Fri, Apr. 24, 9:15 AM
- Comcast (NASDAQ:CMCSA) is trading up 1.3% premarket, and Time Warner Cable (NYSE:TWC) is 0.8% higher as well, after confirmation that their $45B merger deal is dead.
- In statements by the Justice Dept. and FCC thanking each other for their cooperation, it's clear that FCC Chairman Tom Wheeler was against the deal, which would have made agency approval a very long shot.
- It's also clear why Wheeler was opposed: It's about broadband, not cable, and protecting the burgeoning streaming video market. "The proposed merger would have posed an unacceptable risk to competition and innovation especially given the growing importance of high-speed broadband to online video and innovative new services."
- While Comcast doesn't pay a breakup fee with the deal's end, that doesn't mean everyone walks away cheaply: Advisers including bankers and lawyers will lose out on $380M in fees, chiefly Goldman Sachs (NYSE:GS), banker for Charter Communications (NASDAQ:CHTR). J.P. Morgan Chase (NYSE:JPM) will drop from second to third in the league tables. As a mitigating factor, more deals are likely on the way, though.
- Other sector players premarket: AT&T -0.3%; Verizon -0.2%.
Thu, Apr. 23, 4:05 PM
- Not only will the deal cancellation cost JPMorgan (NYSE:JPM) and others hundreds of millions in fees, but the bank will lose its number two spot in 2014's M&A ranking to Bank of America.
- As Maureen Farrell points out, M&A rankings are about more than bragging rights. Firms tout their rankings in marketing materials and habitually promote performance. Banks and law firms will fight for spots on deals simply for the chance to boost their ranking.
- Previously: Bloomberg: Comcast dropping TWC merger plans (April 23)
Tue, Apr. 21, 1:52 AM
- The U.S. Department of Justice is now pushing for five banks, including JPMorgan (NYSE:JPM), Barclays (NYSE:BCS), Citigroup (NYSE:C), RBS (NYSE:RBS) and UBS (NYSE:UBS), to reach a joint mega settlement to allegations they manipulated the foreign exchange markets.
- The deal would see some institutions pay about $1B each and is scheduled for mid-May, FT reports.
- Last November, the banks (except Barclays) agreed to pay $4.3B to authorities in the U.S., U.K. and Switzerland in the first settlements announced in the forex investigation, although the DOJ was not included on that ticket.
Tue, Apr. 14, 9:14 AM
- "Dialog with the Fed is getting better, but I don't think it is now or will ever be a transparent process," says JPMorgan (NYSE:JPM) CFO Marianne Lake on the earnings call. "Maybe by design," she adds.
- Presentation slides
- Asked if the bank has any interest on buying any of the assets of GE Capital, Lake demurs, telling listeners JPMorgan is happy to advise GE on the sales, but won't comment on what it might buy.
- Speaking to reporters before the call, Lake is optimistic this quarter's strong trading business results is the start of a trend, though while Q2 activity is looking strong so far, it will be slightly than the first quarter.
- Shares +1.3% premarket.
- Previously: JPMorgan Chase beats by $0.18, beats on revenue (April 14)
- Previously: "Robust" activity in FICC leads strong quarter at JPMorgan (April 14)
Tue, Apr. 14, 7:16 AM
Tue, Apr. 14, 7:15 AM
- Q1 net income of $5.914B or $1.45 per share vs. $5.269B or $1.28 one year ago. ROTCE of 14% vs. 13%. Q1 results include legal items footing to $0.13 per share.
- Consumer & Community Banking net income of $2.219B vs. $1.981B one year ago on revenue of $10.704B vs. $10.534B. Noninterest expense of $6.19B vs. $6.437B, thanks to lower mortgage banking and consumer & business banking costs.
- Corporate & Investment Bank net income of $2.537B vs. $2.125B a year ago on revenue of $9.582B vs. $8.842B. Markets & Investor Services revenue of $6.5B up 7% Y/Y thanks to "robust" client activity in FICC.
- Commercial Banking net income of $598M vs. $594M a year ago on revenue of $1.742B vs. $1.678B.
- Asset Management net income of $502M vs. $454M a year ago on revenue of $3.005B vs. $2.8B.
- Tangible book value per share of $45.45, up 9% Y/Y. Basel III CET ratio of 10.6%.
- Conference call at 8:30 ET.
- JPM +0.7% premarket.
- Previously: JPMorgan Chase beats by $0.18, beats on revenue (April 14)
Tue, Apr. 14, 7:01 AM
Mon, Apr. 13, 10:02 PM
- The scorecard since the Bank One/JPMorgan (NYSE:JPM) merger in 2004 - with Jamie Dimon taking the helm of the merged company - is a remarkable one, writes The Brooklyn Investor.
- Dimon has grown tangible book value per share at a rate of 14.1% annually. As comparison (though it isn't a perfect one), BVPS at Berkshire Hathaway (BRK.A, BRK.B) and Markel (NYSE:MKL) - hall of fame compounders - has grown by 10.1% and 12.5% respectively per year over the same time frame. Keep in mind that JPMorgan turned in this record during the period that includes the financial crisis.
- As for stock performance, someone owning Bank One when Dimon became CEO in 2000 and holding through the merger would have had a total return of 10.4% annually since - 170 basis points per year better than Berkshire Hathaway. The S&P Financials Index over that time has returned just 2.2% per year, and the S&P 500 only 4%.
- As for Dimon's defense against those arguing for a break-up of JPMorgan, BI's buying it, excerpting the CEO: "Our long-term view means that we do not manage to temporary P/E rations - the tail should not wag the dog."
- And finally, BI notes Jamie Dimon comes pretty cheap - the average percentage of profits paid to the JPMorgan CEO over the three years ended in 2013 was 0.09%, the lowest among the Too Big To Fail U.S. banks.
Mon, Apr. 13, 5:30 PM
Fri, Apr. 10, 11:56 AM
- "I think their ability to provide a full breadth of services, whether that be M&A advisory or capital markets and debt, in a seamless environment is important," says Actavis CEO Brent Saunders, whose firm has done a lot of business with JPMorgan (NYSE:JPM) over the years, and which just completed the Allergan purchase with the bank's assistance.
- "I can tell you that in terms of getting the Allergan deal done, which was fairly difficult from an execution perspective – it was quite complex – that capability was instrumental to us being able to achieve our objectives in the deal.”
- JPMorgan was the sole advisor to Actavis on the $72.7B deal and also worked as lead arranger on a $36.4B bridge credit facility and new revolving facilities worth $5B.
- Saunders: “I can’t imagine doing a deal like that with seven or eight firms – I’m not sure we could have got a deal of that complexity or size done without a full-service investment bank.”
- Source: WSJ
Fri, Apr. 10, 11:26 AM
- Credit Suisse adds four companies to its U.S. Focus List, led by Devon Energy (NYSE:DVN), which it sees as a pure-play energy stock that investors can feel comfortable holding for the long-term and is not pegged to the oil markets.
- The firm also likes DVN's defensive valuation, top quartile oil growth profile and further accretion possibilities from the EnLink Midstream assets; its $80 stock price target is among the Street's best outlook.
- Credit Suisse cites another energy choice, Marathon Oil (NYSE:MRO), for its higher multiple businesses, and believes upstream cash margins have room to move up as shale production increases and oil prices recover.
- Also added to the U.S. Focus List: JPMorgan Chase (NYSE:JPM), Dunkin' Brands (NASDAQ:DNKN).
- Earlier: Dunkin' Brands tapped by Credit Suisse for new highs
Thu, Apr. 9, 7:48 AM
- Legal and regulatory costs have weighed on the bank's stock price, says JPMorgan (NYSE:JPM) CEO Jamie Dimon in his annual letter to shareholders, but the cloud is lifting. While there's still some uncertainty over, for instance, the forex investigations, things should settle down by next year, he says.
- Dimon laments that he spends more time talking to analysts and investors about regulatory issues than he does about the business of banking.
- While praising the idea of the Fed stress tests, he notes the exams assume dramatic moves taking place all in one day, with very little recovery in values. The full bank plan -such as dramatic expense cuts and cuts in the dividend and buyback - isn't fully reflected in the Fed models. He also reminds, JPMorgan made a profit in each quarter throughout the financial crisis.
Wed, Apr. 8, 12:25 PM
- After racking up more than $36B in legal fines since the financial crisis, JPMorgan (JPM +0.5%) is rolling out a surveillance program designed to detect rogue employees before they go off the tracks.
- Dozens of inputs, including whether employees skip compliance classes, violate personal trading limits, or break market-risk limits, will be fed into the program, says Sally Dewar, head of regulatory affairs for Europe, who is leading the effort.
- The program is currently being tested in the trading business before being rolled out to the investment banking and asset management divisions by 2016. The bank has hired 2.5K compliance workers and spent more than $730M improving operations over the past three years, and job postings show it'll continue to be an area of growth.
- Source: Bloomberg
Tue, Apr. 7, 7:35 AM
Thu, Apr. 2, 3:24 AM
- JPMorgan (NYSE:JPM) is on track to meet its mandate to provide billions of dollars in consumer relief to struggling homeowners as part of a settlement it reached over shoddy mortgage bonds it sold before the financial crisis.
- Joseph Smith, the monitor overseeing the settlement, has so far credited Chase with $2.2B out of the $4B it is required to provide to consumers by 2017.
- Chase must also pay $9B in cash, totaling a $13B settlement.
Wed, Apr. 1, 4:33 PM
- Looking for some kind of growth wherever they can find it, banks are about to get their wish as Fair Isaac is set to launch a new credit scoring metric which should expand by tens of millions the field of those eligible to get credit.
- The new score will pull payment histories for things like utilities to calculate credit scores for consumers who might otherwise not have one. Other things - like how often someone changes address - will be used to help calculate a score.
- FICO and 10 unnamed credit card issuers have been testing the new score since November, and Fair Isaac intends to roll things out nationwide by year-end. Right now, about 15M of the 53M previously unscorable Americans can be scored using the new system.
- Source: WSJ
- Among those of interest: WFC, C, BAC, JPM, COF, DFS, AXP
- ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, IAT, SEF, IYG, FXO, FNCL, KBWB, QABA, FINU, KRU, RWW, KBWR, RYF, FINZ, KRS
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