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
Oct. 22, 2014, 3:43 PM
- Emails from 2011 show legal and compliance executives in New York were alerted JPMorgan's (JPM -0.5%) hiring of the offspring of senior Chinese officials helped to win it investment banking business, reports the WSJ. This was more than a year before U.S. authorities began their investigation.
- The emails show JPMorgan officials dismissed the accusations, but nevertheless proposed changes to the bank's hiring practices in the region.
- JPMorgan hasn't yet been officially charged with any wrongdoing, but the SEC is investigating "what executives knew and when they knew it." The breadth of any enforcement action is likely to closely follow how high up the JPMorgan organization chart the SEC can show awareness of misconduct, says a law professor.
Oct. 22, 2014, 10:32 AM
- The MBA index rose 11.6% for the week ended October 17, the largest gain since January as mortgage rates continued to decline - the average 30-year fixed mortgage coming in at 4.1%, the lowest since May 2013.
- Leading the way were refinancings, with that gauge jumping 23.3%, the biggest move since January 2012 (purchase applications fell 4.6%).
- Should the trend continue, the now-lean mortgage operations at places like Wells Fargo (WFC +0.2%), JPMorgan (JPM +0.2%), and Bank of America (BAC +0.2%), among others, should provide a nice boost to Q4 results.
- ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, IAT, SEF, IYG, FXO, FNCL, KBWB, RKH, QABA, FINU, KRU, KBWR, RWW, RYF, FINZ, KRS
Oct. 21, 2014, 10:57 AM
- Ignoring a recommendation from other Fed supervisors in 2009, the FRBNY failed to examine JPMorgan's (JPM +1.6%) Chief Investment Office ahead of the 2012 trading debacle which cost the bank $6B, according to a report released today by the Fed's Office of Inspector General.
- Among the flaws at the New York Fed, says OIG, were limited resources and an over-reliance on certain personnel.
- The FRBNY says it is "committed to improving supervision."
Oct. 21, 2014, 8:49 AM
- At issue are charges of rigging Swiss franc Libor benchmark interest rates, and JPMorgan (NYSE:JPM), UBS, and Credit Suisse (NYSE:CS) will be collectively fined more than $115M, reports Reuters. Not being penalized is RBS thanks to its role as a whistleblower in the case.
- JPMorgan is reportedly set to receive the biggest fine at about $89M.
Oct. 21, 2014, 3:51 AM
- Officials from the FBI and Secret Service have announced that authorities believe the cyber attack on JPMorgan (NYSE:JPM) in August was the work of cybercriminals, ruling out the Russian government as a culprit.
- News reports at the time of the attack suggested that Russia may have been a sponsor of the security breach as retribution for economic sanctions imposed by the U.S.
Oct. 17, 2014, 2:50 PM
- Among the lenders now charging clients who want to park euros with them are Bank of New York Mellon (BK +0.2%), Goldman Sachs (GS +1.8%), and JPMorgan (JPM +1.5%), reports the WSJ. The banks themselves must pay to deposit money with the ECB after it imposed a negative rate on deposits last summer (and then made it more negative last month).
- Next up is HSBC which reportedly will son begin charging customers who deposit more than about €10M, and Credit Suisse (CS +1.1%) is set to do the same.
- Clients most immediately affected are investment firms, but multinationals with sizable European operations may soon face these costs.
Oct. 17, 2014, 8:07 AM
- The talks - which would involve one of the largest real estate complexes for one company in city history and include a large package of incentives - have reached a "feverish" state after nearly falling apart earlier this week, reports the NYT.
- The property at Hudson Yard would include two towers with space equivalent to that of two Empire State Buildings, and be home to 16K employees.
- JPMorgan (NYSE:JPM) - according to sources - had initially sought more than $1B in state and city concessions, and says the benefits to NY would far outweigh that value. “There’s no way that the city would entertain a demand for a billion dollars in additional incentives at Hudson Yards,” says NYC's deputy mayor for economic development.
Oct. 15, 2014, 10:49 AM
- Bank earnings models will no doubt need to be tweaked as the sure thing of higher rates becomes somewhat less sure, with the 10-year U.S. Treasury yield plunging all the way down to 2%, and 30-day Fed Funds futures - just weeks ago pricing in 100% chance of a rate hike by June 2015 - now sees no move until December 2015.
- The XLF is lower by 1.9% and the Regional Banking ETF (NYSEARCA:KRE) is down 2.1% (the S&P 500 is off a mere 1.1%). Among individual names, KeyCorp (KEY -6.4%), First Bancorp (FBP -6.4%), Regions Financial (RF -4%), U.S. Bancorp (USB -2.2%), Fifth Third (FITB -2.6%), Bank of America (BAC -4%), Citigroup (C -3.3%), JPMorgan (JPM -2.8%), Wells Fargo (WFC -1.9%).
- Financial ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, IAT, SEF, IYG, FXO, FNCL, KBWB, RKH, QABA, FINU, KRU, RWW, KBWR, RYF, FINZ, KRS
- Life insurers were also waiting on higher rates and they're slipping more than the averages as well. MetLife (MET -3.7%), Prudential (PRU -2.9%), Manulife (MFC -3.5%) Sun Life (SLF -3.4%), Lincoln Financial (LNC -3.9%).
- Insurance ETFs: KIE, IAK, KBWP, KBWI
- Previously: BofA call: Assumption about higher rates not so sure anymore
JPM vs. ETF Alternatives
Other News & PR