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).
Fri, Apr. 24, 9:15 AM
- Comcast (NASDAQ:CMCSA) is trading up 1.3% premarket, and Time Warner Cable (NYSE:TWC) is 0.8% higher as well, after confirmation that their $45B merger deal is dead.
- In statements by the Justice Dept. and FCC thanking each other for their cooperation, it's clear that FCC Chairman Tom Wheeler was against the deal, which would have made agency approval a very long shot.
- It's also clear why Wheeler was opposed: It's about broadband, not cable, and protecting the burgeoning streaming video market. "The proposed merger would have posed an unacceptable risk to competition and innovation especially given the growing importance of high-speed broadband to online video and innovative new services."
- While Comcast doesn't pay a breakup fee with the deal's end, that doesn't mean everyone walks away cheaply: Advisers including bankers and lawyers will lose out on $380M in fees, chiefly Goldman Sachs (NYSE:GS), banker for Charter Communications (NASDAQ:CHTR). J.P. Morgan Chase (NYSE:JPM) will drop from second to third in the league tables. As a mitigating factor, more deals are likely on the way, though.
- Other sector players premarket: AT&T -0.3%; Verizon -0.2%.
Thu, Apr. 23, 4:05 PM
- Not only will the deal cancellation cost JPMorgan (NYSE:JPM) and others hundreds of millions in fees, but the bank will lose its number two spot in 2014's M&A ranking to Bank of America.
- As Maureen Farrell points out, M&A rankings are about more than bragging rights. Firms tout their rankings in marketing materials and habitually promote performance. Banks and law firms will fight for spots on deals simply for the chance to boost their ranking.
- Previously: Bloomberg: Comcast dropping TWC merger plans (April 23)
Tue, Apr. 21, 1:52 AM
- The U.S. Department of Justice is now pushing for five banks, including JPMorgan (NYSE:JPM), Barclays (NYSE:BCS), Citigroup (NYSE:C), RBS (NYSE:RBS) and UBS (NYSE:UBS), to reach a joint mega settlement to allegations they manipulated the foreign exchange markets.
- The deal would see some institutions pay about $1B each and is scheduled for mid-May, FT reports.
- Last November, the banks (except Barclays) agreed to pay $4.3B to authorities in the U.S., U.K. and Switzerland in the first settlements announced in the forex investigation, although the DOJ was not included on that ticket.
Tue, Apr. 14, 9:14 AM
- "Dialog with the Fed is getting better, but I don't think it is now or will ever be a transparent process," says JPMorgan (NYSE:JPM) CFO Marianne Lake on the earnings call. "Maybe by design," she adds.
- Presentation slides
- Asked if the bank has any interest on buying any of the assets of GE Capital, Lake demurs, telling listeners JPMorgan is happy to advise GE on the sales, but won't comment on what it might buy.
- Speaking to reporters before the call, Lake is optimistic this quarter's strong trading business results is the start of a trend, though while Q2 activity is looking strong so far, it will be slightly than the first quarter.
- Shares +1.3% premarket.
- Previously: JPMorgan Chase beats by $0.18, beats on revenue (April 14)
- Previously: "Robust" activity in FICC leads strong quarter at JPMorgan (April 14)
Tue, Apr. 14, 7:16 AM
Tue, Apr. 14, 7:15 AM
- Q1 net income of $5.914B or $1.45 per share vs. $5.269B or $1.28 one year ago. ROTCE of 14% vs. 13%. Q1 results include legal items footing to $0.13 per share.
- Consumer & Community Banking net income of $2.219B vs. $1.981B one year ago on revenue of $10.704B vs. $10.534B. Noninterest expense of $6.19B vs. $6.437B, thanks to lower mortgage banking and consumer & business banking costs.
- Corporate & Investment Bank net income of $2.537B vs. $2.125B a year ago on revenue of $9.582B vs. $8.842B. Markets & Investor Services revenue of $6.5B up 7% Y/Y thanks to "robust" client activity in FICC.
- Commercial Banking net income of $598M vs. $594M a year ago on revenue of $1.742B vs. $1.678B.
- Asset Management net income of $502M vs. $454M a year ago on revenue of $3.005B vs. $2.8B.
- Tangible book value per share of $45.45, up 9% Y/Y. Basel III CET ratio of 10.6%.
- Conference call at 8:30 ET.
- JPM +0.7% premarket.
- Previously: JPMorgan Chase beats by $0.18, beats on revenue (April 14)
Tue, Apr. 14, 7:01 AM
Mon, Apr. 13, 10:02 PM
- The scorecard since the Bank One/JPMorgan (NYSE:JPM) merger in 2004 - with Jamie Dimon taking the helm of the merged company - is a remarkable one, writes The Brooklyn Investor.
- Dimon has grown tangible book value per share at a rate of 14.1% annually. As comparison (though it isn't a perfect one), BVPS at Berkshire Hathaway (BRK.A, BRK.B) and Markel (NYSE:MKL) - hall of fame compounders - has grown by 10.1% and 12.5% respectively per year over the same time frame. Keep in mind that JPMorgan turned in this record during the period that includes the financial crisis.
- As for stock performance, someone owning Bank One when Dimon became CEO in 2000 and holding through the merger would have had a total return of 10.4% annually since - 170 basis points per year better than Berkshire Hathaway. The S&P Financials Index over that time has returned just 2.2% per year, and the S&P 500 only 4%.
- As for Dimon's defense against those arguing for a break-up of JPMorgan, BI's buying it, excerpting the CEO: "Our long-term view means that we do not manage to temporary P/E rations - the tail should not wag the dog."
- And finally, BI notes Jamie Dimon comes pretty cheap - the average percentage of profits paid to the JPMorgan CEO over the three years ended in 2013 was 0.09%, the lowest among the Too Big To Fail U.S. banks.
Mon, Apr. 13, 5:30 PM
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
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