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big banks

JP Morgan, Goldman Sachs, and Morgan Stanley Form New Data Company

pre-market movers

Banking behemoths JP Morgan, Goldman Sachs, and Morgan Stanley are teaming up to create a company that will give them shared access to certain market data, which will help them cut data management costs.

The trio are each investing "seven figures" in the new initiative.

Here's why these highly competitive big banks are all teaming up...

Pass on JPMorgan (NYSE: JPM) Stock and Buy This Big Bank Play Instead


JPMorgan Chase & Co. (NYSE: JPM) stock seemingly continues to establish all-time highs with each new trading session.

It's one of the largest investment banks in the world, sitting on $2.6 trillion in assets. It navigated the financial crisis better than any other firm on Wall Street.

But here's why if you buy it now, you may miss this more profitable opportunity in banking...

The JPMorgan (NYSE: JPM) Stock Price Faces This $33.8 Trillion Problem

JPM stock price

The JPMorgan Chase & Co. (NYSE: JPM) stock price seems to be breaking out.

Last week, the JPM stock price hit an all-time closing high of $67.01. It's up about 380% since the end of the Great Recession.

But "so what," says one expert. The JPM stock price has some threats coming its way in the near future...

America Has Become a "Banana Republic Run by Wall Street Criminals"

wall street criminals

Wall Street criminals just won't stop misbehaving.
The latest crime was exposed Wednesday. Five of the biggest names in global finance agreed to pay billions to settle lawsuits alleging they illegally gamed the $5 trillion-a-day foreign exchange market.
"America has become a banana republic run by Wall Street criminals," Money Morning Capital Wave Strategist Shah Gilani said on Wednesday.

Of course, history dictates the fines will have no actual effect on business practices. Not including this week’s, just look at the litany of settlements too-big-to-fail banks have shelled out in the last five years alone…

How Much the Banks Were Fined This Week – BCS, C, JPM, RBS, UBS, BAC

Banks Owe

On Wednesday, five of the world's biggest banks pled guilty to manipulating foreign currency rates for their own benefits. They will now pay a combined $5.6 billion in penalties.

With this week's settlements, big banks have now paid more than $60 billion in fines over the past two years.

This chart shows how much the banks were fined this week.

Fines Are a Cost of Doing Business for Big Banks


The cost of criminality is built into the balance sheets of global financial institutions and accordingly priced into their stocks. Five of the world's biggest banks -JPMorgan Chase, Citicorp, Barclays, UBS, and Royal Bank of Scotland - pleaded guilty to currency rigging in the $5 trillion a day foreign exchange market, and settled for fines totaling roughly $5.7 billion (representing the earnings of about a day or two for each bank).

They also received...

Goldman Sachs Stock Price Can't Escape Volcker Rule Time Bomb

goldman sachs stock price

The Goldman Sachs stock price fell yesterday (Thursday) on what was a wildly successful earnings season for the investment banking giant.

Goldman Sachs Group Inc. (NYSE: GS) earnings crushed estimates across the board. But traders on the day were correct in their assessments. GS stock is not one to pile into right now.

In fact, big bank stocks are not the best place to put your money. And Goldman Sachs has its own challenges ahead...

Keith Appears on CNBC's Street Signs

big banks

Money Morning's Keith Fitz-Gerald nails China's GDP growth, gives his quick read on big bank's reported earnings, and cautions against taking a short-term view during any earnings season.

Keith's thoughts as he appears on CNBC...

Bank Stress Tests Prove the Worst History Repeats Itself

Thoughtful Investor

Two out of 31 big banks failed the Fed's bank stress tests. One was Deutsche Bank AG (USA) (NYSE: DB), and the other was Santander Holdings USA Inc (NYSE: SOV-C).

But Santander's biggest U.S. unit manage to sell a boatload of subprime auto loans - worth $712 million.

Here's why this bond deal matters - and how it proves that the worst history always repeats itself...

Bank Stress Test Kabuki Theater Begins Again

bank stress test

Welcome to another performance of "Bank Stress Test" Kabuki Theater - where the whole show, which first started in April 2009, is just a public performance.

In 2014, Bank of America (NYSE: BAC) passed its first round of stress tests with flying colors! For such good capital management, BOA was permitted to reward its shareholders.

But then an issue arose: BOA had miscalculated its capital... by a few billion dollars. And it gets worse than that...

The Truth Behind Central Banks' Machinations

central bank

Central bankers disguise themselves as friendly shepherds. But really it's more of a "wolf guarding the henhouse" situation...

You see, we've been experiencing deflation, not inflation...on a global scale. Why aren't prices rising? Why aren't wages rising? Why is global demand so lackluster?

Well, the answer has to do with central bankers' and how they treat your money...

How to Borrow Cheaply from a Government-Owned Bank


The free market for banking services in the United States isn't a free market at all.

The truth is the biggest commercial banks in America operate with virtual impunity as a government-subsidized, government-protected oligopoly.

So, why don't we drop the pretense that government-owned banks don't belong in a free market economy and create a network of honest state-owned banks to compete with so-called private banks?

We should. In fact, we have an almost 100 year-old U.S. bank as a model to copy.

JPM Stock Price Hit by Earnings Miss – but Bigger Troubles Ahead

JPM stock price

The JPMorgan Chase & Co. (NYSE: JPM) stock price faltered more than 4% on this morning on an earnings miss.

JPMorgan was hit hard by legal fees. The bank, along with several other big banks across the globe, had to cough up just over $1 billion. Most of that stems from a November settlement tied to shady activity in the foreign exchange market. But legal fees are nothing new.

JPMorgan is facing much bigger problems than the routine settlements...

JPMorgan (NYSE: JPM) Is the Latest Target on Goldman Sachs' "Hit List"


JP Morgan (NYSE: JPM) is about to become Goldman Sachs' newest toy. Except its version of "playing" is "smashing it into pieces."

That's right, Goldman Sachs has joined a bandwagon of analysts calling for JP Morgan Chase to break up. And since Goldman Sachs is simply the best at what it does - good and evil - their mission shouldn't be too hard.

Read More…

The Brave New World of Central Bank Tyranny

central bank

Thanks to U.S. Federal Reserve policies that are holding market rates down near zero, you're barely getting one one-hundredth of a percentage point on your cash deposits.

It's bad enough that you're getting practically no yield on your savings. But now the big banks - those greedy fellows that we taxpayers bailed out from a crisis they actually caused - are about to start charging you to deposit money with them. All thanks to policies enforced by the central bankers.

Welcome to the brave new world of central bank tyranny...