Seeking Alpha
 

JPMorgan Chase & Co. (JPM)

- NYSE
  • Sep. 3, 2014, 7:39 AM
    • "CCAR represents the binding capital constraint for Bank of America (NYSE:BAC)," says analyst Steven Chubak, pulling his Buy rating on the stock. The higher required capital, he says, cuts the ROE potential by 120 basis points to just 13%, supporting a price target cut to $17, and a downgrade to Neutral.
    • Alongside the cut in BofA, Chubak upgrades JPMorgan (NYSE:JPM) to a Buy with price target hiked to $69 from $64. Citigroup (NYSE:C) remains Nomura's top pick among the banks.
    | 5 Comments
  • Sep. 3, 2014, 3:16 AM
    • JPMorgan (NYSE:JPM) is in talks to sell its oil-supply agreement with Philadelphia Energy Solutions to Bank of America (NYSE:BAC).
    • Operated as a joint venture between Sunoco and the Carlyle Group (NASDAQ:CG), Philadelphia Energy Solutions is one of the largest refineries in the country, processing 330K barrels of crude a day.
    • Under the terms of the current agreement, JPMorgan supplies the refinery with crude oil and credit and receives refined fuel products that it can trade.
    | 4 Comments
  • Sep. 3, 2014, 2:39 AM
    • Bank regulators are expected to finalize rules today that would require banks to hold capital against every asset on their books, and approve of a "liquidity-coverage ratio", which would require large banks to load up on ultra-safe assets to fund their operations for 30 days.
    • The new rules have Wall Street concerned due to the likely harm to earnings and lending restrictions, although regulators say the policies will create a safer financial system.
    • Related tickers: JPM, C, BAC, WFC, GS, MS, BK, STT, ZION
    | 11 Comments
  • Sep. 2, 2014, 7:15 PM
    • The FBI has found no evidence to suggest the hacker(s) who successfully penetrated the computer system at JPMorgan Chase (NYSE:JPM) scored any similar successes against other big U.S. banks, WSJ reports, citing four people close to the investigation.
    • A source said the JPM incident was at first conflated with suspicious activity related to other banks, but as the investigation continued, the threats appeared to be separate.
    • JPM has said it is not experiencing unusual amounts of fraud, and two people briefed on the investigation say consumers likely do not face a serious risk; some cybersecurity experts believe the hack may have been perpetrated by Russians in retaliation for U.S. sanctions.
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, SEF, IYG, FXO, FNCL, FINU, RWW, RYF, FINZ
    | 1 Comment
  • Aug. 30, 2014, 6:48 PM
    • "Most of the reason that banks are underearning relative to their historical norms ... is economic and not regulatory," says Richard Pzena (NYSE:PZN), who remains bullish on the TBTFs. Low interest rates, weak trading, and "government persecution" are the three factors, and - should these normalize - earnings could nearly double at Bank of America (NYSE:BAC) and Citigroup (NYSE:C), though JPMorgan's (NYSE:JPM) boost would be more modest. Goldman Sachs (NYSE:GS) is another favorite.
    • Broad financial ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, SEF, IYG, FXO, FNCL, FINU, RWW, RYF, FINZ
    • Another cheap sector is energy, says Pzena, and based on relative valuation against the broader market - whether price-to-book or price-to-earnings - the major integrated oil companies are selling near all-time lows.
    • What the market is missing, says Pzena, is the nature of oil investment. The old days saw capital spending one year, and boosted volume the next. Projects nowadays are far larger and require several years of spending before returns roll in. "We think those big new projects are going to perform and produce decent returns." HIs favorites: BP, RDS.A, RDS.B, XOM, TOT.
    • Broad energy ETFs: XLE, ERX, VDE, OIH, ERY, DIG, DUG, IYE, PXJ, FENY, RYE, FXN, DDG
    | 26 Comments
  • Aug. 28, 2014, 8:22 AM
    • "Companies of our size unfortunately experience cyberattacks nearly every day," says JPMorgan (NYSE:JPM) spokesperson Trish Wexler. The bank isn't seeing anything unusual, but is working closely with law enforcement to determine the scope of the breach and anyone impacted by it.
    • Previously: Feds probe Russian tie to JPMorgan hacking
    • Shares -0.6% premarket
    | 3 Comments
  • Aug. 27, 2014, 3:38 PM
    • Possibly retaliating against against U.S. sanctions, Russian hackers attacked the U.S. banking system this month, stealing data from JPMorgan (JPM -0.1%) and at least one other bank, reports Bloomberg.
    • The sophistication of the attack suggests something far beyond the capability of ordinary criminal hackers, say security experts. The FBI is investigating and the NSA has reportedly joined the probe.
    | 3 Comments
  • Aug. 26, 2014, 1:25 PM
    • "We're just not going to make those loans and there's going to be a whole bunch of Americans that are underserved in the mortgage market," says Wells Fargo (WFC +0.2%) chief John Stumpf, warning (in an FT interview) the GSEs to stop being so quick to accuse banks of faulty underwriting and then forcing them to repurchase soured loans.
    • Fighting the last war, regulators are demanding more rigorous underwriting and tighter lending criteria, but evidence is beginning to grow (especially if you ask banks!) that the pendulum has swung too far.
    • Stumpf: "If somebody makes a payment for - let’s say - three years, the risk ought to transfer then to the insurance company ... If you’re going to pick through each one looking for a technical fault not to pay your insurance policy we’re not going to be in that business.”
    • Jamie Dimon (JPM +0.8%) last month: "We want to help consumers there, but we can’t do it at great risk to JPMorgan ... We’re going to be very very cautious in that line of business.”
    | 24 Comments
  • Aug. 21, 2014, 11:43 AM
    | 19 Comments
  • Aug. 21, 2014, 2:39 AM
    • JPMorgan (NYSE:JPM) and Bank of America (NYSE:BAC) are planning to raise junior employees' salaries by at least 20%, Reuters reports
    • Many banks have been considering pay hikes, as Wall Street continues to ease strains on junior bankers by limiting the hours they work and compensating them better.
    • Yesterday, Goldman Sachs (NYSE:GS) announced its plans for salary increases and Citigroup (NYSE:C) is now considering a similar pay raise.
    | 35 Comments
  • Aug. 13, 2014, 3:14 AM
    • Bank officials, trade groups and lawmakers are quietly pressing the Federal Reserve for a delay of up to seven years regarding the rule that limits their investments in private-equity and venture-capital funds
    • The "Volcker rule," part of the Dodd-Frank legislation, restricts banks' ownership stake in hedge funds and private equity funds, and prohibits banks from making speculative bets with their own money.
    • Regulators finalized the rule in December but agreed not to enforce it until 2015.
    • Related tickers: JPM, C, BAC, WFC, GS, MS, BK, STT, ZION
    | 11 Comments
  • Aug. 12, 2014, 10:36 AM
    • Amid a regulatory push for foreign banks to boost governance of their local operations, JPMorgan Securities - the bank's (JPM +0.2%) main European holding company - hires Sir Win Bischoff to take over as chairman, replacing Tom Hoppe who is stepping down in January.
    • Sir Win exited the chairman's spot at Lloyds four months ago. He took on the chairman's role there in 2009 and helped steer the bank back to profitability following its part-nationalization.
    • A 50-year finance veteran in London, Sir Win has already joined the board as a non-executive and is lead independent advisor of the oversight committee at JPM's London branch.
    | Comment!
  • Aug. 11, 2014, 4:23 PM
    • As tipped off a couple of weeks back, JPMorgan's (JPM) long-awaited sale of about half of its stake in its P-E arm - One Equity Partners - has been agreed upon. The buyers are Carlyle Group's (NASDAQ:CG) AlpInvest Partners and Lexington Partners.
    • Terms were not disclosed, but the deal - expected to close by y ear-end -reportedly values the companies JPMorgan is selling at about $2B, and the bank will retain ownership of about half of One Equity's nearly 30 companies. The transaction isn't expected to have a material impact on The Bank of Dimon's earnings.
    • It was a little over a year ago when JPMorgan said the time had come to jettison One Equity amid less-than-stellar returns and an uncertain regulatory environment. According to Dan Primack, the bank wanted to sell the entire portfolio, but it was too large for the market to absorb at the current time.
    • Press release
    • Previously: WSJ: J.P. Morgan nears deal for One Equity Partners buyout arm
    | Comment!
  • Aug. 8, 2014, 12:03 PM
    • Private equity firms have paid $1.3B this year to investment banks like JPMorgan (JPM +0.4%) and Goldman Sachs (GS +0.8%) for their assistance with arranging IPOs of portfolio companies, according to Dealogic. That's more than double the $498M paid over the same period in 2013.
    • The share price performance of the IPOs leaves something to be desired - up 8.1% so far vs. a 25.9% gain for IPOs of businesses not backed by P-E. On the other hand, IPOs from P-E firms have performed better over the long-term - those from 2010, for example, are up 48.4%, while all other IPOs are down 19.2%.
    • Goldman has the largest share of global fees from P-E firms with 11.1%, followed by JPMorgan with 8.2%. Bank of America (BAC -0.3%) has a 7.2% share.
    | Comment!
  • Aug. 6, 2014, 8:48 AM
    • The Federal Reserve and the FDIC say the bankruptcy plans submitted by 11 of the largest banks make "unrealistic or inadequately supported" assumptions and "fail to make, or even to identify, the kinds of changes in firm structure and practices that would be necessary to enhance the prospects for" an orderly failure. Ouch!
    • Full feedback
    • The 11 dinged: BAC, BK, C, GS, JPM, MS, STT, and the U.S. units of BCS, CS, DB, and UBS.
    • To review: Dodd-Frank requires banks annually submit a "living will" detailing their operations and exposures and how they could be dismantled without the need of a bailout in the event they near failure. Pleasing the regulators is a must as they have the power to force tougher capital rules or restrictions on growth, or even mandate a breakup of the lenders. As for the current failures, the banks have about a year to address D.C.'s concerns.
    • "Despite the thousands of pages of material these firms submitted, the plans provide no credible or clear path through bankruptcy that doesn't require unrealistic assumptions and direct or indirect public support," says the FDIC's #2 official, Thomas Hoenig.
    • ETFs: XLF, FAS, FAZ, UYG, VFH, IYF, SEF, IYG, FXO, FNCL, FINU, RWW, RYF, FINZ
    | 33 Comments
  • Aug. 4, 2014, 1:19 PM
    • At issue are about $75B in 330 RMBS trusts held by institutional investors like BlackRock and Pimco. Attempting to get past the mortgage lawsuits, JPMorgan (JPM -0.2%) made an offer to the trustees last November (ahead of its government settlement), and they are now asking a judge to approve the $4.5B settlement.
    • While trustees representing the vast majority of the trusts are on board, trustees for five of the trusts have declined the offer.
    | Comment!
JPM vs. ETF Alternatives
Company Description
JPMorgan Chase & Co is a financial services firm and a banking institution. its segments are Consumer & Community Banking, Corporate & Investment Bank, Commercial Banking, and Asset Management.
Sector: Financial
Country: United States