Tue, Jun. 2, 12:40 PM
- "We realized that hardly anyone uses voice mail anymore because we’re all carrying something in our pockets that’s going to get texts or e-mail or a phone call,” says Gordon Smith, head of JPM's consumer and community bank.
- The bank has nearly 136K employees in its retail division, and voice mail services cost $10 per month per line. JPMorgan is looking to trim $2B in annual expenses and other initiatives include cutting branch staff and pushing customers into mobile/automated channels.
- Webcast from today's Deutsche Bank conference presentation
Mon, Jun. 1, 7:32 AM
- David Lau replaces Catherine Leung who was pushed out by JPMorgan (NYSE:JPM) amid an investigation into its Chinese hiring practices.
- In addition to his new post as head of global investment banking for Hong Kong, Lau will retain his responsibilities as head of China corporate finance, according to the WSJ.
Thu, May 28, 2:10 PM
- J.P. Morgan Chase (JPM -0.7%) has begun layoffs that are expected to total more than 5,000 by next year, eliminating at least 2% of the bank's total workforce,WSJ reports.
- The layoffs are said to affect all four of the bank’s major business units: corporate and investment banking, consumer and community banking, asset management and commercial banking.
- At least 1,000 of the 5,000 layoffs already have been carried out in the past few months, but more are expected as JPM continues to slim expenses in an effort to meet profitability goals, according to the report.
- JPM cut 7,900 mortgage jobs and left certain businesses last year, and has slimmed its workforce to ~240K employees following cuts in 11 of the last 12 quarters.
Thu, May 28, 2:30 AM
- The world's most popular sport was plunged into turmoil on Wednesday as U.S. authorities announced charges against nine FIFA officials and five sports executives, alleging they were part of a scheme in which more than $150M in bribes were paid in exchange for the commercial rights to soccer tournaments.
- The bribes were reportedly paid using accounts at major global banks, raising the prospect that Wall Street could be in the spotlight again over its involvement in yet another scandal. Banks involved: JPMorgan (NYSE:JPM), Citigroup (NYSE:C), HSBC, BofA (NYSE:BAC), UBS and Julius Baer (OTCPK:JBAXY).
- Nike, which also might be in the hot seat, said it would cooperate with authorities.
Wed, May 27, 3:47 PM
- “God knows how any of you can place your vote based on ISS or Glass Lewis,” says the JPMorgan (JPM +1.3%) CEO, chiding "lazy" investors who pay too much heed to proxy advisors. "If you do that, you are just irresponsible, I’m sorry. And you probably aren’t a very good investor, either.”
- Top executives narrowly won approval for their pay 2014 pay package, in part after ISS and Glass Lewis recommended investors reject the deal.
- Moving to operations, Dimon says Q2 trading volumes are about inline with where they stood one year ago.
- "It's a terrible thing to have to go through," says Dimon, speaking of last week's guilty plea over forex manipulation. While not crippling, Dimon does expect the outcome to cost the bank some business.
Wed, May 27, 12:53 PM
- Amid its investigation of JPMorgan's (NYSE:JPM) hiring practices in China, the SEC last month issued a subpoena requesting all communications between the bank and 35 mostly high-ranking Chinese officials. Topping the list, reports the WSJ, is Beijing's point man on anticorruption, Wang Qishan (the DOJ has requested information as well).
- Mr. Wang's name previously had not come up in media reports of the investigation, and his inclusion could put a strain on U.S.-China relations.
- Including Mr. Wang, none of the Chinese officials connected to the hiring affair have faced censure there, and it's unclear whether Beijing even considers such behavior a problem.
Tue, May 26, 8:37 PM
- With attention already starting to shift to regulatory approval, Charter Communications (CHTR +2.5%) CEO Tom Rutledge says his company's $55B acquisition of Time Warner Cable (TWC +7.3%) will do better with the FCC than Comcast's: Think small.
- "If you look at the ecosystem, who we're playing with in terms of other competitors, they're very large, and we'll still be a relatively small company compared to the large phone companies, compared to Comcast, compared to the wireless companies," he told CNBC.
- Charter's simultaneous deal for Bright House Networks may pump up its own leverage, but it was critical to the TWC bid, says analyst Craig Moffett: Virtually debt-free Bright House and its borrowing capacity likely added as much as $18/share to Charter's $195.71/share offer. Moffett says TWC's handling of Altice's (OTC:ATCEY) counter-play was masterful.
- About that debt: TWC bondholders are still nervous about the combined load (While the firm's 30-year bonds rose 11.7% today, they're still down about 16% from last month). Moody's is likely to push TWC into junk rating territory as debt-to-EBITDA rises from TWC's 2.97 to about 4.79 for the combination. But again, Bright House's addition and "conservative voice on the board" may be mitigating the effects.
- And MoneyBeat's deal tally: Aside from big winner TWC, winners include Goldman Sachs (NYSE:GS), (eventually) rewarded for backing Charter, and UBS, working as sole adviser to Bright House; Losers include Comcast backer JPMorgan Chase (NYSE:JPM), and Deutsche Bank (DB -3.4%) -- a Charter backer back when, but unseen in the new deal.
- Previously: Charter to merge with Time Warner Cable, buy Bright House (May. 26 2015)
Thu, May 21, 9:17 AM
- New additions to Goldman's hedge fund hotels - 50 stocks which most frequently appear among the largest ten holdings of hedge funds: AerCap (NYSE:AER), Assured Guaranty (NYSE:AGO), Baker Hughes (NYSE:BHI), Citizens Financial (NYSE:CFG), Colony Capital (NYSE:CLNY), Dresser-Rand (NYSE:DRC), Family Dollar (NYSE:FDO), Hospira (NYSE:HSP), Netflix (NASDAQ:NFLX), NXP Semi (NASDAQ:NXPI), Pharmacyclics (NASDAQ:PCYC), Visa (NYSE:V), and Walgreens (NASDAQ:WBA).
- Since 2001, the basket has outperformed the S&P 500 in 66% of quarters by an average of 73 basis points. YTD, however, it has underperformed by nine bps. Goldman notes the current basket overweights Consumer Discretionary (22%) and underweights Consumer Staples (2%).
- Looking at the full list, Actavis (NYSE:ACT) leads the way, with 77 funds naming the stock as a top 10 holding. Next up is Apple (NASDAQ:AAPL) with 69, then Facebook (NASDAQ:FB) at 42. For the entire list of 50, the average is 26 funds making a stock a top 10 holding.
- The rest in order: Valeant (NYSE:VRX), Microsoft (NASDAQ:MSFT), DirecTV (NASDAQ:DTV), Citigroup (NYSE:C), Time Warner (NYSE:TWC), Delta (NYSE:DAL), Cheneire (NYSEMKT:LNG), Yahoo (NASDAQ:YHOO), Liberty Global (NASDAQ:LBTYK), AIG, SunEdison (NYSE:SUNE), Air Products (NYSE:APD), Amazon (NASDAQ:AMZN), GM, BofA (NYSE:BAC), JPMorgan (NYSE:JPM), Macquarie Infrastructure (NYSE:MIC), American Airlines (NASDAQ:AAL), Charter Communications (NASDAQ:CHTR), Google (GOOG, GOOGL), Ally Financial (NYSE:ALLY), NorthStar Realty (NYSE:NRF), Priceline (NASDAQ:PCLN), eBay (NASDAQ:EBAY), MasterCard (NYSE:MA), Alibaba (NYSE:BABA), Micron (NASDAQ:MU), Williams (NYSE:WMB), Gilead (NASDAQ:GILD), Berkshire Hathaway (BRK.A, BRK.B), Dolar General (NYSE:DG), NorthStar Asset (NYSE:NSAM), Brookdale Senior (NYSE:BKD), DISH Network (NASDAQ:DISH).
- See also: Goldman updates list of hedge funds most-shorted stocks (May 21)
Wed, May 20, 10:10 AM
- Those facing criminal charges from the DOJ are UBS (already reported, the stock is up 3.4% today), Barclays (BCS +2.5%), Citigroup (C -0.5%), JPMorgan (JPM -0.4%), and RBS (RBS +1.6%).
- Bank of America (BAC -0.4%) faces a $205M fine by the Fed, but no criminal charges. Fines by the Fed for the other banks range from $274M-$342M.
- There are fines from other regulators as well, with the total for all the banks summing to $5.8B. Barclays looks to be hit the hardest on that front, with total monetary penalties of $2.4B.
Tue, May 19, 2:14 PM
Tue, May 19, 12:58 PM
- Just 61.4% of votes were in favor of the executive pay package, down from 77.9% a year ago, suggesting a number of sizable institutional investors voted against it.
- 35.9% voted for an independent board chairman, up from 32.3% the last time owners had a say two years ago. The issue was somewhat different this year, as the vote now was for making the change after Jamie Dimon exits the role.
- Of the pay issue, JPM senior independent director Lee Raymond acknowledged shareholder displeasure with tying a portion of pay to a predetermined performance metric, but says there won't be any immediate change.
Thu, May 14, 9:37 AM
- How times change. It wasn't that long ago that the business model for the specialty servicers was to pick up all the MSRs big banks were going to be unloading.
- Today, its Ocwen FInancial (OCN -0.6%) unloading more MSRs, with the consumer and commercial banking unit of JPMorgan (NYSE:JPM) the buyer of 266K high-quality Fannie Mae loans worth an estimated $45B.
- Chase will begin onboarding the portfolio on June 1.
- Source: Press Release
Thu, May 14, 7:55 AM
- "Guilty" is the new "neither admitting nor denying the charges."
- Yes, the DOJ looks set to extract guilty pleas on felony charges from five big banks over forex rigging, but life will go on for the lenders without much of a hiccup (after paying billions in fines), according to DealBook.
- Barclays (NYSE:BCS), JPMorgan (NYSE:JPM), Citigroup (NYSE:C), RBS, and UBS are the five whose holding companies will plead guilty, according to the report.
- While the guilty pleas are a nice feather in the caps of prosecutors, they seem to me more symbol than substance - too harsh a penalty would imperil banking operations, and behind the scenes, bank lawyers are working the phones with regulators to assure the felons won't be barred from certain businesses.
Fri, May 8, 8:03 AM
- Bank of America (NYSE:BAC) and JPMorgan (NYSE:JPM), along with Citigroup (NYSE:C) and Synchrony Financial (NYSE:SYF) are being sued for their charming practice of using fancy footwork to keep debts alive on consumers' credit reports after those debts have been legally eliminated in bankruptcy.
- Both BofA and JPMorgan have agreed to update borrowers' credit reports within the next three months to reflect the fact that those debts are no longer there. Last year Synchrony agreed to a similar move at least on a temporary basis.
Wed, May 6, 1:47 AM
- According to its latest quarterly filing, JPMorgan (NYSE:JPM) is in "advanced stages" of settlement talks with the DOJ and Federal Reserve over previously disclosed foreign exchange investigations.
- The bank said the amount it may lose related to litigation in excess of legal reserves could be as much as $5.5B as of March 31, down from $5.8B three months earlier.
- SEC Form 10-Q
- Previously: FT: Next mega forex settlement scheduled for mid-May (Apr. 21 2015)
Fri, May 1, 3:05 AM
- More than seven years after the global financial collapse, regulators and investors are still working through a mile-high pile of lawsuits and other civil actions, and it seems like the fines keep on coming.
- Since the crisis, banks and other institutions have paid more than $150B in fines, settlements and other penalties, according to a tally by FT. That compares with the roughly $700B in profits generated by U.S. banks between 2007 and 2014.
- So where have all the payments gone? The biggest have landed in the Justice Department, which has collected some $50B. Other heavy collectors include the FHFA, Fannie Mae, HUD and the SEC.
- Among the banks paying the biggest amounts, BofA (NYSE:BAC) tops the list - with nearly $58B, followed by JPMorgan (NYSE:JPM) ($31.3B), Citigroup (NYSE:C) ($12.8B) and Wells Fargo (NYSE:WFC) ($9.7B).
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