Aug. 21, 2013, 6:30 PM
- Mom-and-pop investors like to see where the "smart money" is going, but Goldman Sachs finds the 50 stocks (with market caps over $1B) that hedge funds are heavily shorting have averaged a 30% gain YTD.
- Top 10 most shorted, based on the number of funds owning the stock: EQIX, LCC, HLF, RDN, BBRY, WNR, VVUS, PHH, DECK, OUTR.
- Top 10 best loved, based on the same criteria: GOOG, AAPL, AIG, C, GM, JPM, BAC, MSFT, QCOM, PFE.
- Complete lists: the 50 most shorted; the 50 best loved.
- Earlier: picks from Goldman's Hedge Fund Monitor.
Aug. 21, 2013, 8:47 AM
- Investors have been overpaying for dividend stocks while undervaluing those firms buying back shares, Oakmark's Bill Nygren tells the crew at Fast Money. Investors should treat both the same, but the stocks of repurchasers aren't as expensive, he says.
- Previous: Buyback ETFs outpacing market and dividend funds.
- Among his favorite picks are Bank of America (BAC) and JPMorgan (JPM). "What we see here is really low P/Es relative to the market and relative to their own history ... These companies sell at about 8x the level that we think they'll earn after the legacy mortgage costs stop going through the income statement."
- Other top picks are Apache (APA) - selling assets for close to full value and buying back shares - Haliburton (HAL) - which has tendered to repurchase 4-5% of its shares - and DirecTV (DTV) - also buying back stock.
- Buyback ETFs: PKW, TTFS.
- Dividend ETFs: FDL, FVD, MDIV, QDF, QDYN, QDEF, DIV, CVY, DVY, HDV, IYLD, PEY, PFM, SCHD, SDY, SDYL, DVYL, VYM, DHS, DTD, SYLD, KBWD, SPHD, DLN, DON, HILO.
Aug. 21, 2013, 6:56 AM
- It's expected the two will have finance and risk management expertise, reports Bloomberg. David Cole and Ellen Futter both stepped down from the board earlier this summer after barely being reelected in wake of the London Whale losses. Both had sat on the risk management committee despite their notable lack of experience (and what experience they had wasn't the greatest) in such matters at banks.
- JPMorgan (JPM) is also facing new regulatory investigations on what seems like a daily basis, so expertise in this area would be a plus as well.
- The board has yet to vote on the new candidates, but a decision is expected next month, says Bloomberg.
Aug. 21, 2013, 3:44 AM
- While the SEC is only now investigating JPMorgan (JPM) for possibly hiring the children of influential officials in China to win business, the recruitment by major banks of well-connected relatives has been going on for over a decade.
- Goldman Sachs (GS) once employed the grandson of former Chinese President Jiang Zemin and Credit Suisse (CS) the daughter of ex-Prime Minister Wen Jiabao. In 2006, the son-in-law of of a politburo member helped Merrill Lynch (BAC) win a deal to work on the $22B IPO of state-owned bank ICBC.
- While some of the recruits work hard, others barely make it to the office. Still, regulators might find it difficult to prove a direct connection between an appointment and the obtaining of a contract.
Aug. 20, 2013, 4:38 AM
- China Everbright Bank has reportedly refuted insinuations that its hiring of JPMorgan (JPM) to help carry out an IPO was linked to the U.S. bank giving a job to the son of Everbright's Chairman.
- The process of appointing JPMorgan was "open and transparent, and there was no so-called issue of passing favors," Everbright said.
- The SEC is reportedly investigating JPMorgan over whether the bank recruited the children of influential Chinese officials in order to win business.
- Hong Kong lawyers have said that the speculation has prompted rival banks to dig through their hiring records.
Aug. 19, 2013, 5:19 PM
- The report comes less than a month after JPMorgan (JPM) agreed to pay $410M to FERC to settle charges it manipulated energy prices.
- It also comes on the heels of a report stating the SEC is investigating JPMorgan's Chinese hiring practices, and one stating the bank expects to be fined by multiple authorities for the London Whale disaster.
Aug. 19, 2013, 8:41 AM
- JPMorgan (JPM) bulls aren't getting much of a premarket dip to buy following the weekend's NYT piece about an SEC investigation into the bank's Chinese hiring practices. Apparently, JPMorgan makes a practice a hiring children of the country's rich and powerful to help seal business deals. In other shocking news reported by the NYT, Red Sox fans booed A-Rod over the weekend.
- One is reminded of the Wal-Mart Mexico bribery "scandal" which broke in April of last year. That was good for about a 10% dip in the shares over the following weeks (they rose about 30% over the ensuing months).
- JPM -0.5% premarket.
Aug. 18, 2013, 1:45 AM
- The SEC is reportedly investigating JPMorgan (JPM) into whether the bank recruited the children of influential Chinese officials in order to win business.
- In one instance, JPMorgan hired Tang Xiaoning, the son of the chairman of state-controlled China Everbright Group. Following the recruitment, the U.S. bank won multiple deals from the Chinese financial conglomerate.
- In another example, JPMorgan recruited Zhang Xixi, the daughter of a Chinese railway official who was later arrested over bribery claims. At the time of Zang's hiring, China Railway Group was in the process of choosing JPMorgan to help it with an IPO.
- JPMorgan referred to the probe in its latest quarterly filing this month, saying the SEC had requested information about the "employment of certain former employees in Hong Kong and its business relationships with certain clients."
- The investigation adds to several other probes into JPMorgan, including into the London Whale trading blunder and mortgage bonds. The bank is the subject of inquiries by at least eight federal agencies and a state regulator in the U.S., as well as by two foreign countries.
Aug. 16, 2013, 2:56 PM
- The liquidators of two Bear Stearns mortgage hedge funds drop a $1.1B lawsuit against Bear Stearns and the fund managers Ralph Cioffi and Matt Tanni after reaching an agreeable settlement with JPMorgan (JPM), according to court documents filed today.
- McGraw Hill Financial's (MHFI) S&P division as well as Moody's (MCO) were also defendants in the suit.
Aug. 16, 2013, 9:50 AM
- The 60-story 1 Chase Manhattan Plaza in lower Manhattan could fetch more than $1B. Its 2.2M square feet of office space is mostly occupied by the bank, but the property would come largely vacant (JPM hasn't disclosed where the employees are relocating to).
- This isn't the first attempt to sell the bank's namesake tower - an ill-timed 2009 effort went nowhere, but now some properties are fetching even more than they did during the pre-crisis boom.
- CBRE Group (CBG) has been hired to handle the sale.
Aug. 15, 2013, 5:15 AM
- JPMorgan (JPM) reportedly expects fines from multiple authorities for its "London Whaling" trading fiasco, with the SEC, the Department of Justice, the Commodity Futures Trading Commission and the U.K.'s Financial Conduct Authority seen imposing penalties.
- The speculation comes after the DOJ yesterday filed criminal charges over the loss against two former JPMorgan traders, although not the man himself, Bruno Iksil, who is cooperating with prosecutors.
- Martin-Artajo, 49, and Julien Grout, 35, are to be held liable for the provision of inaccurate information to investors by "fraudulently" concealing their losses.
- Former senior JPMorgan executives at the bank's Chief Investment Office who supervised Iksil, such as Ina Drew and Achilles Macris, are apparently unlikely to face charges.
Aug. 14, 2013, 9:49 AM
Aug. 13, 2013, 3:18 PM
- As tipped last week, the DOJ has agreed not to prosecute JPMorgan's (JPM) Bruno Iksil, aka the "London Whale," after he cooperated with the investigation by providing evidence about the internal communications at the bank which took place as his losses mounted, reports the WSJ.
- Additionally, the CFTC has agreed not to move forward with civil charges against Iksil, according to sources.
- The moves suggest Iksil will be a crucial witness as the investigation into two others - one a superior to Iksil, the other an underling - moves forward.
Aug. 13, 2013, 12:05 PM
- Bond insurer Syncora Guarantee's lawsuit accusing Bear Stearns (JPM) of making false and misleading claims in connection with a MBS transaction is tossed out of New York State court on appeal.
- Reversing a lower court ruling, the appeals court finds Syncora bound by its decision to first file a claim in federal court.
Aug. 13, 2013, 4:31 AM
- The Commodity Futures Trading Commission has reportedly subpoenaed Goldman Sachs (GS), JPMorgan (JPM), Glencore Xstrata (GLCNF.PK) and their subsidiaries for documents relating to warehouses they operate for aluminum and other metals.
- The agency has requested information dating back to January 2010; it also wants documents relevant to the companies' relationships with the London Metals Exchange.
- The CFTC's investigation follows allegations that the activities of warehousing companies have artificially boosted the price of metals, particularly aluminum.
- Earlier speculation said the CFTC had sent subpoenas to an unnamed metals warehousing firm.
Aug. 12, 2013, 3:14 AM
- The U.S. attorney's office and the FBI are reportedly investigating JPMorgan (JPM) over the bank's London Whaling loss in a probe that could lead to a fine and a reprimand. Authorities could also force the bank to strengthen its internal controls.
- The probe adds to action from the SEC, as well as possible criminal indictments against two former JPMorgan employees.
- Prosecutors are also looking at whether JPMorgan should have alerted authorities about the suspicions of some staff that Bernard Madoff was running a Ponzi scheme.
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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