Posts belonging to Category J. P. Morgan Chase

J.P. Morgan to Cut Thousands of Jobs


J. P. Morgan Chase has announced plans to cut 17,000 jobs over a two-year period and cut $1 billion of expenses this year.  The announcement was made at an Investor Day presentation in New York.  The bank employs nearly 260,000 people worldwide.  Over the past several years, CEO Jamie Dimon reportedly had been adamant that [...]

JP Morgan and Credit Suisse Pay Over $400 Million to Settle Mortgage-Backed Securities Actions


The SEC has settled two mortgage-backed securities actions against J. P. Morgan Chase and Credit Suisse for over $400 million. The enforcement actions arose out more than $1 billion in losses by investors during the financial crisis. Critics say that the settlements are just a cost of doing business and will not deter similar Wall [...]

Investors Should Be Wary of Variable Prepaid Forward Transactions


Variable prepaid forward transactions result in a huge judgment against JPMorgan. An Oklahoma state court judge recently found that JPMorgan Chase breached its fiduciary duty as a co-trustee of a trust and ordered it to pay more than $18 million, including punitive damages for “reckless disregard for the rights of others.” In a 32-page opinion, [...]

Underwriter Abuses are Plentiful in the Municipal Bond Markets


Firms that underwrite municipal bonds often gain advantage over municipalities by engaging in unlawful acts that sometimes may rise to the level of criminal activity. Public officials are, by and large, not savvy municipal bond financiers. They usually rely on the expertise of underwriters, who often take unfair advantage of municipalities, public officials and taxpayers [...]

Case Reveals How Wall Street Banks Cheated Municipalities out of Billions of Dollars


The former co-head of UBS AG’s municipal-derivatives group, and two ex-colleagues are defendants in a municipal bond bid-rigging case being tried before U.S. District Judge Kimba Wood in Manhattan (“Ex-UBS execs on trial in muni bid-rigging case,” InvestmentNews).

JPMorgan Proprietary Funds Torch Investors


JPMorgan financial advisers say that they were encouraged to push the firm’s proprietary products despite the availability of less expensive, better performing alternatives, and that the firm exaggerated the returns of at least one crucial offering (See “Former Brokers Say JPMorgan Favored Selling Banks’ Own Funds Over Others,” by Susanne Craig and Jessica Silver-Greenberg).

JPMorgan’s Derivatives Losses Reach $9 Billion and Counting


The New York Times reported that JPMorgan’s trading losses from credit derivatives may total as much as $9 billion, far exceeding the firm’s initial estimate. Initially, CEO Jamie Dimon disclosed that the bank lost more than $2 billion. The losses have increased as the bank has unwound the trades. (“Would you believe $9B? JPMorgan trading [...]

Investor Alert – JPMorgan Alerian MLP Index ETN


Heads up to Investors in the JPMorgan Alerian MLP Index ETN (Symbol: AMJ). JPMorgan has ceased issuing new shares of the master limited partnership exchange-traded note. The ETN posted a note on its web page explaining that it stopped issuing new share because the maximum number of shares allowed had been reached (“Red flag at [...]

Regulators Expand Investigations into JP Morgan’s Derivatives Trading


The Commodities Futures Trading Commission (CFTC) is expanding its investigation into whether J.P. Morgan traders, who made the derivatives trades that resulted in losses of $3 billion and counting, engaged in fraud, among other things. The investigation is proceeding under new authority gained in the Dodd-Frank financial reform act. “U.S. Probe of J.P. Morgan Widens,” [...]

Insider Trading Problems at JP Morgan


More bad news for J.P. Morgan Chase ? regulators in Japan have found that a Japanese employee of JP Morgan was involved in insider trading in connection with a share offering by Nippon Sheet Glass Co. The employee, who was not identified, reportedly leaked inside information to people at Asuka Asset Management. This latest revelation [...]

Was Facebook’s Disastrous IPO Rigged by Wall Street?


The house always wins. That saying was originally meant to warn people away from the Vegas Strip on Las Vegas Boulevard. But sometimes it applies even more strongly to Wall Street. Recently, investors who wanted to get in on the next Google lost a ton of money on the Facebook IPO, while Wall Street did [...]

Wall Street’s ‘Gunslinger’ Mentality Must Be Regulated


By now many of us have learned of JPMorgan Chase’s $100 billion derivatives bet that has turned into a $3 billion and counting loss. Proving that Wall Street banks are still acting like gambling casinos, JPMorgan bet 15 percent of its balance sheet on risky credit default swap contracts tied to corporate bonds (“What JP [...]

Were JP Morgan Chase Credit Card Holders Victimized By Chase?


According to a whistleblower lawsuit filed recently, J.P. Morgan Chase’s credit card services division sold nearly $200 million worth of supposed credit card judgments to collection agents. Each judgment was represented by Chase to be an enforceable court order against a Chase credit card holder to pay a certain amount of debt owed. But many [...]

Now Even Wall Street Firms Are Becoming Whistleblowers


What’s the difference between a Wall Street bank and a whistleblower? Nothing! While Wall Street railed against whistleblower protections for employees in Dodd-Frank, turns out they are falling all over themselves to blow the whistle on each other. Why? Because the first to tattle gets protections that are not offered to the second to tattle. [...]

Is the SEC Too Soft on Major Wall Street Firms?


Questions continue to arise regarding the too-cozy relationship between the SEC and Wall Street. Recent reports claim that the SEC, when settling with big Wall Street firms, has a practice of granting waivers that preserve special privileges enjoyed by those firms, and protect them from serious consequences that would otherwise result from their wrongdoing. For [...]