Mon, Jan. 5, 4:10 PM
- The bank has agreed to pay about $100M in lawsuits brought by counterparties, market participants, and others who claim damage by supposed efforts to rig the foreign exchange markets, reports the FT.
- Revealed in court filings today and still requiring court approval, the settlement shows JPMorgan's (JPM -3.1%) desire to lay the manner to rest, say the FT's sources. Eleven other banks are also defendants in the suit. Together, the twelve had asked for dismissal in May, and the court has yet to rule on it.
- JPMorgan has already paid $660M to settle global probes of forex markets and still faces investigations by the DOJ and New York's Department of Financial Services.
Mon, Jan. 5, 1:25 PM
- "We view Wells Fargo (WFC -2.7%) as a core bank holding, but shares have reached our price target and we believe sentiment is now overwhelmingly positive after leading returns in 2014 (+21%, #1 among the top 50 banks)," says Baird's David George, who earlier downgraded the stock from Outperform to Neutral.
- Put the money in another bank? Not so quick, says George, suggesting the Fed could tighten later and be less aggressive than most expect, disappointing those hoping for higher rates to boost profits. Other than Wells Fargo, George sees sentiment highest in PNC Financial (PNC -2.7%), SunTrust (STI -3.9%), and U.S. Bancorp (USB -2.2%).
- Asset-sensitive names like Comerica (CMA -3.7%) and Zions (ZION -3.4%) lagged in 2014, but estimates still look to high.
- Top ideas would be Fifth Third (FITB -2.7%), Capital One (COF -2.4%), and JPMorgan (JPM -3%), but George is having a tough time finding value in the sector.
- Previously: Longtime Wells Fargo bull rings the register (Jan. 5)
Mon, Jan. 5, 1:03 PM
- An improving economy and easing of the regulatory burden will be keys for a big move higher in the big banks this year, says Barclays' Jason Goldberg, seeing double-digit percentage gains for the Citigroup (C -2.9%), Bank of America (BAC -3%), JPMorgan (JPM -2.8%), and Wells Fargo (WFC -2.6%).
- His top pick among the group is Citigroup, where the $65 price target suggests upside of more than 20%.
- Goldman has a different take, and sees the regulatory burden as making JPMorgan worth more broken up than together.
Mon, Jan. 5, 10:58 AM
- With size now clearly a "regulatory negative," the debate over whether breaking up JPMorgan (JPM -2.3%) could unlock shareholder value needs to take place, says the team at Goldman Sachs. Goldman's Richard Ramsden figures JPMorgan sells at a 20% "conglomerate discount" to pure-play financial companies.
- Ramsden believes the bank could be broken up into either two or four parts, waving aside the idea of "minor surgery" as resulting in only modest capital relief.
Dec. 25, 2014, 6:33 AM
- JPMorgan's (NYSE:JPM) Asian Infrastructure fund is in advanced talks to partner with Indian carrier SpiceJet's co-founder, Ajay Singh, for a planned $200M investment into the cash-strapped airline.
- JPMorgan and Singh, who have so far invested about 170M rupees in SpiceJet to help it clear dues to oil refiners, plan to finalize the deal in a month’s time.
Dec. 17, 2014, 7:36 AM
- Jefferies yesterday posted a 73% plunge in fixed-income trading revenue for the quarter ended Nov. 30, and a 45% fall in equity-trading revenue. “You’re going to see weaker trading results because of what I’d call bad volatility,” says Charles Peabody, as firms cut back on stock and bond offerings.
- That Q4 trading revenue is going to be a weak one for the likes of JPM, C, BAC, GS, and MS shouldn't be a major surprise as Ciit's Mike Corbat, BofA's Brian Moynihan, and JPM's Marianne Lake said as much when presenting at a financial services conference earlier this month. But the weakness they described is nowhere near what was reported at Jefferies.
- Alongside the weak trading results, Jefferies is also looking to get rid of Bache - its commodities-trading business. "The fact that they are throwing in the towel on this business just a few years in would suggest that maybe that opportunity is not nearly as robust as they thought it would be,” says UBS's Brennan Hawken.
- Previously: Jefferies posts loss, mulling sale of Bache unit (Dec. 16, 2014)
Dec. 16, 2014, 12:14 PM
- Under its $13B 2013 mortgage settlement, JPMorgan (JPM +0.6%) was to provide $4B in consumer aid, and the bank has told the settlement monitor it has completed about $2.25B of that. The monitor, Joseph Smith, says his office needs to validate the calculations before giving JPMorgan credit.
- Thus far, the bank has been credited $862M for aid to more than 46K borrowers. More than 60% of that has gone to new lending, including to those areas hit hardest by the real estate bust, and loans to low-income borrowers. The remaining 40% was for loan forgiveness and forbearance.
Dec. 15, 2014, 4:37 PM| Comment!
Dec. 10, 2014, 11:12 AM
- Speaking at the Goldman Sachs financial services conference, JPMorgan (JPM -1.8%) CFO Marianne Lake sees FICC revenue lower by a "high teens" percentage in Q4.
- 2015 is shaping up to be "respectable," but will bear more resemblance to 2014 than the bank would like, she adds.
- Addressing the latest chatter about boosted capital requirements, Lake says it's "reasonable" to assume capital ratios for the largest banks will go to a total of 11.5% - the 7% common equity requirement necessary for most banks, plus the 4.5% boost for the big lenders.
- At the same conference yesterday:
- Previously: Banks slip as Moynihan warns on trading activity (Dec. 9, 2014)
- Previously: Citigroup taking nearly another $3B in legal charges (Dec. 9, 2014)
Dec. 10, 2014, 3:42 AM
- It has been revealed that JPMorgan (NYSE:JPM) has a $22B capital hole under newly proposed Fed rules, FT reports
- Officials had not intended to release the fact, but rather announced that there was an aggregate shortfall of $21B between eight major banks. However, during an exchange with vice-chairman Stanley Fischer at a recent Fed meeting, it emerged that JPMorgan accounted for the entire deficit.
- The bank will have until 2019 to reach the new buffer.
Dec. 9, 2014, 1:53 PM
Dec. 9, 2014, 11:38 AM
- Even as energy markets are buffeted by unusual volatility, some of Wall Street's biggest banks are ready to write billion-dollar checks to finance Cheniere Energy's (LNG +0.4%) $15.5B Corpus Christi natural gas project on the Gulf coast, CNBC reports.
- The commitments could put banks including JPMorgan Chase (NYSE:JPM), Goldman Sachs (NYSE:GS) and Morgan Stanley (NYSE:MS) on the hook if the market for liquefied natural gas goes south, according to the report.
- The gas terminal, now under development and expected to produce as much as 13.5M tons of liquefied natural gas starting in 2018, is now seeking $11.5B in a seven-year bank credit facility that would depend in part on the issuance of new bonds next year and the year after to repay its debt; private lenders reportedly have provided LNG with an initial $2.5B in funding to construct the terminal.
Dec. 9, 2014, 8:52 AM
- A check of the other major banks premarket amid a global selloff of some note and BofA's Brian Moynihan's warning about sluggish Q4 trading revenue finds JPMorgan (NYSE:JPM) -1.5%, Citigroup (NYSE:C) -1.5%, Wells Fargo (NYSE:WFC) -1.2%, Goldman Sachs (NYSE:GS) -1.7%, and Morgan Stanley (NYSE:MS) -1.5%.
- XLF -1.1%
- ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, IAI, SEF, IYG, FXO, FNCL, FINU, KCE, RWW, RYF, KBWC, FINZ
Dec. 8, 2014, 10:28 AM
- A combination of new regulations and near-zero interest rates has some banks - including JPMorgan (NYSE:JPM), Citigroup (NYSE:C), HSBC, Deutsche Bank (NYSE:DB), and Bank of America (NYSE:BAC) - privately telling larger clients to take their deposits elsewhere or face fees on accounts which have long been free.
- “Ultimately my balances aren’t as profitable for the banks, and that’s going to impact my business,” says an executive with a title insurance company, complaining of sleepless nights amid negotiations with his bankers.
- BNY Mellon (NYSE:BK) has begun charging institutional clients money to park money in euros, and State Street (NYSE:STT) says itwill soon begin doing so.
- Some bankers are advising large clients to break up large deposits across a number of lenders (including smaller banks not subject to the new regulations), and other corporations are going to find themselves needing to build more sophisticated (and riskier) portfolios likely including vehicles like short-term bond funds and uninsured money-market funds.
Dec. 5, 2014, 10:19 AM
- Jamie Dimon has told JPMorgan (JPM +2.4%) staff that post-treatment tests show no signs of cancer, reports Bloomberg.
- Previously: Financial sector leads the way on strong jobs number
Dec. 5, 2014, 10:06 AM
- Among those counting on higher interest rates to boost profits are banks, insurers, and online brokers, and all are outliers to the upside in today's session after a strong November jobs report has rate hike expectations on the rise. The XLF is up 1%.
- TBTFs: Bank of America (BAC +2.1%), Citigroup (C +1.8%), JPMorgan (JPM +2.2%), Wells Fargo (WFC +1.2%)
- Regionals (KRE +1.9%): Regions Financial (RF +2.6%), KeyCorp (KEY +2.3%), Huntington (HBAN +1.5%), BB&T (BBT +1.6%), Zions (ZION +4%)
- Custodials: BNY Mellon (BNY), State Street (STT +1.6%), Northern Trust (NTRS +1.8%)
- Life insurers: MetLife (MET +2.1%), Prudential (PRU +2.5%), Lincoln National (LNC +2.3%)
- Online brokers: Schwab (SCHW +3.8%), E*Trade (ETFC +3%), Ameritrade (AMTD +2.7%)
- Previously: Short end of yield curve on the move after jobs number (Dec. 5, 2014)
- Previously: Bonds and dollar higher, gold slumps after strong jobs report (Dec. 5, 2014)
- ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, KIE, IAT, IAI, SEF, IYG, IAK, FXO, FNCL, KBWB, RKH, QABA, FINU, KRU, RWW, KBWR, RYF, KBWP, KBWI, PSCF, FINZ, KRS
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