Fri, Apr. 10, 11:56 AM
- "I think their ability to provide a full breadth of services, whether that be M&A advisory or capital markets and debt, in a seamless environment is important," says Actavis CEO Brent Saunders, whose firm has done a lot of business with JPMorgan (NYSE:JPM) over the years, and which just completed the Allergan purchase with the bank's assistance.
- "I can tell you that in terms of getting the Allergan deal done, which was fairly difficult from an execution perspective – it was quite complex – that capability was instrumental to us being able to achieve our objectives in the deal.”
- JPMorgan was the sole advisor to Actavis on the $72.7B deal and also worked as lead arranger on a $36.4B bridge credit facility and new revolving facilities worth $5B.
- Saunders: “I can’t imagine doing a deal like that with seven or eight firms – I’m not sure we could have got a deal of that complexity or size done without a full-service investment bank.”
- Source: WSJ
Fri, Apr. 10, 11:26 AM
- Credit Suisse adds four companies to its U.S. Focus List, led by Devon Energy (NYSE:DVN), which it sees as a pure-play energy stock that investors can feel comfortable holding for the long-term and is not pegged to the oil markets.
- The firm also likes DVN's defensive valuation, top quartile oil growth profile and further accretion possibilities from the EnLink Midstream assets; its $80 stock price target is among the Street's best outlook.
- Credit Suisse cites another energy choice, Marathon Oil (NYSE:MRO), for its higher multiple businesses, and believes upstream cash margins have room to move up as shale production increases and oil prices recover.
- Also added to the U.S. Focus List: JPMorgan Chase (NYSE:JPM), Dunkin' Brands (NASDAQ:DNKN).
- Earlier: Dunkin' Brands tapped by Credit Suisse for new highs
Thu, Apr. 9, 7:48 AM
- Legal and regulatory costs have weighed on the bank's stock price, says JPMorgan (NYSE:JPM) CEO Jamie Dimon in his annual letter to shareholders, but the cloud is lifting. While there's still some uncertainty over, for instance, the forex investigations, things should settle down by next year, he says.
- Dimon laments that he spends more time talking to analysts and investors about regulatory issues than he does about the business of banking.
- While praising the idea of the Fed stress tests, he notes the exams assume dramatic moves taking place all in one day, with very little recovery in values. The full bank plan -such as dramatic expense cuts and cuts in the dividend and buyback - isn't fully reflected in the Fed models. He also reminds, JPMorgan made a profit in each quarter throughout the financial crisis.
Wed, Apr. 8, 12:25 PM
- After racking up more than $36B in legal fines since the financial crisis, JPMorgan (JPM +0.5%) is rolling out a surveillance program designed to detect rogue employees before they go off the tracks.
- Dozens of inputs, including whether employees skip compliance classes, violate personal trading limits, or break market-risk limits, will be fed into the program, says Sally Dewar, head of regulatory affairs for Europe, who is leading the effort.
- The program is currently being tested in the trading business before being rolled out to the investment banking and asset management divisions by 2016. The bank has hired 2.5K compliance workers and spent more than $730M improving operations over the past three years, and job postings show it'll continue to be an area of growth.
- Source: Bloomberg
Tue, Apr. 7, 7:35 AM
Thu, Apr. 2, 3:24 AM
- JPMorgan (NYSE:JPM) is on track to meet its mandate to provide billions of dollars in consumer relief to struggling homeowners as part of a settlement it reached over shoddy mortgage bonds it sold before the financial crisis.
- Joseph Smith, the monitor overseeing the settlement, has so far credited Chase with $2.2B out of the $4B it is required to provide to consumers by 2017.
- Chase must also pay $9B in cash, totaling a $13B settlement.
Wed, Apr. 1, 4:33 PM
- Looking for some kind of growth wherever they can find it, banks are about to get their wish as Fair Isaac is set to launch a new credit scoring metric which should expand by tens of millions the field of those eligible to get credit.
- The new score will pull payment histories for things like utilities to calculate credit scores for consumers who might otherwise not have one. Other things - like how often someone changes address - will be used to help calculate a score.
- FICO and 10 unnamed credit card issuers have been testing the new score since November, and Fair Isaac intends to roll things out nationwide by year-end. Right now, about 15M of the 53M previously unscorable Americans can be scored using the new system.
- Source: WSJ
- Among those of interest: WFC, C, BAC, JPM, COF, DFS, AXP
- ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, IAT, SEF, IYG, FXO, FNCL, KBWB, QABA, FINU, KRU, RWW, KBWR, RYF, FINZ, KRS
Mon, Mar. 30, 7:55 AM| Mon, Mar. 30, 7:55 AM | Comment!
Mon, Mar. 30, 4:09 AM
- Top European and U.S. banks axed 59,000 jobs last year as they restructured, cut costs and moved further into digital banking, Reuters reports.
- The figure brings the total number of jobs lost across 24 banks in the last two years to 160,000.
- Notables: Barclays (NYSE:BCS) shed 7,300 jobs last year due to a three-year plan to cut 19,000 staff; RBS (NYSE:RBS) slashed 10,000 employees as it sold overseas businesses and trimmed its investment bank further; JPMorgan (NYSE:JPM) and BofA (NYSE:BAC) also made substantial job cuts as they worked through troubled mortgages and refinanced loans at lower rates.
Sat, Mar. 28, 4:33 PM
- Barron's notes shares of JPMorgan (NYSE:JPM) trade at just 10x earnings, one of the lowest P/E ratios among big U.S. banks.
- At just 12x 2016 estimated earnings, shares could approach $80 next year - a 30% gain, still a steep discount to the S&Ps 500's P/E ratio of 16x.
- The stock yields 3%, tops among its peers.
- Barron's says investors haven't yet recognized that JPM has built several market-leading companies, including the country's No. 1 credit-card company; the No. 1 investment bank; the top private bank; and the third-largest asset manager. CLSA analyst Mike Mayo, a onetime skeptic who turned bullish in late 2014, carries a Buy rating and $70 price target. "In addition to a discounted valuation, JPMorgan has adapted to the changing landscape, grown its market share, and reinvested back in the business," another analyst says.
- Previously: JPMorgan holds on to top investment banking spot, (Mar. 27)
- Previously: Gasparino: Sizable cuts coming at JPMorgan investment and commercial banks (Mar. 19)
- Previously: JPMorgan formally authorizes $6.4B buyback, boosted dividend next quarter (Mar. 17)
Fri, Mar. 27, 6:57 AM
- At the prompting of at least one BNY Mellon (NYSE:BK) director, recruiting firm Spencer Stuart firm has come up with a list of potential candidates to replace embattled CEO Gerald Hassell.
- Gregory Fleming, who runs wealth and investment management at Morgan Stanley (NYSE:MS), has been contacted about the position, Reuters reports.
- Other potential candidates include Mary Erdoes, who runs JPMorgan's (NYSE:JPM) asset management business and Michael Cavanagh, a former JPMorgan executive who is now COO at P-E firm Carlyle (NASDAQ:CG).
- Previously: Marcato demands new leadership at BNY Mellon (Mar. 10 2015)
Fri, Mar. 27, 3:28 AM
- Despite its revenues falling 6%, JPMorgan (NYSE:JPM) retained its crown as the top performing investment bank in 2014, according to industry analytics firm Coalition.
- JPMorgan reaped $22B from investment banking last year, compared with $23.3B in 2013.
- Other U.S. banks also continued to dominate top spots, with Goldman Sachs (NYSE:GS) coming second overall across investment banking, and Citigroup (NYSE:C) and BofA (NYSE:BAC) sharing third place with Deutsche Bank (NYSE:DB).
Thu, Mar. 26, 4:37 PM
- The big banks have had a rough start to the year, but surging trading volume in bonds, currencies, and commodities in Q1 could make for pleasant surprises when the lenders report quarterly results next month, writes John Carney.
- The average daily trading volume across all U.S. bonds was up 10.6% Y/Y through the end of February, according to Sifma, with trading in corporate bonds up 18.1%, driven by a big rise in issuance. Trading in Fannie, Freddie, and Ginnie MBS was up 35.3% from a year ago.
- Goldman Sachs (NYSE:GS) could be a particular beneficiary, as about 25% of its revenue is generated by FICC, and Credit Suisse sees the bank posting its first year-over-year increase in that unit's revenue since 2009.
- Others of interest: Morgan Stanley (NYSE:MS), Bank of America (NYSE:BAC), Citigroup (NYSE:C), and JPMorgan (NYSE:JPM).
- ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, IAI, SEF, IYG, FXO, FNCL, FINU, KCE, RWW, RYF, KBWC, FINZ
Mon, Mar. 23, 8:58 AM
- In what could be a big boon for overseas banks doing business in China, Beijing is mulling sweeping changes for the securities industry which would include allowing foreign banks controlling stakes in their local joint ventures, reports Bloomberg.
- The looser restrictions would let players like Goldman Sachs (NYSE:GS), JPMorgan (NYSE:JPM), Morgan Stanley (NYSE:MS), Credit Suisse (NYSE:CS), Deutsche Bank (NYSE:DB), and Citigroup (NYSE:C) compete more effectively with dominant incumbents like Citic Securities.
- Current rules approved in 2012 allow overseas banks to just 49% ownership of securities firms. Prior to that, the limit was 33%. The above-listed banks have all entered the market since 2007.
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.
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