Posts tagged JPMorgan
Posts tagged JPMorgan
JPMorgan Chase & Co and some of its personnel face a possible enforcement action by the Federal Energy Regulatory Commission over bidding practices in certain markets, the company said on Wednesday.
In March, FERC staff notified JP Morgan that it intends to recommend the action by commission, the company disclosed in a quarterly filing with the U.S. Securities and Exchange Commission.
Last week, the New York Times cited a confidential document from FERC when it reported U.S. government investigators had found evidence that a JPMorgan unit manipulated trading in the California and Michigan electricity markets.
The company has said it will it “vigorously defend” itself and its employees in the matter.
Federal regulators often notify targets of investigations give them a chance to show why enforcement actions should not be brought.
JPMorgan also said that upcoming actions by regulators could include orders concerning consumer collections and sales of identity-theft protection products.
The quarterly filing also showed that the company slightly trimmed its estimate of possible legal liabilities in excess of reserves to $6 billion at the end of March from $6.1 billion three months earlier.
JPMorgan Chase & Co.’s (JPM) wrong-way bets on derivatives are the focus of an escalating probe by a U.S. Senate panel led by Carl Levin that has grilled executives from banks including Goldman Sachs Group Inc. and HSBC Holdings Plc, three people briefed on the inquiry said.
Levin’s Permanent Subcommittee on Investigations is seeking testimony from people who worked in or helped lead JPMorgan’s chief investment office, according to the people, who declined to be identified because the inquiry isn’t public. The unit’s London staff lost at least $5.8 billion this year on the botched bets, which were large enough to shift markets. Source: Bloomberg
The European Central Bank would have the sole power to grant banking licenses under proposals to give it supervisory powers and build a euro-area banking union, a European Union official said.
Federal Communications Commission Chairman Julius Genachowski will propose altering how the agency judges whether airwaves purchases by wireless providers raise anti-competitive concerns, two officials said.
Citigroup Inc. will let customers challenge the suspension of home-equity loans and provide $120 apiece to some ex- borrowers whose credit lines were cut, under the settlement of a lawsuit challenging its practices.
JPMorgan Chase & Co. was accused in a lawsuit of manipulating clients’ foreign-exchange transactions for its own benefit.
Oh no, everyone, terrible news: Wall Street is now officially leaderless in its fight to protect the American economy from the horrors of regulation.
That is according an alarming report on Tuesday from Bloomberg, which says that JPMorgan Chase CEO Jamie Dimon, Wall Street’s de facto champion, is having a hard time making his voice heard these days. Apparently the egg covering his face after his bank lost $6 billion, give or take, on dumb credit-derivative bets has formed a mask-like crust that even Dimon’s superhuman levels of hot air cannot penetrate:
“What you’re seeing in the financial-services industry is a lack of any kind of credible statesmen,” said Rakesh Khurana, a management professor at Harvard Business School in Boston. Dimon’s diminished ability to defend the industry publicly “basically leaves a vacuum,” he said.
And it only got worse throughout the summer.
During the month of June, the bank’s CEO Jamie Dimon was grilled before the Senate Banking Committee and the House Financial Services Committee. He maintained that it was an ”isolated incident” and said “senior management and myself should have better monitored the CIO office.”
What’s more is when the bank released its Q2 earnings results on July 13th, it was revealed that the trading loss was $5.8 billion. The bank also had to restate its Q1 net income saying it was $459 less than previously reported.
Customers including Knight Capital, Citadel’s retail facing arm and Citi claimed to have lost millions from trading shares of the social network.
What’s more is Facebook shares were priced at $38 a piece and these days they’re trading below $22 a share.
Mario Tama/Getty Images
At the time, our Editor-In-Chief Henry Blodget who has more than 20 years experience in the tech IPO business, called it “a highly unusual and negative event.”
Following the Facebook IPO fiasco, Morgan Stanley’s CEO James Gorman defended his bank on CNBC saying they acted “with great integrity.” He added that Facebook investors will just have to be a little bit patient.
Read More: Businessinsider
The JPMorgan Chase CEO is really, really, really sorry. Except when he’s not.
Even here, on his own turf, they are giving Jamie Dimon a hard time.
“Um, yeah, my question is kind of broad?” begins a gawky guy who identifies himself as a Tufts student interning in Client Solutions. “Earlier this summer we had the LIBOR scandal that was involved with a lot of the big banks and led to the resignation of the CEO from Barclays. More recently we had Sandy Weill saying the banks needed to be broken up. With the banks so big, how is it possible to monitor every aspect?”
Next up is a scruffy-haired kid from the University of Miami: “With banking in a secular or cyclical decline, do you truly believe that this is a good place for us to start our careers, considering all of the other opportunities available to us?” he asks.
“In an industry associated with surprisingly low standards … ” a woman from Emory University starts to say.
“Whoa, whoa, whoa,” the JPMorgan Chase CEO interrupts, leaning into the microphone and peering out at the several hundred summer interns, sweating in their first business clothes, that have gathered in the auditorium of the former Bear Stearns building for a friendly Q&A session with the boss. “Before you go to the next level of generalizing, saying, ‘all bankers,’ ‘all banks.’ I don’t like that.”
Read More: NYMag
JP Morgan Chase’s Biggest Problems
Jamie Dimon probably wishes he were more like Jay-Z: It must be nice to have only 99 problems.
His bank, JPMorgan Chase, the biggest bank in the U.S., unveiled a long list of lawsuits and regulatory probes in a filing with the Securities and Exchange Commission on Thursday.
One of the most noteworthy was the fusillade of subpoenas and lawsuits hitting the bank from around the world as part of its alleged involvement in the manipulation of Libor, a key lending rate.
But Libor is far from the bank’s only problem: It is being sued and investigated for everything from its $5.8 billion loss on crazy credit derivatives bets to its alleged manipulation of electricity markets. “The lawsuits and investigations in which JPMorgan is ensnarled consume eight pages of the firm’s quarterly filing (10Q) and more than 9,000 words,” Pam Martens of Wall Street On Parade calculated. “Anyone reading the details would be right to question if JPMorgan is a bank or a mega legal defense fund.”
The bank has spent $3 billion on litigation so far this year, she notes, or more than half its London Whale loss. Without further ado, here’s a list of some of the pickles JPMorgan has gotten itself into.
This isn’t even the full list — just the more colorful ones.
Click here for JP’s problems:Huffingtonpost
Even though the major banks and trading firms are under intense scrutiny, they still rely quite heavily on trading activities to make money. And as JPMorgan’s “London whale” and a string of other banks have demonstrated, these institutions have a tough time keeping tabs on the amount of risk they are taking amid increasingly complex and fast market.
In many cases, a single set of mistakes was felt by the entire bank – and in a few instances the entire banking community – making it is clear that many risk factors involved are often completely overlooked, misunderstood or that banks are unable to manage them.
The recent “technology breakdown” at Knight Capital extends the paradigm of things that can go really bad, really quickly for financial firms in terms of their technology and trading. After all, it is not very hard to conceive a situation where a rogue trader (as in the case of UBS last year), a poorly thought through hedging strategy (as in the case of JPMorgan Chase this May) or a glitch in the systems of a stock exchange (with UBS unfortunately being on the receiving end yet again, this time during the Facebook IPO) actually brings the bank to its knees.
Read More: Forbes
Three JPMorgan Chase & Co. (JPM) investment bankers are leaving for Evercore Partners Inc. (EVR) and Centerview Partners LP, the latest dealmakers to depart a global lender for a merger advisory boutique.
Barrett “Brett” Pickett and Lowell Strug, who advised restaurant and other consumer companies at New York-based JPMorgan, are joining Evercore in the coming weeks, according to three people with knowledge of the matter. Adam Beshara, 38, who worked with manufacturers such as ITT Corp., starts at Centerview today, firm co-founder Blair Effron said.
Evercore and Centerview, both based in New York and started by veterans of some of Wall Street’s biggest banks, focus on advising large corporate clients on mergers and capital structure rather than trading or lending.
They’ve been hiring amid pay cuts and firings at the bigger firms.
Source: Yahoo Finance News
This spring has seen a veritable festival of revelations of illegal, stupid, and dishonest behavior by some of the largest banks in the world. There’s the massive trading loss at JPMorgan, originally quoted at $2 billion, now up to $5.8 billion at latest count. There’s the laundering of drug and terrorism money by HSBC. And, most spectacularly, there are the admissions of LIBOR-rigging at Barclays, and ongoing investigations at many other banks.
Note that JPMorgan, HSBC, and Barclays were all supposed to be “good” banks that made it through the crisis wearing halos compared to the supposed “bad” banks like Citigroup, Bank of America, and RBS.
Source: The Atlantic
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JPMorgan Chase allegedly called John and Anna Canaday 15 to 75 times a week between 2009 and 2012, claiming they were at risk of losing their home to foreclosure, according to a lawsuit filed by the couple earlier this month. The Canadays, both over 65 years old, claim they aren’t late on their mortgage payments (h/t: Courthouse News).
“It defies logic what seems to be happening here,” James McKiernan, the Canaday’s attorney, told The Huffington Post. “They brought in letters and dunning notices and it just continues. As I see it, they are fully current on all their obligations.”
The lawsuit alleges that the couple met with their local District Attorney and, with the DA’s advice, sent a cease and desist letter to the bank. Though the bank acknowledged that they received the letter, the harassment continued, according to the lawsuit.
Source: Huffington Post
JPMorgan Chase & Co (JPM.N) Chief Executive Jamie Dimon reshuffled managers just below him, signaling that the biggest U.S. bank is preparing for life after its famed boss.
The moves come two weeks after JPMorgan said it had lost nearly $6 billion from bad derivatives trades on corporate debt, representing a huge black eye for a chief executive long praised for his risk-management skills.
The management moves will mean a number of senior positions are jointly held by two executives. Analysts said the shared responsibility is a response to the trading losses that came from the bank’s chief investment office.
Volcker To Dimon: Just Give Up Your Banking License And We’re Cool
Just a couple weeks before Jamie Dimon announced publicly that his banking firm JPMorgan had lost a stunning $2 billion betting with depositor funds, he took to Fox News to criticize the Volcker Rule, meant to ban federally backstopped banks from engaging in proprietary trading. Bill Moyers invited former Fed chairman Paul Volcker — the architect of the rule — to respond.
Prince - Scandalous
Banking suffers another blow as scandals pile up
The sequel to the financial crisis is under way, and there are no prizes for guessing who has been cast in the role of villain.
It has been a very bad few weeks for banking. The walk of shame has included employees tarred as rate-manipulators (Barclays PLC), money launderers (HSBC Holdings PLC), rogue traders (JPMorgan Chase & Co.), and outright fraudsters (Peregrine Financial Group Inc.).
The drumbeat of controversy is far more than an image problem for the banking industry. Four years after the financial crisis began, the pile-up of bad behaviour is feeding a sense that something remains deeply awry inside banks, despite efforts by governments to reform them.
Source: The Globe and Mail