|Bid||120.03 x 900|
|Ask||120.04 x 1200|
|Day's Range||119.41 - 120.34|
|52 Week Range||91.11 - 120.40|
|Beta (3Y Monthly)||1.19|
|PE Ratio (TTM)||12.27|
|Earnings Date||Oct 15, 2019|
|Forward Dividend & Yield||3.60 (3.01%)|
|1y Target Est||119.08|
Mary Erdoes, Chief Executive Officer of Asset & Wealth Management at JPMorgan Chase & Co., will present at the Bank of America Merrill Lynch Future of Financials Conference at The St.
(Bloomberg) -- JPMorgan Chase & Co. hit a major milestone in its business that caters to the world’s largest hedge funds. And now the bank has even loftier goals.Global customer prime balances jumped 25% this year to surpass $500 billion, according to an internal memo seen by Bloomberg News. “Next stop $1 trillion!” executives including Jonathan Cossey and Charles Chiang, co-heads of prime finance, said in the note on Wednesday. JPMorgan confirmed its contents, declining to comment further.The biggest U.S. bank has invested heavily in electronic trading and boosted its prime brokerage to climb the ranks in stock trading during the past five years. The firm was second among global banks in prime services revenue in 2018, according to data from Coalition Development Ltd., and JPMorgan said in July that client balances hit a record.Prime brokerage units handle relationships with hedge funds, offering trading services and lending securities, and can often be the foundation of banks’ trading units.New capital rules following the financial crisis made the business less profitable and pushed some banks to shed selective clients and look to grab a bigger share of large funds’ business. The JPMorgan target comes just as Deutsche Bank AG, one of the biggest players servicing hedge funds, said it was exiting the business as part of a wide scale restructuring plan.“We continue to gain market share with existing clients, onboard new managers, have made a noticeable splash in the start-up space and our future remains bright with a strong pipeline of new business,” Cossey and Chiang said.The world’s biggest banks generated about $18.3 billion of revenue from prime services in 2018, an 8% increase on a year earlier, according to data from Coalition. Morgan Stanley was the industry’s biggest player followed by JPMorgan and then Goldman Sachs Group Inc., the data show.\--With assistance from Donal Griffin.To contact the reporter on this story: Viren Vaghela in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Ambereen Choudhury at email@example.com, Michael J. MooreFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
JPMorgan Chase is opening two more local branches as part of a plan to have 24 Philadelphia-area locations up and running by the end of the year. Chase, which entered the competitive Philadelphia retail market last September with plans to open 50 branches in the next five years, has also hired 270 retail employees, including 180 in the city of Philadelphia. JPMorgan has seven local branches open so far in Camden, Wilmington, Villanova, Cinnaminson, 17th and Walnut streets in Center City and last week at 17th and JFK streets in Center City across from the Comcast Center. This week, the bank opened a location at the northwest corner of Broad St. and Washington Avenue in South Philadelphia — the site of a high-profile mixed-use real estate project called Lincoln Square, that also includes 322 apartments and a Target and Starbucks.
Benchmarks closed mixed on Wednesday as the Federal Reserve cut federal funds rates by a quarter percentage point, but gave mixed signals for further cuts this year.
The Fed seeks to remain focused on analyzing incoming economic data to determine future moves. Heathy domestic economy and several streamlining efforts are likely continue supporting bank stocks.
J.P. Morgan’s (JPM) Interbank Information Network (IIN®) has expanded dramatically over the last 12 months, as more than 330 banks have signed up to be part of IIN – including Deutsche Bank. “The intent with IIN was always to develop a meaningful ecosystem of bank users, all focused on harnessing emerging technologies such as blockchain to better address the complex cross border payments industry,” said John Hunter, Global Head of Clearing for JPMorgan Chase. J.P. Morgan is exploring new applications that can be deployed across the network as well as empowering IIN participant banks to be part of a developer ecosystem in which they can develop their own solutions for possible use across the network.
The Bank of England struck a dovish tone on interest rates on Thursday, raising the prospect it might seek to cut them if Brexit uncertainty persisted in a weak global economy. The bank’s Monetary Policy Committee unanimously voted to keep rates on hold at 0.75 per cent and for the first time said if there was “entrenched uncertainty” over Brexit, “domestically generated inflationary pressure would be reduced”. The BoE would normally be expected to cut rates if domestic inflation persisted below its 2 per cent target and underlying economic growth was, as the bank put it, only “slightly positive”.
The Fed cuts target interest rate by 25 bps to a range of 1.75-2%, a widely expected move to sustain the decade-long economic expansion amid trade concerns.
As was widely expected, the Federal Reserve lowered interest rates today by 25 basis points, but that wasn't enough to spark upside for equities. Nor was it enough for President Donald Trump who criticized the Fed for lacking "sense" and "vision" because it didn't lower rates by 50 basis points.Source: rafapress / Shutterstock.com Three Fed governors voted against today's rate cut, prompting some investors to express concern about the path forward."In determining the timing and size of future adjustments to the target range for the federal funds rate, the Committee will assess realized and expected economic conditions relative to its maximum employment objective and its symmetric 2 percent inflation objective," the Federal Open Market Committee wrote in a statement.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThis assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and expectations, and readings on financial and international developments.So today the Nasdaq Composite slipped 0.1% while the S&P 500 added just 0.03%. The Dow Jones Industrial Average gained 0.1%. In late trading, half of the Dow stocks were pointed higher. The only sector in the U.S. that closed higher today was, unsurprisingly, utilities. Small Winners CircleThere weren't many Dow winners today and among that small group, the gains were, well, small. One surprise was JPMorgan Chase (NYSE:JPM). Financial services stocks usually benefit from higher interest rates, and JPM and its rival banks have recently been complaining about the effects lower rates have on their net interest margins. In late trading JPM was the only financial services name in the Dow trading higher. * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars Another surprise, though of the disappointing variety, was Merck (NYSE:MRK). This Dow component barely nudged higher despite some encouraging news about its Keytruda cancer treatment. Regulators in Australia, Canada and the U.S. approved Keytruda to treat advanced endometrial carcinoma.This is significant news, but the stock barely moved higher today. Hey, it's not everyday three major developed markets approve a cancer treatment on the same day."Merck said regulators approved the use of Keytruda with a drug called Lenvima, discovered by the Japanese company Eisai (OTCMKTS:ESALY), to treat some instances of advanced endometrial carcinoma, a serious condition for which patients currently have few options," Josh Nathan-Kazis wrote for Barron's.Procter & Gamble (NYSE:PG) was a Dow winner today, and like the others, it was in modest fashion. P&G is one of the Dow's best-performing names this year. And some traders are getting bullish about options on the consumer goods giant's shares. Apple, AgainYes, Apple (NASDAQ:AAPL) has been making a lot of appearances here in recent days -- and the iPhone maker is back today. Wedbush released a note earlier today forecasting 185 million in iPhone 11 shipments for fiscal 2020. Analysts also wrote that pre-orders for the phone in the U.S. have been strong.Up nearly 8% this month, Apple has been one of the best-performing Dow stocks in September. Bottom Line on the Dow Jones TodayIt's clear that market participants are focusing on the Fed's division. However, because the central bank did not cut by 50 basis points today, it has another 25 basis point cut in its back pocket. Chairman Jerome Powell overtly said that the Fed can deploy more rate reductions if the economy sours, which he doesn't see happening right now.Speaking of the economy, the Fed upped its 2019 gross domestic product forecast to growth of 2.2%. That's up slightly from June's estimate of 2.1%. For now, the central bank is standing firm on its forecast of 2% GDP growth in 2020.As of this writing, Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars * 5 Stocks to Buy With Great Charts * 5 Goldman Sachs Stocks to Buy with Over 20% Upside Potential The post Dow Jones Today: Fed Obliges, Stocks Don't appeared first on InvestorPlace.
Shares of Bank of America (NYSE:BAC) are up 22% year-to-date, putting the stock ahead of the Financial Select Sector SPDR (NYSEARCA:XLF), the largest financial services exchange-traded fund, by about 220 basis points.Source: Andriy Blokhin / Shutterstock.com Impressively, Bank of America stocks is up nearly 11% this month. Prior to today's Federal Reserve rate cut announcement, an array of banks, including BAC, warned about the impact of lower interest rates on net interest margins during their second-quarter earnings calls. In fact, that issue was one of the primary takeaways from banks' most recent round of of earnings updates.Bank of America rivals, such as JPMorgan Chase (NYSE:JPM) and Wells Fargo (NYSE:WFC), are already complaining that lower interest rates are weighing on earnings. All that simply because of a mere eight-basis point squeeze (on average) in net interest margins.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAs is the case with its competitors, lower rates are a real consideration with Bank of America. And they likely explain why analysts have recently grown bearish on the name. On Aug. 29, Raymond James lowered its rating on Bank of America stock to "market perform" from "outperform." A week later, Keefe, Bruyette & Woods did the same thing, while slashing its price target on BAC stock to $29 from $36. The shares closed just under $30 on Sept. 17."… in a falling rate environment where the yield curve remains inverted, we believe that creates an environment where it will be difficult for shares to outperform and a Market Perform is appropriate," said KBW's Brian Kleinhanzl. Dueling Views On BAC StockOther headwinds for Bank of America stock include speculation that the economy is slowing and the lingering U.S.-China trade war. Those two issues are joined at the hip. If the U.S. and China cannot come to terms on trade, both economies will suffer. If the U.S. economy languishes, lending will contract, putting further strain on the financial services sector.Additionally, the Fed is said to be "data dependent." This means that economic reports revealing a slowing economy, will prompt the central bank to step in, likely with lower interest rates. This would further suppress interest margins for money center banks. * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars One area of good news is that, in recent weeks, President Donald Trump appeared eager to work with China on trade, even implying that a resolution could be realized over the near term.Another factor, albeit wider-ranging in nature, is the recent rotation out of growth stocks into value names. BAC stock is a value play. The S&P 500's Value Index allocates 21.8% of its weight to financial stocks, about 550 basis points more than the benchmark's second-largest sector allocation.At 9.9 times forward earnings and 1.1 times book value, BAC stocks fits the bill as a value name -- and one that could benefit from a lengthy growth-to-value rotation. The Bottom Line on Bank of America StockThe Fed has set the stage for banks to boost buybacks and dividends. Yielding just 2.4%, Bank of America stock has ample room for dividend growth.Additionally, BAC has enviable market positions across an array of pivotal financial services and products. According to Morningstar, Bank of America is racking up accolades in investment banking, credit cards and several other financial services.That gets investors to a compelling long-term story with short-term macro issues with Bank of America stock.As of this writing, Todd Shriber owns shares of XLF. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars * 5 Stocks to Buy With Great Charts * 5 Goldman Sachs Stocks to Buy with Over 20% Upside Potential The post Bank of America Burns Savers, But Investors May Like BAC Stock appeared first on InvestorPlace.
Unlike many data and cloud equities, Splunk (NASDAQ:SPLK) stock has struggled in recent weeks. The shares of the developer of Splunk Enterprise, a data analysis solution, have dropped amid worries about its acquisitions and concerns about its cash flow.Source: Michael Vi / Shutterstock.com However, by buying Splunk stock at these levels, traders may get something they do not expect from data and cloud stocks today: a discount.Many of the stocks in those sectors seem to do nothing but move higher. Given the performance of many of Splunk's peers, one might think that all of the stocks in the sector, including SPLK, keep making 52-week highs and have achieved outlandish price-earnings (P/E) ratios.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars However, many data and software-as-a-service (SaaS) firms such as Salesforce (NYSE:CRM) and SAP (NYSE:SAP), have fallen below their 52-week highs. But those companies have not fallen as far as Splunk stock. While CRM stock has dropped by about 9% and SAP has retreated around 15%, SPLK stock has tumbled more than 18% below its 52-week high. Why Splunk Stock fellOne reason for the decline of Splunk stock was concern that its acquisition of SignalFx would dilute the shares. That feeling likely worsened after SPLK announced earlier this month that it would also buy Omnitron. There is some uncertainty as to how these deals will affect the cash, debt, and shares outstanding of SPLK.Moreover, like Autodesk (NASDAQ:ADSK) in recent years, SPLK has begun to switch from a permanent license model to a subscription revenue model. Although the change should result in SPLK generating more revenue over the long-term, such a decision usually leads to a temporary reduction of cash flow.In the wake of fears about its acquisitions, Splunk stock has tumbled from its $143.70 per share high in mid-July to about $116 per share today.However, I see the moves made by SPLK as positive. Many commentators will often criticize firms for putting their short-term profits ahead of their longer-term needs and those of their shareholders. In this case, in an effort to improve its offerings, SPLK has bought other companies. It also switched to a subscription revenue model that should increase its cash flows over the long-term.Still, instead of rewarding the company, traders briefly took SPLK stock into bear-market territory. I believe that the unjustified decline of Splunk stock has created a good buying opportunity. The Case for SPLK StockThe forward P/E ratio of Splunk stock may look high, compared to the S&P 500's average forward P/E ratio. Still, given the high expected growth of Splunk's future earnings, the forward P/E ratio of Splunk stock, which currently stands at 49, looks reasonable. For fiscal 2019, analysts, on average, expect Splunk's earnings to jump 43.6%. In FY20, analysts, on average, predict that its profits will surge nearly 25%.Moreover, yesterday SPLK stock rose by more than 2% after JPMorgan's Mark Murphy upgraded the shares to an "overweight" rating. Thanks to the reduction in the stock price, he sees Splunk stock as attractive. Murphy has placed a $130 price target on SPLK.Like Murphy, I think there are reasons why Splunk's rapid growth should continue. For one, all things cloud are still growing almost exponentially. Moreover, as InvestorPlace columnist Luke Lango noted, "more and more customers are leaving bigger and bigger digital footprints." Consequently, SPLK remains well-positioned to expand its customer base at a rapid pace.Investors should also note that the price-sales ratio of SPLK is 8.6, well below the shares' average P/S multiple of the last five years, which is 11.4. The Bottom Line on Splunk StockThe JPMorgan upgrade highlights the buying opportunity created by the weakness of Splunk stock. Although buying companies and switching to subscription-based plans will hurt SPLK in the short-term, the moves should improve its performance over the longer term.The weakness of SPLK stock gives traders the chance to buy this growth name at a below-average multiple. Investors should take advantage of this opportunity and consider using any additional pullbacks of SPLK stock to buy the shares at an even larger discount,As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars * 5 Stocks to Buy With Great Charts * 5 Goldman Sachs Stocks to Buy with Over 20% Upside Potential The post Investors Should Exploit the Weakness of Splunk Stock appeared first on InvestorPlace.
The headline "The Stock-Buyback Swindle" says it all. The Atlantic magazine's August issue had a story about how American companies are spending trillions on stock buybacks to enrich their CEOs. Much of the article's content has been covered extensively by business media -- both the pros and cons -- so I won't rehash the arguments. However, one of author Jerry Useem's paragraphs bears repeating because it hits at the core of the problem."Corporations describe the practice as an efficient way to return money to shareholders," Useem wrote. "By reducing the number of shares outstanding in the market, a buyback lifts the price of each remaining share. But that spike is often short-lived: A study by the research firm Fortuna Advisors found that, five years out, the stocks of companies that engaged in heavy buybacks performed worse for shareholders than the stocks of companies that didn't."InvestorPlace - Stock Market News, Stock Advice & Trading TipsI've always believed that if a company wants to allocate its free cash flow to shareholders, it should do so by paying a special dividend, not by repurchasing shares or paying a regular dividend. * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars Stock buybacks distort earnings growth while regular quarterly dividends ratchet up shareholder expectations. Neither is good for the long-term health of a business. But it's especially galling when stock buybacks enrich a CEO at the expense of the rank-and-file employees.Love them or hate them, these 10 companies are making their CEOs rich. Stock Buybacks Making CEOs Rich: Oracle (ORCL)Source: JHVEPhoto / Shutterstock.com According to the Equilar 200 study, Oracle (NASDAQ:ORCL) co-CEOs Mark Hurd and Safra Catz earned a combined $298 million in total compensation in fiscal 2017 and 2018, of which approximately 96% came from stock grants and option awards. In 2018, Hurd and Catz were paid 1,205 times the company's median pay of $89,887. As a tandem, Hurd and Catz own 49.7 million shares, which are worth $2.7 billion at current prices. The duo's compensation in 2017 and 2018 fails to take into consideration the amount paid through vested shares. Catz received $158 million in shares that vested in fiscal 2018 alone. As for share repurchases, the company repurchased $51 billion of its stock over the past three fiscal years, reducing its share count by 14%. Not surprisingly, its earnings per share increased by 43% over the same period. JPMorgan (JPM)Source: Bjorn Bakstad / Shutterstock.com JPMorgan (NYSE:JPM) CEO James Dimon earned $58 million in total compensation in fiscal 2017 and 2018, approximately 77% of it from stock grants. In 2018, Dimon was paid 381 times the company's median pay of $78,923.Dimon owns 10 million shares if you include options, which are worth $1.2 billion at current prices. In 2018 alone, the JPMorgan CEO had $11 million in stock vest on top of his total compensation for the year. As for share repurchases, the company repurchased $44.5 billion of its stock over the past three fiscal years, reducing its share count by 10%. JPMorgan increased its earnings per share by 50% over the same period. Microsoft (MSFT)Source: gguy / Shutterstock.com Microsoft (NASDAQ:MSFT) CEO Satya Nadella earned $46 million in total compensation in fiscal 2017 and 2018, approximately 61% of it from stock grants and option awards. In 2018, Nadella was paid a relatively reasonable 154 times the company's median pay of $167,689.Nadella owns 2.9 million shares if you include options, which are worth $393.6 million at current prices. In 2018 alone, Nadella had $25.8 million in Microsoft stock vest on top of his total compensation for the year. As for share repurchases, the company repurchased $42 billion of its stock over the past three fiscal years, reducing its share count by 3%. That's not surprising given how much stock the company issues to employees for a job well done. Microsoft managed to increase its earnings per share by 98% over the same period. Merck (MRK)Source: JHVEPhoto / Shutterstock.com Merck (NYSE:MRK) CEO Kenneth Frazier earned $38 million in total compensation in fiscal 2017 and 2018, approximately 68% of it from stock grants and option awards. In 2018, Frazier was paid 215 times the company's median pay of $82,173.Frazier owns 3.7 million shares if you include options, which are worth $307.5 million at current prices. In 2018 alone, the Merck CEO had $41.3 million in stock vest on top of his total compensation for the year. As for share repurchases, the company repurchased $16.5 billion of its stock over the past three fiscal years, reducing its share count by 6%. Merck managed to increase its earnings per share by 49% over the same period. However, its GAAP results have been very choppy over the past decade. You'll want to take this with a grain of salt. Apple (AAPL)Source: View Apart / Shutterstock.com According to the 2018 version of the Equilar 200, a list of the 200 highest-paid CEOs in America, Apple (NASDAQ:AAPL) CEO Tim Cook made $29 million in total compensation in fiscal 2017 and 2018, none of it from stock grants or options. In 2018, Cook was paid 283 times the company's median pay of $55,426. However, one needn't feel sorry for Cook. He owns 878,425 shares of Apple stock worth $198 million as (as of Sept. 12). In addition, Cook has had more than a million shares of AAPL stock vest in the last two years alone. This means his compensation for 2017 and 2018 was actually much higher than $29 million. As for share repurchases, the company repurchased $135.3 billion of its stock over the past three fiscal years, reducing its share count by 14%. Not surprisingly, its earnings per share increased by 29% over the same period. Bank of America (BAC)Source: 4kclips / Shutterstock.com Bank of America (NYSE:BAC) CEO Brian Moynihan earned $43 million in total compensation in fiscal 2017 and 2018, approximately 93% of it from stock grants and option awards. In 2018, Moynihan was paid 247 times the company's median pay of $92,040.Moynihan owns 3.4 million shares if you include options, which are worth $100.9 million at current prices. In 2018 alone, Moynihan had $23.1 million in stock vest on top of his total compensation for the year. As for share repurchases, the company repurchased $38 billion of its stock over the past three fiscal years, reducing its share count by 9%. Bank of America increased its earnings per share by 99% over the same period. eBay (EBAY)Source: Mano Kors / Shutterstock.com eBay (NASDAQ:EBAY) CEO Devin Wenig earned $36 million in total compensation in fiscal 2017 and 2018, approximately 82% of it from stock grants and option awards. In 2018, Wenig was paid a 152 times the company's median pay of $119,562.Wenig owns 1.7 million shares if you include options, which are worth $67.5 million at current prices. In 2018, Wenig had $18.8 million in eBay stock vest on top of his total compensation. As for share repurchases, the company repurchased $10.1 billion of its stock over the past three fiscal years, reducing its share count by 19%. eBay increased its earnings per share by 80% over the same period. Qualcomm (QCOM)Source: photobyphm / Shutterstock.com Qualcomm (NASDAQ:QCOM) CEO Steven Mollenkopf earned $32 million in total compensation in fiscal 2017 and 2018, approximately 75% of it from stock grants and option awards. In 2018, Mollenkopf was paid a 233 times the company's median pay of $85,592.Mollenkopf owns 679,813 shares if you include options, which are worth $53.8 million at current prices. In 2018 alone, the CEO had $12.9 million in stock vest on top of his total compensation for the year. As for share repurchases, the company repurchased $27.8 billion of its stock over the past three fiscal years, reducing its share count by 11%. Qualcomm decreased its earnings per share by 203% over the same period. On a non-GAAP basis, it decreased earnings per share by 21%. Pfizer (PFE)Source: Manuel Esteban / Shutterstock.com Pfizer (NYSE:PFE) CEO Ian Read earned $46 million in total compensation in fiscal 2017 and 2018, approximately 76% of it from stock grants and option awards. In January 2019, Read passed down the company to Albert Bourla after eight years at Pfizer's helm. In 2018, Read was paid 244 times the company's median pay of $80,011.Read owns 1.3 million shares if you include options, which are worth $48.5 million at current prices. In 2018 alone, Read had $10.6 million in stock vest on top of his total compensation for the year. As for share repurchases, the company repurchased $22.2 billion of its stock over the past three fiscal years, reducing its share count by 5%. Pfizer increased its earnings per share by 68% over the same period. Cisco (CSCO)Source: Sundry Photography / Shutterstock.com Cisco (NASDAQ:CSCO) CEO Charles Robbins earned $38 million in total compensation in fiscal 2017 and 2018, approximately 73% of it from stock grants and option awards. In 2018, Robbins was paid 160 times the company's median pay of $132,764, the second-highest median pay (behind Microsoft) of the 10 stocks listed in this article. Robbins owns 139,189 shares if you include options, which are worth $6.9 million at current prices. Of the CEOs on this list, Robbins has the smallest ownership position in terms of total dollars in stock held. In 2018, Robbins had $9 million in stock vest on top of his total compensation for the year. As for share repurchases, the company repurchased $41.9 billion of its stock over the past three fiscal years, reducing its share count by 13%. Cisco increased its earnings per share by 24% over the same period. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars * 5 Stocks to Buy With Great Charts * 5 Goldman Sachs Stocks to Buy with Over 20% Upside Potential The post 10 Companies Making Their CEOs Rich appeared first on InvestorPlace.
As part of its 2019 capital plan, JPMorgan (JPM) announces a 12.5% dividend hike. One should take a look at its fundamentals and prospects before taking any investment decision.
The bank geared toward small to mid-sized local businesses is eyeing a later-than-anticipated opening, but is on track with its fundraising campaign.
Average pay at the biggest firms on Wall Street has plunged from levels before the 2008 financial crisis, despite record profits being posted by U.S. banks, according to a detailed report in Bloomberg. Pay may be headed down yet more as interest rate cuts by the Federal Reserve threaten to dampen profit growth in the financial sector. Adjusted for average nominal wage growth since 2007, the biggest drops in average pay per employee among the 12 largest U.S. and European banks have been: 61% at Goldman Sachs, 46% at Credit Suisse, 36% at Deutsche Bank, 34% at Morgan Stanley, 32% at UBS, and 21% at JPMorgan.
, the US-China trade war and slowing global economic growth continued to bite, according to a survey published on Wednesday. The Business Roundtable, a group of leading US chief executives from nearly 200 companies, said its economic outlook index fell 10.3 points in the third quarter, to a reading of 79.2. While that was significantly above the 50-point benchmark that indicates growth, all three components of the index — plans for hiring, plans for capital investment and expectations for sales — fell during the quarter.
Sanjeev Gupta, the UK metals magnate, has offered to put in $150m of his own money as he attempts to sell a debut high-yield bond. for his InfraBuild business, an Australian steel and recycling company that shelved plans for a stock market flotation earlier this year. InfraBuild is now scaling back the bond deal to $325m due to lacklustre demand from bond fund managers, with Mr Gupta offering to put in the remainder himself as equity.
(Bloomberg) -- When JPMorgan Chase & Co. took over Bear Stearns more than a decade ago, it got two traders with a new trick.Their strategy: Use multiple fake orders to manipulate the prices of precious metals futures. The maneuver, adopted by the traders’ new colleagues at JPMorgan, became part of a spoofing and rigging campaign so expansive that federal authorities have now likened it to a criminal enterprise operating inside the U.S.’s biggest bank.In a criminal indictment unsealed on Monday, U.S. prosecutors accused three JPMorgan traders of rigging futures trades in precious metals for nearly a decade, making millions of dollars for the bank at the expense of counterparties that included the bank’s own clients.The charges were the latest turn in a years-long investigation that has previously yielded guilty pleas from traders at several banks, including two from JPMorgan. Prosecutors said more than a dozen JPMorgan employees ultimately helped make manipulative “spoof” trades for the bank, in part by using the strategy their new colleagues brought in May 2008.That pair, Gregg Smith and Christiaan Trunz, showed their new JPMorgan colleagues “a new style of layering multiple deceptive orders at different prices in rapid succession,” prosecutors wrote. The strategy made their market spoofing more difficult to execute and detect, prosecutors wrote in the indictment of Smith and two others. Trunz pleaded guilty last month and is cooperating with authorities.The strategy was adopted by Michael Nowak, who was JPMorgan’s global head of precious metals trading when he was put on leave last month.Federal prosecutors charged Nowak, Smith and a third man, Christopher Jordan, of “conspiracy to conduct the affairs of an enterprise involved in interstate or foreign commerce through a pattern of racketeering activity” -- counts more commonly known as RICO charges. That language, rarely used in big bank cases, suggests that JPMorgan may face deeper legal jeopardy that goes beyond the individuals who have already been prosecuted.JPMorgan declined to comment.Earlier: JPMorgan’s Metals Desk Was a Criminal Enterprise, U.S. SaysJordan and Nowak appeared in handcuffs in federal court in Newark, New Jersey, where U.S. Magistrate Judge Michael Hammer released them on $250,000 bond. They each face as long as 30 years in prison on the most serious count.Jordan was released to the custody of his parents pending his admission this week into a residential treatment program for alcohol. Hammer said Jordan must abstain from alcohol. “Chris Jordan is innocent of these heavy-handed charges, and we intend to defend him vigorously,” his attorney, Jim Benjamin, said.If directed by court officials, Nowak, 45, should undergo mental health testing or treatment, the judge said. His lawyers, David Meister and Jocelyn Strauber, said it was “truly regrettable” that prosecutors charged him because he did “nothing wrong.” They said he’d be fully exonerated.The judge ordered that they have no contact with co-defendants, witnesses, and current or former employees of JPMorgan’s precious metals desk unless their lawyers are present. Both men will be arraigned Oct. 4 in federal court in Chicago, where the case was brought.Jordan was charged with three counts of conspiracy and fraud. Smith and Nowak were indicted on six charges, including conspiracy, fraud and spoofing. According to the indictment, the JPMorgan traders defrauded bank clients who had bought or sold “barrier options” by trading futures contracts in a way that sought to push the price toward a level where JPMorgan would make money -- or at least away from a price level that would cause the bank to lose money.The Commodity Futures Trading Commission also filed a lawsuit against Nowak and Smith on Monday and settled a suit against Trunz.The JPMorgan investigation grew out of a multibank U.S. crackdown on manipulation of commodities markets using techniques including spoofing, in which traders place orders without intending to execute them to try to move prices in their favor. The Justice Department had already brought criminal charges against 16 people, including traders who worked for Deutsche Bank AG and UBS Group AG. Seven pleaded guilty, one was convicted at trial and another was acquitted.Guilt AdmissionsTrunz and the other former JPMorgan trader who admitted guilt said the manipulation was routine, sanctioned by higher-ups and went on for years.“While at JPMorgan I was instructed by supervisors and more senior traders to trade in a certain fashion, namely to place orders that I intended to cancel before execution,” former trader John Edmonds said at a October 2018 hearing, after admitting to commodities fraud and conspiracy. Edmonds entered into a cooperation agreement with the CFTC in July.Trunz told a federal judge in Manhattan last month that spoofing trades of precious metals was rampant at the bank and that he learned the technique from other traders at Bear Stearns and JPMorgan. Trunz, who entered his guilty plea on Aug. 20, said he manipulated futures markets for gold, silver, platinum and palladium from offices in New York, London and Singapore from 2007 to 2016.Read More: The indictment against Smith, Nowak and JordanJPMorgan bought Bear Stearns in a marriage arranged by the U.S. Federal Reserve during the height of the financial crisis in 2008.Already, people inside JPMorgan were using deceptive trading methods, prosecutors said. Their new colleagues brought new ones. In May, the same month the deal was completed, Smith executed the deceptive-layering technique, the indictment said.The new style involved the layering of multiple deceptive orders at nine different prices in rapid succession that together were larger than the portion visible to other traders in the marketplace, known as “iceberg orders.” Prosecutors said this trading style “took hold of the precious metals desk” at JPMorgan and was adopted by Nowak and other conspirators.The indictment lays out dozens of trades that prosecutors allege are just a tiny fraction of the the thousands of transactions the conspirators made as part of the scheme. The charges also pull from electronic chats between the traders that prosecutors allege serve as examples of the criminal purpose behind the deals.In an electronic chat on Feb. 24, 2009, less than a year after Trunz arrived from Bear Stearns, he had the following conversation with a co-conspirator identified only as “CC-7” in the filing:Trunz: so you know its gregg bidding up on the futures trying to get some offCC-7: sweet mateTrunz: In case you were watching some large bids come into marketCC-7: appreeshCC-7: that worked!(A previous version corrected details of the order for mental health evaluation for Nowak.)(Updates with charges against each defendant)\--With assistance from Neil Weinberg and Greg Farrell.To contact the reporters on this story: Tom Schoenberg in Washington at firstname.lastname@example.org;David Voreacos in Newark, New Jersey at email@example.comTo contact the editors responsible for this story: Jeffrey D Grocott at firstname.lastname@example.org, David S. 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The Federal Deposit Insurance Corp. released its annual survey of branch office deposits on Sept. 13.
A U.S. banking regulator on Tuesday proposed easing a rule requiring banks to set aside cash to safeguard derivatives trades between affiliates, marking one of the biggest wins for Wall Street lenders under the business-friendly Trump administration. The proposal, by the Federal Deposit Insurance Corporation, could potentially free $40 billion across the nation's largest banks, according to a 2018 survey by the International Swaps and Derivatives Association (ISDA), the global trade group that has been lobbying for the rule change for years. The proposal is subject to public comment and will likely face resistance from Democratic lawmakers and consumer groups, who have warned that chipping away at regulations put in place following the 2007-2009 financial crisis could sew the seeds of the next one.
The proposal by the Federal Deposit Insurance Corporation could potentially free $40 billion of cash across the nation's largest banks, according to a 2018 survey by the International Swaps and Derivatives Association which has been lobbying for the rule change for years. The regulator also proposed relief for banks transitioning from the London interbank offered rate (LIBOR) to the new Secured Overnight Financing Rate (SOFR), and also proposed delaying rules that would require smaller fund managers to begin posting margin for derivatives transactions to Sept. 2021, after the Basel Committee of global regulators had done the same.