On the conference call, management faced continued grilling about operating expenses. For its part, Bank of America promised another $3.3B in annual expense cuts.
JPMorgan Chase & Co. is a financial holding company that provides financial and investment banking services. It offers a range of investment banking products and services in all major capital markets, including advising on corporate strategy and structure, capital-raising in equity and debt... More
Industry: Money Center Banks
Country: United States