Thu, Mar. 19, 3:35 PM
- Executives at JPMorgan (JPM -0.8%) are bracing for layoffs in the investment banking and commercial banking units of up to 5-7% of the workforce, tweets out Charlie Gasparino.
- The trading slowdown is looking less cyclical and more secular in nature, and the evaporation in profit at Jefferies - which just reported its quarter through Feb. 28 - could bode ill for Wall Street's major investment banks which report their Q1s next month.
- Previously: Poor results at Jefferies sinks Leucadia (March 17)
Thu, Mar. 19, 3:06 PM
- A federal judge accepted a motion by the DOJ to toss a lawsuit brought by the non-profit Better Markets which sought to block the $13B settlement with JPMorgan (JPM -0.7%). The group - founded only in 2010 - lacks standing to sue, says the judge.
- "Such backroom deals should not be allowed in a democracy worthy of its name. We will be carefully evaluating the court's opinion before determining our next steps," says the head of the group.
Tue, Mar. 17, 4:54 PM
- Alongside the declaration of its $0.40 per share quarterly dividend, JPMorgan (NYSE:JPM) reiterates its intention to boost the payout to $0.44 for the dividend payable on July 31.
- The board also makes formal its intent to repurchase up to $6.4B in common stock between April 1 of this year and June 30 of 2016.
- Source: Press Release
- Previously: JPMorgan boosts dividend by 10% after CCAR (March 11)
- Shares -0.1% after hours.
Tue, Mar. 17, 4:37 PM
Tue, Mar. 17, 4:12 PM| 10 Comments
Tue, Mar. 17, 11:10 AM
- A possible harbinger of things to come next month when the big banks report Q1 earnings, profits at Jefferies plunged in FQ1 (ended Feb. 28), with FICC, capital markets, and investment banking particularly weak.
- Previously: Poor results at Jefferies sinks Leucadia (March 17)
- Jefferies parent Leucadia is lower by 3.7%. Goldman Sachs (GS -1.1%), Morgan Stanley (MS -0.9%), JPMorgan (JPM -1.2%), Citigroup (C -0.1%), Bank of America (BAC -0.8%).
- ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, IAI, SEF, IYG, FXO, FNCL, FINU, KCE, RWW, RYF, KBWC, FINZ
Mon, Mar. 16, 3:41 AM
- Federal authorities investigating last summer's data breach at JPMorgan (NYSE:JPM), which exposed the contact information of 83M customers, are increasingly confident that a criminal case will be filed against the hackers in the coming months, sources told the NYT.
- Officials believe that several of the suspects are "gettable," meaning that they live in a country with which the U.S. has an extradition treaty. That would exclude countries like Russia.
- Previously: U.S. officials rule out Russia as JPMorgan cyber attack culprit (Oct. 21 2014)
- Previously: 83M accounts exposed in JPMorgan data breach (Oct. 03 2014)
Fri, Mar. 13, 4:09 PM
- It's looking like $1B is the price the DOJ wants from banks to make the forex manipulation probe go away, according to Bloomberg. Banks, however, are finally starting to feel their oats and pushing back a bit more than in the mortgage probes - the final penalty could be lower, according to sources.
- Among the lenders discussing settlements: Barclays (NYSE:BCS), Citigroup (NYSE:C), JPMorgan (NYSE:JPM), RBS, and UBS. The government is also readying cases against individuals.
- In the global investigations, banks have already agreed to pay regulators about $4.3B.
Thu, Mar. 12, 12:47 PM
- Citigroup's (C +2.7%) $7.8B in buybacks was 10% higher than estimated by MKM analyst David Trone. Combined with the nickel dividend, that's total shareholder returns of $8.4B vs. his $7B expectation.
- Bank of America (BAC -1%) - though given just conditional approval - is set for $4B in buybacks and a nickel dividend. That's a total return of $6.1B vs. Trone's $3.1B estimate. Trone notes the bank can proceed with its buyback prior to resubmitting plans.
- JPMorgan's (JPM +1%) $6.4B buyback was shy of Trone's $7B estimate, but the 10% dividend increase was better than forecast. The total capital return of $12.9B vs. his $13.2B forecast is a "marginal negative."
- The dividend hike to $0.65 at Goldman (GS +2.1%) beat Trone's expectation of $0.62. As for the buyback, Goldman's policy of not disclosing the amount remains in place.
- Morgan Stanley's (MS +4.5%) capital return of $4.3B is more than double Trone's $1.9B estimate.
- Source: Benzinga
Wed, Mar. 11, 5:07 PM
- After passing the CCAR with its resubmitted capital plan (the first submission ended up too close to the 5% minimum capital threshold), JPMorgan (NYSE:JPM) announces its intention to boost the quarterly dividend to $0.44 per share from $0.40, effective Q2. The buyback will be for up to $6.4B of stock between through the end of 2016 Q2.
- Source: Press Release
- Shares -0.6% after hours
- Previously: More CCAR: Goldman, Morgan Stanley, and JPMorgan pass after resubmissions (March 11)
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.
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)
- ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, KIE, IAT, IAI, SEF, IYG, IAK, FXO, FNCL, KBWB, QABA, FINU, KCE, KRU, RWW, KBWR, RYF, KBWP, KBWI, PSCF, KBWC, FINZ, KRS
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.
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