Tue, Apr. 5, 4:42 AM
- Banks are paying more attention to large cash transfers that could be a sign of money laundering or other shady activity.
- JPMorgan Chase (NYSE:JPM) has now capped ATM withdrawals at $1,000 per card daily for noncustomers across its 18K locations nationwide.
- However, the move doesn't affect the bank's own customers, whose maximum daily withdrawals are set depending on the client's account type.
Mon, Apr. 4, 7:28 AM
- March monthly performance was: +4.86%
- 52-week performance vs. the S&P 500 is: -9%
- $0.04 in dividends were paid in March
- Top 10 Holdings as of 12/31/2015: JPMorgan Chase & Co (JPM): 3.18%, Citigroup Inc (C): 3.13%, General Electric Co (GE): 2.46%, US Treasury Note 1.625%, Bank of America Corporation (BAC): 1.94%, Morgan Stanley (MS): 1.58%, US Treasury Note 2.25%, Carnival Corp (CCL): 1.3%, PNC Financial Services Group Inc (PNC): 1.26%, Citizens Financial Group Inc (CFG): 1.26%
Mon, Apr. 4, 3:51 AM
- The SEC is examining alleged policy breaches that prompted JPMorgan's (NYSE:JPM) U.S. head of government-bond trading and another employee to leave the firm this year, FT reports.
- Andy Lombara and the other trader were "permitted to resign" in January following a disagreement with the bank's valuation committee over the amount of reserves taken for certain Treasury trades known as strips.
- Industry watchdog FINRA has already been looking into the traders' termination.
Thu, Mar. 31, 12:24 PM
- With everybody expecting continued capital markets weakness and additional energy-related loan loss reserve builds, it may not take much positive news - better than hoped top line growth, efficiency gains, limited credit deterioration - to send bank stocks higher, say Credit Suisse's Susan Katzke and team.
- There's also the chance of numbers dampening sentiment even further, they say, as perhaps results turn out even worse than the current low expectations.
- The team continues to favor Bank of America (NYSE:BAC), Citigroup (NYSE:C), JPMorgan (NYSE:JPM), Goldman Sachs (NYSE:GS), and Wells Fargo (NYSE:WFC) among the large caps.
- Now read: Bank Of America: To Buy Or Not To Buy (March 31)
Tue, Mar. 29, 11:40 AM
- Markets may be uncertain, but the management team at JPMorgan's (NYSE:JPM) corporate and investment bank is focused on controlling what it can - cutting costs and optimizing capital - says Deutsche Bank's Matt O'Connor, who met with the group earlier this month.
- While management didn't update any trading or investment banking advice during the meeting, O'Connor gets the sense that activity levels have improved this month. He continues to rate the bank a Buy with $70 price target.
- via WSJ's Moneybeat
Sat, Mar. 26, 8:26 AM
- Already arrived or coming to a hardware store near you on the East Coast is the TD Bank (NYSE:TD) tour bus equipped with iPads, where homeowners can start the application process on a home-equity line of credit.
- With the mortgage origination market sluggish, banks are betting on growth with HELOCs - particularly as homeowners hold onto homes for longer-than-expected and rebounding home prices allow some equity with which to borrow on.
- HELOCs last year totaled more than $156B, the largest amount since 2007, according to CoreLogic. That's up 24% from 2014 and 138% since the 2010 bottom (during the boom, $300B and up was the norm). The average line extended of $119,790 was a record (on data going back to 2002).
- JPMorgan (NYSE:JPM) and PNC Financial (NYSE:PNC) are also among those making the push, trying to convince customers that borrowing on their home for that dream kitchen or junior's education makes good sense.
- “Having the HELOC means we can use the money in savings for reserves and a vacation to go visit our kids,” says one satisfied customer.
Thu, Mar. 24, 7:35 AM
- At its height just last week, the bank's aluminum holdings would have been enough to cover 40 years of Coca-Cola's U.K. demand - a source of some discontent among London's tight-knit metal market.
- According to exchange data, JPMorgan (NYSE:JPM) has since cut its position, and now holds 30-40% of the aluminum in the LME system vs. more than 50% a week ago. While a stake of this size is not against exchange rules, some brokers are blaming it for pushing up the price of near-term contracts even with a massive overhang of supply.
- The bank says it trades metals only on behalf of clients (it sold its physical commodities business more than a year ago). Traders say JPMorgan is able to get the metal cheaper than it would on the spot market by pressuring those on the other side of its trade to deliver aluminum rather than roll their contracts.
Tue, Mar. 22, 12:33 PM
- Return on average common equity (ROACE) is what determines the valuation of large, mature banks, says RBC's Gerard Cassidy, and those banks that cannot earn their cost of equity capital - estimated at 9-10% through the cycle - ought to consider alternative strategies, including breaking up.
- The key here is interest rates, and should they remain at these levels for a prolonged period, reaching targeted ROACE will be difficult for all banks, particularly for Bank of America (NYSE:BAC) and Citigroup (NYSE:C).
- While a sum-of-the-parts analysis indicates value could be unlocked, the cost of doing so could be prohibitive, says Cassidy.
- Long-term investors planning on holding through the cycle are better off with Wells Fargo (NYSE:WFC) and JPMorgan (NYSE:JPM), but active investors managing their portfolios more aggressively might consider BofA and Citi.
Thu, Mar. 17, 5:14 PM
- JPMorgan (NYSE:JPM) is adding $1.88B to its buyback authorization, after having approved $6.4B in buybacks last year. The new funds are good for repurchasing 0.9% of shares at current levels.
- JPM carried out $1B worth of net repurchases in Q4, and $4.5B over the whole of 2015. Shares are up 0.7% after hours to $59.13.
Thu, Mar. 17, 2:46 AM
- Shareholders of JPMorgan (NYSE:JPM) and Citigroup (NYSE:C) will get to vote later this year on one of the most popular questions on the campaign trail: Should the banks break up into smaller pieces?
- While the question will be included in the banks' proxy filings, analysts have said it is highly unlikely that shareholders will support the bid.
- A similar proposal at Bank of America last year only gained about 4% of the votes.
Tue, Mar. 15, 4:56 PM
Tue, Mar. 15, 1:14 PM
- In what would its first such deal since the financial crisis, JPMorgan (NYSE:JPM) is looking to sell $1.9B in MBS, with most of the credit risk passed on to the buyers, as the bank would keep the safest tranches for itself and sell the riskier parts to investors searching for yield.
- Financial institutions issued $61.6B of private mortgage bonds last year vs. $1.19T issued at the peak of the bubble in 2005.
- This particular deal is a "house transaction" in which the MBS are entirely backed by mortgages (6K-plus) owned by the bank. While JPMorgan could have unloaded the paper to the GSEs (OTCQB:FNMA, OTCQB:FMCC), it clearly thinks it can do better by selling to private investors and/or holding on to some of it.
- Source: WSJ
Tue, Mar. 15, 8:45 AM
- "Our overall Q1 results reflect an exceptionally volatile and turbulent market environment during our first fiscal quarter," says Jefferies (NYSE:LUK) CEO Richard Handler. "A quiet December was followed by an extremely challenging January and first few weeks of February."
- The investment bank posted a loss of $166.8M in Q1 vs. a profit of $12.9M a year ago. Revenue of $299M fell a full 49%, led by an 82% plunge in trading revenue to $58.8M. Of this, fixed-income revenue fell to $56.8M from $126M. Equity trading revenue fell to just $1.7M from $203.5M thanks to markdowns on two equity block trades.
- Good times ahead: Not only have markets stabilized, says management, they've "aggressively snapped back" in the early part of Q2.
- Coming one month ahead of the rest of the Wall Street banks, Jefferies results are often seen as a bellwether of what to expect. It sounds like Goldman (NYSE:GS), Morgan Stanley (NYSE:MS), Bank of America (NYSE:BAC), CItigroup (NYSE:C), and JPMorgan (NYSE:JPM) have the month of March to make up for what was a very lame start to the quarter.
- ETFs: IAI, KCE, KBWC
Fri, Mar. 11, 12:49 PM
- While the big Wall Street banks are struggling with slides in fixed-income revenues, business is booming at BlackRock (NYSE:BLK) and other ETF providers offering credit-related products.
- The banks, writes Lisa Abramowicz, want some of that business back.
- The issue for banks are new regulatory and capital rules which make it harder to hold big inventories are paper investors want to trade. Meanwhile, the ease of moving in and out of vehicles like BlackRock's $25B IG bond fund (NYSEARCA:LQD) or its $16B junk-bond fund (NYSEARCA:HYG) have led to surging volumes, even as the individual securities underlying those ETFs are more difficult to trade.
- Banks are responding with the total-return swap in which an investor pays a fee to a counterparty who promises delivery of the total gain on a basket of certain debt. These instruments are not only quickly traded without having to deal with the underlying securities, but are pegged to some of the same indexes as the biggest credit ETFs. Citigroup (NYSE:C) just became the eight dealer in these derivatives (joining GS, BAC, JPM, MS, CS, DB and OTCQX:BNPQY), which are being pitched by banks as an alternative to ETFs.
Fri, Mar. 11, 8:06 AM
- JPMorgan's (NYSE:JPM) emerging-market credit team is shrinking amid rising volatility this year as bank firings combine with defections.
- Unlike Bank of America and Goldman Sachs - which do annual cullings of staff - JPMorgan tends to make cuts less regularly and on a smaller scale.
- Among those who have left of late are Robert Milam, global head of the emerging-market corporate and sovereign credit group, and Peter Siedem, a managing director in distressed-credit sales. There's also a group of emerging-market bond traders who have defected to Nomura.
- Source: Bloomberg
Thu, Mar. 3, 7:27 AM
- Meeting with Jefferies' Ken Usdin, JPMorgan (NYSE:JPM) CEO Jamie Dimon doesn't see a U.S. recession as a likely outcome, but instead a "profits recession" led by the energy sector. Consumer trends remain positive, says Dimon, noting proprietary data showing gasoline-related savings are being spent.
- The bank's conservative energy provisioning should more than cover losses, says Dimon, reminding the $1.5B in potential additional reserves talked about at investor day assumes $25 oil for 18 months.
- As for revenue, the headwinds remain tough, but hopefully short term. He's hoping capital markets activity thaws and that an improving rates environment will boost net interest income.
- Source: StreetInsider
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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