- The JPMorgan Settlement: $7 Billion Is Tax Deductible JPMorgan has become the poster child for the excesses of Wall Street. So when the government managed to extract a $13 billion settlement from the Too Big to Fail bank over transgressions related to the kind of mortgage-backed securities that helped cause the 2008 financial crisis, it appeared that finally some justice had been done. But now we find out that JPMorgan still has an ace up its sleeve...
$13 Billion in Fines Add to Long List of JPMorgan Settlements (NYSE: JPM)
This week, JPMorgan Chase & Co. (NYSE: JPM) agreed to a tentative $13 billion settlement over a government investigation into faulty mortgage loans the company sold to investors.
What most investors don't realize is that the company has been involved in 10 other settlements in the last two and a half years. Here's a rundown of JPMorgan's bad behavior since 2011.To continue reading, please click here...
Today's Stock Market News: JPM, NFLX, FSLR, AAPL
Today's stock market news focuses on earnings and the release of a backlog of economic data that was delayed due to the federal government shutdown.To continue reading, please click here...
Big Bank Earnings Today: Wells Fargo (NYSE: WFC) and JPMorgan (NYSE: JPM)
Two of the largest U.S. financial institutions kicked off third-quarter results for big bank earnings today, giving us a peek at how they fared amid tough times for both firms.
Wells Fargo & Co (NYSE: WFC) is in the midst of slashing headcount in its mortgage unit by some 1,800, and JPMorgan Chase & Co (NYSE: JPM) is tangled up in settlement talks with the U.S. Justice Department.
The short story on the banks' earnings: WFC earnings had to use a lot of "accounting gimmickry" to beat earnings-per-share (EPS) expectations, and JPM earnings show the first quarterly loss since Jamie Dimon came on board (he started in 2004 as chief operating officer, then moved to chief executive officer in 2005).To continue reading click here...
- The Best Investments Before the Fed QE Taper Now that it looks like Janet Yellen will succeed Ben Bernanke as chief of the Federal Reserve, investors need to re-think how the Fed under her guidance will affect the markets. Here's what to expect, so you can start planning ahead...
JPMorgan (NYSE: JPM) Talks $11 Billion Settlement; Q3 Earnings at Risk
JP MorganChase & Co. (NYSE: JPM) finds itself in front of regulators yet again for misdeeds.
Chief Executive Officer (CEO) James Dimon was in Washington yesterday (Thursday) attempting to broker a settlement over the bank's sale of substandard mortgages.
Dimon met with U.S. Attorney General Eric Holder about a possible $11 billion settlement in attempts to end criminal and civil charges over JPM's questionable mortgage practices. The U.S. Justice Department said earlier in the week it could file a lawsuit over one of the bank's pending mortgage cases.To continue reading, please click here...
The Chrysler IPO Is a Win-Win for Investors
Chrysler LLC has filed for an initial public offering (IPO), returning to publicly traded status after 15 years in the wilderness of global business uncertainty - and the Chrysler IPO comes at a great time for the company and for the whole American auto industry.
You see, not even five years ago, the Big Three were teetering on the edge of destruction and irrelevance, with dismal sales and empty coffers, running losses in the hundreds of millions on products that nobody wanted. The global financial crisis was the last nail in a coffin more than 10 years in the crafting.To continue reading, please click here...
Silver Prices Today Have Ben Bernanke to Thank
Thanks to that "party animal" Ben Bernanke, silver prices today are enjoying a nice bounce.
That's because the U.S. Federal Reserve chairman, along with the other members at the Federal Open Market Committee (FOMC) meeting yesterday, decided to keep the quantitative easing (QE3) flowing steady with $85 billion of bond buying per month.
After the Fed announcement, silver prices rallied by 5.5% to more than $23 an ounce. That's the precious metal's biggest one-day gain since June 28.To continue reading, please click here...
Five Scandals That Made JPMorgan Wall Street's Worst Villain
Wall Street's Big Banks are hardly known for their good deeds, but JPMorgan Chase (NYSE: JPM) may be the worst of the lot.
For a bank that used to be considered a model citizen among Wall Street institutions, the reversal of reputation has been stunning.
According to The New York Times, at least eight federal agencies are currently investigating JPM. And JPMorgan has more regulatory sanctions against it than any other major U.S. bank.
The damage to JPMorgan's reputation has gotten so bad that it has started to negatively affect the nation's largest bank by assets.
Increased regulatory scrutiny brought on by the scandals has slowed or halted about 60 new projects in JPMorgan's consumer unit, for example. The turmoil also has touched off a series of high-profile departures from the bank.Read More...
Stock Market Today: Biggest Winners and Losers
The stock market today rallied for a second session on hopes lawmakers in Washington will ink a fiscal cliff deal before year's end.
In afternoon trading Tuesday all three major index were sharply higher. The Dow Jones Industrial Average soared some 90 points by 2:30 p.m., the Standard & Poor's 500 Index climbed 11, and the Nasdaq jumped 33. That followed Monday's gains of 100.38 points, 16.78 points and 39.27 points, respectively.
With few economic releases scheduled for Tuesday, investors' focus was pinned on Washington. House Speaker John Boehner, R-OH, and U.S. President Barack Obama continued to haggle over a fiscal cliff deal, with the president making a counter offer late Monday.
To continue reading, please click here... Read More...
JPMorgan Chase (NYSE: JPM) Earnings: 34% Profit Gain Thanks to this Business
JPMorgan Chase (NYSE: JPM) reported third-quarter earnings today (Friday) of $1.40 a share, beating increased estimates of $1.21 a share.
JPM, the largest U.S. bank by assets, earned a record $5.7 billion in the quarter, 34% higher than the $4.3 billion or $1.02 reported for the same period a year ago. The strong revenue results also easily topped forecasts.
The impressive numbers were thanks to the bank's robust and growing mortgage and credit business. Mortgage volume was up 29%, and core loan growth grew 10%.
The notable uptick in both segments bodes well for the housing market and U.S. economy, suggesting the real estate market is staging a recovery and consumers are getting more comfortable spending.
"Importantly, we believe the housing market has turned the corner," CEO Jamie Dimon said in a statement.
As a result of improved mortgage and credit conditions, JPM reduced its reserves (cushion) for loan losses by $900 million.
"All in, we think it's a good quarter for JP Morgan Chase, and other banks should see some of the same benefits," Glenn Schoor, an analyst at Nomura Securities told the Financial Times.
Here's a closer look into the third quarter.
JPM Earnings: London Whale Trade Still a Big Deal
Still under scrutiny from the dicey derivative bets made in the bank's London Chief Investment Office, the bank's losses from the failed hedge strategy grew in the third quarter by $449 million.
Since the trade, dubbed the London Whale, was uncovered in the second quarter, losses have cost JPM some $6 billion. Under the worst case scenario, the bank said the losses could widen by $1.7 billion.
CEO Dimon said in a conference call that the bank doesn't anticipate further losses of that enormity and added that the bank has appreciatively reduced the scope of risks in the underlying portfolio.
Anxious to put the matter to rest and behind him, Dimon called renewed focus on the losses a "sideshow" in an otherwise stellar quarter.
"Hopefully we're not going to be talking about it anymore," he said in a statement.
To continue reading, please click here...
Stock Market Today: Banks Net Record Profits, But Stocks Slip
The stock market today is trying to end what has been a negative week on a positive note.
Markets have traded down all week on global economic concerns and today are being held back by JPMorgan Chase & Co. (NYSE: JPM) and Wells Fargo & Co. (NYSE: WFC) even though the two financial giants posted record earnings.
Here's what's bringing those stocks down and why consumer sentiment is at a five-year high:
- Banks slide amid record earnings- JPMorgan and Wells Fargo each reported record quarterly profits but neither stock is surging on the results. Wells reported third-quarter net income of $4.94 billion, or 88 cents per share, up from $4.06 billion, or 72 cents a year ago and JPMorgan announced third-quarter earnings of 5.71 billion, or $1.40 a share, up from $4.26 billion, or $1.02 a share a year earlier. The record results were spurred by homeowners taking advantage of lower interest rates in order to refinance their mortgages. "The one big positive is clearly mortgage origination revenues," Richard Staite, an analyst at Atlantic Equities LLP in London, told Bloomberg News in an interview before results were announced. "Rates will remain at this level or potentially drop further and ultimately that will drive a recovery in the housing market."
JPMorgan (NYSE: JPM) Earnings Preview: Five Things to Watch
The JPMorgan Chase (NYSE: JPM) earnings report due tomorrow (Friday) gives CEO Jamie Dimon a chance to put the huge trading losses from the "London Whale" behind him.
The "London Whale" trades are the are hedged strategy that went bad and cost the bank nearly $6 billion. JPM took the majority of the hit in the second quarter.
JPM stock tumbled in the weeks that followed after details were uncovered and trading losses swelled. Since then, shares have staged a notable recovery rising from $34.59 on July 11 to the recent price of $42.25.
Now JPM earnings have a chance to shake off the scandal and impress investors.
Expectations have grown for Friday's numbers, with the consensus estimate raised from $1.16 per share to projections of $1.21 per share. Estimates have increased in the last three months from $1.04.
Analysts are predicting earnings of $4.74 per share for the fiscal year, with revenue for the year to come in at $97.76 billion.
The fresh forecasts are 18.6% better from the same quarter a year ago when JPM posted earnings of $1.02 per share.
To continue reading, please click here... Read More...