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JPMorgan Chase & Co. (JPM)

  • Wed, Mar. 11, 4:44 PM
    • Goldman's Sachs' (NYSE:GS) first score of 5.8% was only marginally ahead of the 5% threshold, but the resubmitted capital plan came in at 6.4%
    • Morgan Stanley (NYSE:MS) was 5.9% on both tests, so one wonders what changed. The company has announced a $3.1B buyback through the end of 2016 Q2 as well as a boost in the quarterly dividend to $0.15 per share from $0.10.
    • JPMorgan (NYSE:JPM) lifted its score from a barely scraping by 5% to 5.5%.
    • There's no word yet on the details of Goldman's or JPMorgan's plans.
    • GS +0.9%, MS +1.8%, JPM +0.1% after hours.
    • Previously: BofA must resubmit capital plan; Deutsche and Santander rejected (March 11)
    • CCAR results
  • Wed, Mar. 11, 3:15 PM
    • The lawsuit - brought by three California ratepayers on behalf of retail power customers in the state - accuses JPMorgan (JPM +0.7%) of violating RICO Act when it sold power from several gas plants between 2010 and 2012.
    • The action comes following the bank's settlement with FERC in 2013 over similar charges in which it paid a $285M fine and $124M in refunds, though without admitting any wrongdoing.
  • Tue, Mar. 10, 10:39 AM
    • "Slowing earnings growth, deterioration in the quality of earnings, loan growth largely limited to low-yielding assets, continuing NIM pressure, loss absorbing capital issuance, and rising loan loss provision costs are some of the headwinds," says SocGen's Murali Gopal, downgrading Wells Fargo (WFC -1.9%) to Sell from Neutral.
    • The stock owes much of its recent move higher to expanding multiples, but Gopal sees little hope for further advance on that front.
    • "With the stock’s performance likely to be a function of earnings growth, and consensus forecasting 3% EPS growth in FY15, we recommend investors Sell the stock at current levels," says Gopal, who remains positive on the TBTFs in general, and suggests investors instead buy Bank of America (BAC -1.8%) and JPMorgan (JPM -1.7%).
  • Mon, Mar. 9, 3:30 PM
    • There's plenty of change going on at Wall Street's investment banks, but the boldest moves at the top are coming from JPMorgan (JPM +1%) write James Fontanella-Khan and Arash Massoudi in the FT. The Bank of Dimon has tapped four 40-somethings to co-head operations in North America and EMEA to lead through a more complex and frenzied M&A environment.
    • Anu Aiyengar, 42 and co-head of North America, recently advised on Russell Investment's $2.7B sale to the LSE.
    • Henry Gosebruch, 42 and co-head of North America, is a JPM lifer, having started as a summer intern in 1994.
    • David Lomer, 40 and co-head EMEA, rose as a rainmaker in the bank's technology, media and telecoms group.
    • Dirk Albersmeier, 45 and co-head of EMEA, recently advised on Deutsche Annington's €3.9B deal to acquire competitor Gagfah.
    | Comment!
  • Fri, Mar. 6, 9:46 AM
    • A turnaround from the action earlier this year - financials (XLF +0.9%) are marching higher in early action as the averages slip, as nervous investors buy back in following the stress test results. Also helping are surging interest rates following the strong jobs number.
    • Looking at a pretty broad screen of bank names, just two - Goldman Sachs and Zions, both of which barely passed the stress test - are lower. Among the others: Bank of America (BAC +3.7%), JPMorgan (JPM +1.1%), U.S. Bancorp (USB +1.6%), Regions FInancial (RF +2.3%), KeyCorp (KEY +2.7%), PNC Financial (PNC +2.3%), BB&T (BBT +2.4%), Fifth Third (FITB +2.2%), Comerica (CMA +3.8%), BNY Mellon (BK +2.9%).
    • Among those starved for higher rates: MetLife (MET +3%), Prudential (PRU +3.3%), Lincoln National (LNC +4.1%), AIG (AIG +1.4%),  Hartford (HIG +2%), E*Trade (ETFC +3.9%), Schwab (SCHW +4.4%), Ameritrade (AMTD +4.3%).
    • Previously: Futures slip after jobs number as yields and dollar soar (March 6)
  • Thu, Mar. 5, 8:28 PM
    • The minimum Tier 1 common capital ratio for banks is 5%, according to the Fed, and here's how the 31 lenders stacked up under the central bank's severely adverse scenario vs. a year ago (h/t: WSJ):
    • Deutshce Bank (NYSE:DB): 34.7%, not tested a year ago
    • DIscover (NYSE:DFS): 13.9% vs. 13.2% a year ago
    • Bank of New York Mellon (NYSE:BK): 12.6% vs. 13.1%
    • American Express (NYSE:AXP): 12.5% vs. 12.1%
    • Northern Trust (NASDAQ:NTRS): 12.3% vs. 11.7%
    • State Street (NYSE:STT): 11.8% vs. 13.3%
    • Citizens Financial (NYSE:CFG): 10.7% vs. 10.7%
    • KeyCorp (NYSE:KEY): 9.9% vs. 9.2%
    • Capital One (NYSE:COF): 9.5% vs. 7.8%
    • PNC Financial (NYSE:PNC): 9.5% vs. 9%
    • Santander Holdings USA (SAN's U.S. unit): 9.4% vs. 7.3%; shares +0.8% after hours
    • BMO Financial (BMO's U.S. unit): 9% vs. 7.6%
    • Comerica (NYSE:CMA): 9% vs. 8.6%
    • Huntington Bancshares (NASDAQ:HBAN): 9% vs. 7.4%
    • HSBC North America (NYSE:HSBC): 8.9% vs. 6.6%
    • U.S. Bancorp (NYSE:USB): 8.5% vs. 8.2%
    • Regions Financial (NYSE:RF): 8.3% vs. 8.9%
    • Citigroup (NYSE:C): 8.2% vs. 7.2%
    • SunTrust (NYSE:STI): 8.2% vs. 8.8%
    • BB&T (NYSE:BBT): 8.1% vs. 8.4%
    • MUFG Americas Holdings (NYSE:MTU): 8% vs. 8.1%
    • Ally Financial (NYSE:ALLY): 7.9% vs. 6.3%
    • Fifth Third Bancorp (NASDAQ:FITB): 7.9% vs. 8.4%
    • Wells Fargo (NYSE:WFC): 7.5% vs. 8.2%
    • M&T Bank (NYSE:MTB): 7.3% vs. 6.2%
    • Bank of America (NYSE:BAC): 7.1% vs. 5.9%; shares +2.1% after hours
    • JPMorgan (NYSE:JPM): 6.5% vs. 6.3%
    • BBVA Compass (NYSE:BBVA): 6.3% vs. 8.5%
    • Goldman Sachs (NYSE:GS): 6.3% vs. 6.9%
    • Morgan Stanley (NYSE:MS): 6.2% vs. 6.1%
    • Zions Bancorp (NASDAQ:ZION): 5.1% vs. 3.6%; shares -1.7% after hours
    • The lenders were also informed today whether their capital return plans would put them below the Fed's 5% threshold, giving them a 6-day window with which to change those requests, if need be. Last year, both BofA and Goldman scaled back their dividend/buyback requests, allowing them to pass the CCAR. This year's CCAR results will be announced on Wednesday.
    • 2015 Stress Test Methodology and Results
  • Thu, Mar. 5, 5:28 AM
    • Bloomberg journalists tried to recreate JPMorgan's (NYSE:JPM) impressive mutual-fund-group performance figures, which it presented at last month's investor day, but were unable to do so.
    • JPM's confusing approach "raises questions about how JPMorgan has come up with a set of numbers describing a key part of its business," the article says.
    • According to the bank’s 2014 presentation, 97% of alternative assets beat their benchmarks for the previous 10 years. In 2015 that figure rose to 100%. Working from their own data on JPM’s alternative assets, Morningstar and Lipper got different numbers. Morningstar said 33% of JPM’s alternative assets beat their benchmarks; Lipper’s figures show that only 14% did.
    • With assets of $443B, JPM is the world’s fastest-growing active mutual fund manager.
  • Wed, Mar. 4, 12:17 PM
    • Anu Aiyengar and Henry Gosebruch have been named co-heads of M&A for North America, while Dirk Albersmeier and David Lomer have been tapped as co-heads of M&A in EMEA, reports the WSJ.
    • "In this time of unprecedented M&A activity, we are making changes to our organization structure to better align our regional M&A resources in support of our client agenda,” say JPMorgan (JPM -0.2%) co-heads of global M&A Hernan Cristerna and Chris Ventresca.
    • The bank currently holds first place in Dealogic's league table for U.S.-announced M&A year-to-date, with 26 deals worth a combined $94B.
    | Comment!
  • Wed, Mar. 4, 11:30 AM
  • Wed, Feb. 25, 12:08 PM
    • "We didn't find the argument overly convincing," say MKM Partners' David Trone and Pankaj Chitrakar, commenting on JPMorgan's (JPM +0.5%) investor day presentations yesterday at which management insisted a break-up of the bank isn't advisable.
    • "We view this is a symbolic step in the process whereby pressure from the Street builds and management eventually relents," says the duo. "It is only natural that management would be in denial at this junction," particularly so soon after the Bear Stearns and WAMU purchases.
    • Calling yesterday's investor day "one of the best in recent years," Deutsche's Matt O'Connor says management did a good job of keeping things simple: 1) Build and maintain leading client franchises across all businesses when many peers are pulling back; 2) Operate with "fortress" principles; 3) Maximize shareholder value via significant operating leverage and capital returns.
    • O'Connor notes management's 15% ROTCE target (some had feared a cut to 14% or lower).
    • Previous investor day coverage
  • Tue, Feb. 24, 3:50 PM
    • No Goldman analyst is going to force JPMorgan (JPM +2.7%) out of investment banking, says Jamie Dimon, wrapping up his bank's investor day. Dimon is referring to a report from Goldman Sachs earlier this year which suggested JPMorgan is trading at a 20% "conglomerate discount," a spread which could be narrowed by breaking the bank up into two or four parts.
    • JPMorgan's management's unwavering view that bigger is better has been a recurring theme throughout today's presentations. JPMorgan may be big, says Dimon, but it's no conglomerate.
    • Dimon does however acknowledge the regulatory headwinds to getting bigger, and any growth will surely be organic.
    • "P/E ratio has always been wrong, just like the cost of equity has always been wrong, and the market is always wrong," says Dimon, not too worried about his bank's supposed premium valuation compared to the other TBTFs.
    • "I know it's only 3:30, but you are welcome to start drinking," he says in conclusion.
    • Investor day webcast and presentations
  • Tue, Feb. 24, 12:55 PM
    • JPMorgan's (JPM +2.6%) corporate & Investment bank is set to post year-over-year gains in trading revenue, says unit CEO Daniel Pinto, presenting at the bank's investor day.
    • Webcast and presentations
    • The forecast is particularly notable because investment bankers for nearly the last year have been using such stages to lower expectations for FICC revenue. Either things are getting better or banks now are beginning to go up against really easy comparisons.
    • Earlier this month, Goldman CEO Lloyd Blankfein expressed similar optimism about his bank's Q1 results.
    • Previously: JPMorgan investor day: Bigger is better (Feb. 24)
    | 1 Comment
  • Tue, Feb. 24, 11:41 AM
    • "Scale has always defined the winner in banking," says CFO Marianne Lake, who spent a sizable portion of her presentation time explaining why JPMorgan (JPM +2.5%) should not be broken up. The bank, she says, generates $18B per year in synergies as one unit - $15B from added revenues from sales across different units, and $3B in cost savings.
    • Investor day webcast and presentations
    • Of course, this doesn't preclude the Bank of Dimon from shrinking some of its businesses in order to ease capital requirements, with case-in-point today's announcement to reduce certain institutional deposits by up to $100B by year-end. The move comes as perverse new federal rules basically penalize banks for holding excess deposits over worry about their quick exit during another financial crisis.
    • Investors are liking the news, bidding up JPMorgan today more than any of the other TBTF banks.
    • Previously: JPMorgan to announce deposit fees for big clients (Feb. 24)
  • Tue, Feb. 24, 3:05 AM
    • JPMorgan (NYSE:JPM) is preparing to charge an array of financial firms, including hedge funds, private-equity firms and foreign banks, for some deposits, citing new rules that make holding money for the clients too costly.
    • Certain deposits are less profitable to handle than they used to be due to new federal rules that can penalize banks for holding deposits viewed as prone to fleeing during a crisis or a stressed environment, sources told WSJ.
    • Specifics are likely to be unveiled today at JPMorgan's annual strategy outlook with investors.
    • JPM -0.2% AH
    | 1 Comment
  • Tue, Feb. 24, 1:56 AM
    • U.S. officials are probing at least 10 major banks for the possible rigging of precious-metals markets, even though European regulators shelved a similar investigation after finding no evidence of wrongdoing, WSJ reports.
    • The DOJ is scrutinizing the price-setting process for gold, silver, platinum and palladium in London, while the Commodity Futures Trading Commission has opened a civil investigation.
    • Banks under scrutiny: HSBC, BNS, BCS, CS, DB, GS, JPM, OTCPK:SCGLY, OTCPK:SGBLY, UBS
  • Fri, Feb. 20, 4:48 AM
    • Squeezed by new capital and risk rules and tough markets, Wall Street is taking the ax to its workforce, a report by London research firm Coalition shows.
    • The number of investment bankers, traders, salespeople and research analysts at the world’s largest banks has fallen 20% globally since its recent peak in 2010.
    • While job cuts on the front end have become standard, firms have been increasing their back-office hiring to beef up controls in areas ranging from compliance to risk.
    • Related tickers: BAC, BCS, OTCQX:BNPQY, C, CS, DB, GS, JPM, MS, UBS
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Company Description
JPMorgan Chase & Co is a financial services firm and a banking institution. its segments are Consumer & Community Banking, Corporate & Investment Bank, Commercial Banking, and Asset Management.
Sector: Financial
Country: United States