Dec. 2, 2014, 3:42 PM
- "Our concern is that the market has become complacent on the setting of the SIFI surcharge for the mega banks, which means there may be surprise at just how onerous the surcharge could be for JPMorgan (NYSE:JPM), Citigroup (NYSE:C), Bank of America (NYSE:BAC), Wells Fargo (NYSE:WFC), Goldman Sachs (NYSE:GS) and Morgan Stanley (NYSE:MS)," writes Guggenheim's Jaret Seiberg.
- The Fed is expected to announce the capital surcharge on December 9.
- Previously: U.S. banks to be hit with tougher capital rule
Nov. 17, 2014, 8:05 AM
- Dag Skattum spent more than two decades at JPMorgan (NYSE:JPM), eventually rising to co-head of global M&A in 2006, before exiting along with the boom in 2007. After six years at P-E firm TPG, he's returning to the bank as vice-chairman of EMEA. Among his roles will be leading a strategic advisory council that will help mentor JPMorgan's future dealmaking stars.
- It's the latest in a series of European hires for JPMorgan which is looking to overtake Deutsche Bank as #1 in investment banking fee rankings for the region.
Nov. 15, 2014, 5:00 PM
- JPMorgan (NYSE:JPM) has settled a lawsuit by Texas mineral-rights owners who accused the bank of cheating them of $681M in compensation for drilling rights in the Eagle Ford Shale.
- The case went to trial Nov. 12 after deal talks stalled.
- The jury has now been excused. The Trust's lawyer believes "a sufficient number of beneficiaries" will now sign the settlement.
- Source: Bloomberg
Nov. 13, 2014, 10:17 AM
- Real sweethearts if you believe the reports, the likes of JPMorgan (NYSE:JPM), Bank of America (NYSE:BAC), Citigroup (NYSE:C), and Synchrony Financial (NYSE:SYF) are being investigated by the Feds for still going after borrowers after their debt has been legally discharged in a bankruptcy.
- Paying little attention to such court-ordered discharges, the banks reportedly are keeping the debt alive on credit reports, more or less attempting to force borrowers to pay on bills which they no longer owe.
- The issue, say sources, is the way banks report to credit agencies. Once a debt is voided through bankruptcy, creditors must update credit reports showing that debt is cleared. Banks, however, routinely fail to do so, instead leaving notations of "past due" or "charged off." A clerical mistake would be one thing, but, according to a number of bankruptcy judges,, banks refuse to make corrections unless the borrower pays.
- The banks contend they are complying with all federal laws in their collection and sale of debt. Class-action suits have also been filed and the banks are trying to have them thrown out, arguing its third-party debt buyers who are in control.
Nov. 12, 2014, 10:32 AM
- In what appears to be in addition to the already-announced global $3.4B fine for banks over forex manipulation, the OCC announces $950M in penalties against Bank of America (BAC -0.6%), JPMorgan (JPM -1.1%), and Citigroup (C -0.7%) for "unsafe or unsound" practices related to their forex trading operations.
- BofA will pay $250M, JPM $350M, and Citi $350M.
- Previously: Global banks fined $3.4B in forex probe
Nov. 12, 2014, 2:24 AM
- Global regulators have fined five major banks, including UBS (NYSE:UBS), HSBC (NYSE:HSBC), Citigroup (NYSE:C), Royal Bank of Scotland (NYSE:RBS) and JPMorgan (NYSE:JPM) a total of $3.4B over allegations of price fixing and manipulating benchmarks in the $5T-a-day foreign exchange market.
- The penalties were imposed by Britain's Financial Services Authority, the U.S. Commodity Futures Trading Commission and Swiss regulator FINMA.
- Barclays (NYSE:BCS) had been expected to be part of the settlement but the FCA said its investigation into the U.K. bank was continuing.
Nov. 11, 2014, 4:47 PM
- "The exchanges (apparently ICE's NYSE and NDAQ) who have a hand in this and seek to benefit from the onerous version of a trade-at basically put the screws to us," says Michael Masone, legal counsel for equities at Citigroup (NYSE:C), speaking at a SIFMA-sponsored conference.
- At issue is a SEC pilot program meant to boost trading in smaller-cap names. One of the provisions - the so-called "trade-at" rule - is a stealth attempt at hurting brokerages which run private trading systems (dark pools), said both JPMorgan (NYSE:JPM) and Citi at the conference.
- The one-year program - if approved (the SEC began seeking public comment this month) - would begin next year and widen the minimum tick at which bids and asks are quoted on exchanges to more than a penny. The plan would create four groups of companies with market caps of less than $5B. One segment would require quotes in increments of a nickel or more, and another will require both quotes and trades to be in five-cent steps. In a third group, trading will be discouraged in dark pools. A fourth group would trade normally.
- Opposition has been pretty fierce - even within the SEC - but the agency for now has decided to move forward anyway.
Nov. 11, 2014, 3:00 PM
- "Capital allocation decisions are probably getting the most airtime right now," says Chris Ventresca, global co-head of M&A at JPMorgan (NYSE:JPM), after being asked what's being talked about in corporate boardrooms at the moment.
- An optimistic lot, M&A bankers have for several years predicted an M&A boom in the face of continued lackluster action. This year though, the gap between bankers' pipe dreams and reality is perhaps the narrowest since the financial crisis, writes the WSJ's Maureen Farrell, and Ventresca expects the elevated level to continue.
- For buyers, says Ventresca, there's a disconnect between their ability to drive growth and what shareholders/markets expect, so acquisitions are a key tool. And sellers are more receptive because a multi-year bull market means they're not selling at anywhere near the bottom.
Nov. 11, 2014, 9:47 AM| Comment!
Nov. 10, 2014, 3:39 PM
- The lucrative prepaid card business may already getting less so thanks to the entrance of gorillas like JPMorgan (NYSE:JPM) and American Express (NYSE:AXP) into the industry, but alongside that threat is the CFPB.
- Unable to cap fees, the fast-expanding D.C. agency is set this week to propose new rules mandating clearer disclosure of fees, and to make it easier for consumers to compare across cards.
- “We’re generally in compliance with what we expect the regulation to be,” says Meta Financial (NASDAQ:CASH) President Brad Hanson, and he believes the better disclosure "helps legitimize the industry."
- Around 8% of U.S. households use prepaid cards, but that rises to 22% when just looking at those without bank accounts. Less than a $20B business six years ago, the amount put on prepaid cards should near $100B this year.
Nov. 10, 2014, 1:52 PM
- The JPMorgan Diversified Return International Equity ETF (NYSEARCA:JPIN) seeks to provide investors risks-adjusted returns through international equity exposure with a focus on lower volatility.
- The ETF will track the FTSE Developed ex-North America Diversified Factor Index, which employs a unique risk framework and multi-factor stock filter.
- "We believe that JPMorgan (NYSE:JPM) has unique investment insights and international capabilities that will be attractive to ETF investors, and this product is an important additional step in delivering those capabilities," said Robert Deutsch, head of the ETF business for J.P. Morgan Asset Management, in a press release.
- JPIN is fairly similar to the JPMorgan Diversified Return Global Equity ETF (NYSEARCA:JPGE), JPMorgan's first ETF, which began trading earlier this year.
- Other International equity ETFs: VEU, VXUS, SCHF, IXUS, ACWX, CWI, GWL, ACIM, AADR, RTR, VIDI, DBAW
Nov. 7, 2014, 11:24 AM
- The bank's target per its 2014 investor day was for 2K job cuts in the card, merchant services, and auto unit, and 6K cuts in mortgage banking, but - presenting today at an investor conference - CEO Consumer & Community Banking Gordon Smith says there should be additional reductions of 3K in the two divisions.
- JPMorgan (NYSE:JPM) expects to exit 2016 with expenses in the combined units $2B less than they will be this year.
- Webcast and presentation slides
Nov. 6, 2014, 10:59 AM
- Its investment banking fees in Europe lagging industry peers, JPMorgan (NYSE:JPM) in 2004 bought a 50% stake in U.K. investment bank Cazenove Group (and bought the rest of the company in 2010; total cost of about £1B). Today, JPMorgan's investment banking market share in the U.K. is 9.8%, up from 6.5% in 2012, making it one of the bank's faster-growing markets, and boosting its overall European share.
- Jamie Dimon hopes to soon pass Deutsche Bank in the European investment bank tables - its market share of 7.4% is just 30 bps less than Deutsche's. In 2010, Deutsche had a 100 basis point lead.
Nov. 3, 2014, 5:56 PM
- From JPMorgan's (NYSE:JPM) Q3 10-Q: "DOJ is conducting a criminal investigation, and various regulatory and civil enforcement authorities ... are conducting civil investigations, regarding the Firm’s foreign exchange ("FX") trading business. These investigations are focused on the Firm's spot FX trading activities as well as controls applicable to those activities."
- JPMorgan has hiked the upper end of its estimate range for the "reasonably possible losses" it could see from legal matters by $1.3B to $5.9B.
- Citi and UBS are among the other banks facing DOJ forex probes. JPMorgan's Q3 legal expenses totaled $1.01B, with much of the spending related to currency investigations.
- JPM -0.9% AH.
- Previous: Banks brace for FX settlements
Oct. 31, 2014, 10:38 AM
- Royal Bank of Scotland (RBS +4.8%) is the latest to do so, today announcing the setting aside of $640M for potential settlements in the currency-rigging investigations.
- In total, seven major U.S. and European banks have boosted their legal reserves by $6.5B in October. Last night, Citigroup (C +0.4%) was forced to cut its Q3 earnings by $600M amid "rapidly-evolving" probes.
- UBS has put aside the most of any single bank this month - $1.9B. Next in line is Deutsche Bank (DB +0.7%) with $1.1B, and JPMorgan (JPM +1.3%) with $1B. None of the lenders disclosed exactly how much was specifically for foreign exchange, and none have yet been formally accused of wrongdoing.
- Barclays (BCS +5.6%) reserved $800M for FX-related settlements, and Credit Suisse (CS +0.5%) $400M.
- ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, IAI, SEF, IYG, FXO, FNCL, FINU, RWW, RYF, FINZ
Oct. 23, 2014, 4:49 PM
- Not having had the pleasure of being subject to the stress test and CCAR previously, Deutsche Bank's (NYSE:DB) U.S. unit will be a participant next year
- As in prior years, those BHCs with large trading operations - BAC, C, GS, JPM, MS, WFC - will be required to factor in a global market shock as part of their scenarios.
- Those six, plus STT and BK - thanks to their custodial operations - will be required to incorporate a counterparty default scenario.
- Among the items in the severely adverse scenario is the unemployment rate jumping to 10%, a 60% dive in the stock market, and oil jumping to $110 per barrel (how about oil falling to $10 per barrel?).
- ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, IAT, IAI, SEF, IYG, FXO, FNCL, KBWB, RKH, QABA, FINU, KCE, KRU, KBWR, RWW, RYF, KBWC, FINZ, KRS
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