Monday, May 21, 12:24 PM
The FDIC sues JPM, C, BAC, and DB in New York, acting as receiver for Strategic Capital Bank which claims $11M in losses in MBS-related losses.
3 Comments[Financials]
Monday, May 21, 8:10 AM
JMP Securities cuts the TBTF banks due to the European crisis, with analyst David Trone's base case scenario (60% chance) seeing a Greek exit, but no contagion. He sees just a 10% chance Greece stays in the EMU. That leaves 30% for exit, but with contagion.
3 Comments[Financials]
Wednesday, May 16, 11:30 AM
Although Universal Music's (VIVHY.PK) acquistion of EMI's (C) recorded music ops would give it 40% of the market, it's not totally clear to regulators that the deal is anti-competitive. The record giants no longer have the command they once had, so the argument goes, due to piracy and the pricing power of the likes of Amazon and Apple.
Comment![Tech, Consumer]
Monday, May 14, 4:57 PM
Among the new positions added by David Tepper's Appaloosa Management in Q1 are Bank of America (BAC), Citigroup (C) and Hartford (HIG). Tepper also likes a couple of mortgage REITs, taking new positions in Chimera (CIM) and Two Harbors (TWO). (13-F)
19 Comments[Financials]
Friday, May 11, 10:06 AM
Banks that are too big and too complex to control operations "are too big. Period." - Dallas Fed President Fisher today, following a speech lauding the banks and economy of Texas. The Dallas Fed has been highly vocal of late about ending TBTF, suggesting not just the reasons, but also the way to go about it.
12 Comments[Financials]
Friday, May 11, 9:15 AMMarket preview: JPMorgan’s revelation of a $2B trading loss is weighing on the broader market, with S&P futures -0.8%; European markets are broadly lower too. Bank stocks are hit hard, as the debacle hands ammunition to boosters of more banking regulation: JPM -8.3%, BAC -2.3%, C -4%, GS -3.2%, MS -3.2%, WFC -1.7%. Still ahead: consumer confidence.
2 Comments
Friday, May 11, 7:11 AM
"An event like this also gives regulators more firepower in arguing their case for tighter banking regulations," writes Deutsche Bank's Jim Reid of JPMorgan (JPM), maybe partly explaining why the other big banks are dropping in concert. "Questions around internal risk controls, risk management and strategy will arise," and then there's the ratings agencies. (see also)
9 Comments[Financials]
Thursday, May 10, 5:23 PM
Other banks AH on the JPMorgan news: BAC -3.2%, C -3.2%, GS -2.4%, MS -3.1%. Banking ETF: XLF -2%.
22 Comments[Financials]
Thursday, April 26, 8:30 PM
Wall Street may have to carve off another 10%-12% of its staff if it hopes to achieve higher profitability targets this year, according to a recent report by the Boston Consulting Group. The cuts may include pay reductions as well, particularly for those in the upper ranks, as financial institutions struggle to wring profit from ROEs still languishing in the single digits.
6 Comments[U.S. Economy, Financials]
Thursday, April 26, 11:55 AM
Bruce Berkowitz's Fairholme Fund unloaded the rest of its stake in Citigroup (C) as of Feb. 29. The fund maintained holdings in AIG, BAC, and CIT. Fairholme had an ugly 2011 thanks to its concentration in financials, but is up 27% YTD (-14.8% Y/Y).
5 Comments[Financials]
Thursday, April 26, 12:45 AM
With a bidding deadline this morning, some of the biggest banks (including CS, GS, C, BAC, MS, BCS, DB) are jockeying to buy $7.5B in face value of Maiden Lane CDOs. Demand is incredibly high, despite the fact that repackaging these particularly complex securities will be a challenge.
5 Comments[Financials]
Wednesday, April 25, 3:31 PM
Citigroup (C) is given SEC and FINRA approval to appoint Kevin McCaffrey chief of equity sales in the Americas. McCaffrey was fined and suspended in 2005 for failing to properly supervise Jack Grubman when he was issuing "fraudulent and misleading" research reports during the telco bubble.
1 Comment[Financials]
Wednesday, April 25, 2:11 AM
With five major banks facing potential downgrades from Moody's - and $22B in extra costs - CEOs are pushing back against the ratings agency with an aggressiveness not seen since before the financial crisis. Sources say Brian Moynihan (BAC) and Vikram Pandit (C) have even argued against the downgrades in person. (see also)
9 Comments[Financials, Top Stories]
Friday, April 20, 6:01 AM
"To some extent what we saw in the 2007, 2008 crash was the result of the throwing off of Glass-Steagall." That's not from an Occupy Wall Street protestor but from Richard Parsons, who's just ended his term as Citigroup (C) Chairman and was on its board for 16 years. "Why didn’t he do something about it when he had a chance to?" asks an analyst. Quite.
7 Comments[Financials]
Wednesday, April 18, 2:55 PM
Argentina's billionaire Eskenazi family risks default on more than $2B of debt after the government seized control of YPF and said dividends probably would be reinvested. The family's Petersen Group, which owns 25% of YPF, owes Repsol (REPYY.PK) $1.9B; it counted on YPF dividend payments of as much as 90% of profit to repay Repsol and ~$680M of loans with banks including Citigroup (C).
2 Comments[Energy, Global & FX]
Wednesday, April 18, 11:13 AM
The NY Fed asks eight dealers to bid for assets from Maiden Lane III, which, during AIG's (AIG) rescue, unwound CDSs that the company wrote by acquiring the underlying investments that the firm insured for banks. Those invited to the auction include Barclays (BCS), Citigroup (C), Goldman Sachs (GS), Merrill Lynch (BAC), and Morgan Stanley (MS).
Comment![Financials, M&A]
