Sep. 24, 2013, 11:49 AM| Sep. 24, 2013, 11:49 AM | 4 Comments
Sep. 24, 2013, 3:43 AM
- The National Credit Union Administration is suing JPMorgan (JPM), Credit Suisse (CS), UBS, Societe Generale (SCGLF.PK), Lloyds Banking Group (LYG), Royal Bank of Canada (RY), and several others on behalf of five failed credit unions.
- According to the suit, the banks' alleged manipulation of LIBOR caused the defunct credit unions to receive "less in interest income than they were otherwise entitled to receive."
Sep. 23, 2013, 4:19 PM
- The DOJ is prepping to sue JPMorgan (JPM -2.5%) as soon as tomorrow, reports Reuters, over MBS sold during the years preceding the financial crisis. The bank disclosed last month it was the subject of civil and criminal investigations by federal prosecutors in California. A source says the probe deals with paper offered by JPMorgan itself, not with those companies the bank purchased amid the crisis (i.e., WAMU and Bear Stearns).
Sep. 23, 2013, 7:36 AM
- Citigroup (C) slips 1% in the premarket after its weekend "pre-announcement" of a big fall in FICC revenue in Q3. The bank had been hoping to get bailed out by a big September, but the Fed's non-taper last week squelched the chance of major portfolio moves by clients.
- Anybody paying attention surely noticed last week's evaporation of profit at Jefferies (now owned by Leucadia) as fixed-income trading revenue essentially disappeared.
- Deutshce Bank (DB) is expected to soon be out with a warning similar to Citibank's. Barclays (BCS) and Credit Suisse (CS) have already waved their own red flags over this issue.
- Not yet heard from are Goldman (GS), Morgan Stanley (MS), JPMorgan (JPM), and BofA (BAC), but Goldman is also off nearly 1% premarket.
Sep. 22, 2013, 2:18 AM
- No sooner does JPMorgan (JPM) settle investigations with several regulators in different areas - as it did last week - then another probe pops into the news. The Massachusetts Attorney General is reportedly scrutinizing the bank over its debt-collection practices.
- The investigation adds to an inquiry by 13 states into JPM's conduct and that of other companies over debt collection, as well as the myriad other probes that the bank faces.
- On Thursday, JPM settled with the the Office of the Comptroller of the Currency and agreed to repay those harmed in the bank's improper handling of credit-card collections.
Sep. 20, 2013, 10:59 AM
- Bank of America's (BAC -0.6%) operating earnings could hit $1.72 per share in 2015 from $1.01 this year, says analyst Murali Gopal, initiating the stock with a Buy (initially reported yesterday). Cost savings, reserve releases, and a strong capital markets business leave the bank "uniquely placed" for sustained outperformance.
- Also started at Buy is Citigroup (C -0.6%) as rising home prices could boost Citi Holdings - the unit into which the bank's legacy assets have been placed. Better earnings should also allow the recapture of Citi's $45B deferred tax asset. He sees 2015 adjusted EPS of $6.31 vs. $4.93 this year.
- JPMorgan (JPM +0.7%) is started at Hold because of the regulatory target on its back, with 2015 EPS expected to rise to just $6.25 in 2015 from $5.88 this year.
- Wells Fargo (WFC -0.6%) also rates just a hold because of the bank's heavy exposure to the slowing mortgage market.
Sep. 20, 2013, 4:20 AM
- Even though JPMorgan (JPM) has agreed to pay various regulators, including the SEC, more than $920M to settle charges over its London Whale trading blunder, the agency is still reportedly carrying out a civil investigation of bank staff who are connected to the fiasco.
- While CEO Jamie Dimon isn't expected to be probed, the SEC is looking at employees who may have been responsible for alleged problems with internal controls and corporate governance.
- One person who might be about to become famous - or infamous - is Jason Hughes, who was responsible for checking the values of the London Whale trades.
Sep. 19, 2013, 1:22 PM
Sep. 19, 2013, 11:56 AM
- "We think they are closer to the finish line than the starting line in terms of fines and settlements," says analyst Erik Oja. "We think J. P. Morgan does quite well, looking at net interest margin, revenue growth and trading income." Yesterday's non-taper from the Fed may leave net interest margin wanting, but JPMorgan (JPM -1%) is thought to be a bit less "asset-sensitive" than some of the other banks.
- In addition to the upgrade to Strong Buy, Oja lifts his price target to $61 from $55.
- Earlier: The bank settles with several regulators over the London Whale and with the OCC over credit-card collections.
Sep. 19, 2013, 10:07 AM
- Stephen Cutler needs a vacation. JPMorgan (JPM -1.1%) settles with the OCC and agrees to repay those harmed in its improper handling of credit-card collections.
- The OCC was also - along with the SEC and and U.K. authorities - a party to JPMorgan's $920M London Whale settlement today, with the OCC at $300M collecting the biggest chunk of the fine.
- More from the SEC on the Whale: "JPMorgan’s senior management broke a cardinal rule of corporate governance: inform your board of directors of matters that call into question the truth of what the company is disclosing to investors. Here, at the very moment JPMorgan’s management was grappling with how to fix its internal control breakdowns and disclose the full scope of its CIO trading disaster, the bank’s Audit Committee was in the dark about the extent of these problems."
- Who is Steve Cutler? He's JPM"s General Counsel.
- Previous: Michael Coyne - in charge of the bank's litigation and government investigation matters - exits last month.
Sep. 19, 2013, 9:19 AM
- JPMorgan (JPM) will pay $920M and admit to violating Federal securities laws in the London Whale case, says the SEC. A fine in this range has been expected for some time, and is a speck on the bank's $2.4T balance sheet, but the notable part is the rare admission of wrongdoing.
- The SEC has a new policy of not letting miscreants get away with the "neither admits nor denies the charges" game so easily. One quick bullet point from the SEC:
- Bank management admits to not adequately updating the board's audit panel, and top executives knew of aggressive CIO marks as early as April 2012.
- The stock's ahead 0.9% in premarket action.
Sep. 18, 2013, 10:30 PM
- JPMorgan (JPM) will pay in excess of $900M in fines and admit to wrongdoing on Thursday, in an effort to settle multiple investigations into the whale-sized blunder (we're running out of whale jokes at this point) that took place in Q1 2012 at the firm's London CIO office, the NY Times says.
- The government authorities involved in the deal reportedly are the SEC, the OCC, the Fed, and the Financial Conduct Authority in London.
- Although it looks likely the blame will not be placed with any of the higher-ups, the bank "will acknowledge that it had lax controls and should have caught the problem faster," Jessica Silver-Greenberg and Ben Protess write.
Sep. 18, 2013, 8:04 AM
- "Simplifying" JPMorgan (JPM) is at the top of the list of the bank's response to the growing wave of legal and regulatory action against it, says Jamie Dimon in a memo to staff, with the divesting of non-core units a "key initiative."
- Recently announced attempts to sell its physical commodities business and the halting of student loans were part of this new strategy, says Dimon. Earlier this summer, the bank also sold its P-E unit, One Equity Partners. Next on the block - amid money-laundering concerns - is the foreign correspondent banking business.
- The moves also mean an end to outsourcing, as Dimon says JPMorgan is "proactively" trying to reduce the number of vendors it deals with, instead bringing the work in-house.
- Company insiders remind the changes are at the margin, and "simpler" does net mean "smaller."
- Previously from Dimon's memo.
Sep. 17, 2013, 7:06 PM
- Sources tell the WSJ the FBI and Manhattan prosecutors are "continuing to gather evidence" related to JPMorgan's (JPM) London Whale disaster, and could end up pursuing criminal charges.
- Though JPMorgan is said to have shown interest in a "global settlement" that would allow it to avoid criminal charges, a source states law enforcement officials aren't willing to play ball.
- The report shortly follows one indicating the CFTC is still probing the mess, and comes a day after Bloomberg reported JPMorgan has agreed to pay at least $750M in fines to regulators in a civil settlement. A settlement announcement could take place on Wednesday or Thursday.
Sep. 17, 2013, 4:06 PM
- JPMorgan Chase & Co. (JPM) declares $0.38/share quarterly dividend.
- Forward yield 2.87%
- Payable Oct. 31; for shareholders of record Oct. 4; ex-div Oct. 2.
Sep. 17, 2013, 3:02 PM
- Not a part of JPMorgan's (JPM -0.3%) reportedly nearing settlement with regulators on both sides of the pond over the London Whale incident, the CFTC is pursuing its own probe, reports the WSJ. Feeling its oats thanks to new powers granted to it by Dodd-Frank, the CFTC is zeroing in on aggressive derivatives bets made in early 2012 as traders tried to contend with growing losses in the bank's credit portfolio.
- Previously, the agency had to prove traders intended to manipulate, but Dodd-Frank allows charges just for reckless action which results in distorted markets. Standing in the way of a settlement with the CFTC is JPMorgan's balking at any deal which would require the bank admit to manipulation.
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
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