Archive for JP Morgan Chase
Several big name financial institutions, such as Bank of America (NYSE: BAC) and JP Morgan (NYSE: JPM) are looking for ways to increase fee income in order to offset expected revenue declines from the financial reform bill.
The latest version of the financial reform bill passed on Thursday is expected to pressure revenue in several areas ranging from items like transaction fees on debit card transactions to proprietary trading at banks.
The rule changes may lead banks to start implementing fees that had essentially disappeared from the industry early in the new millennium, such a fees for not meeting mininumu balance requirements on a checking account, or reinstituting fees for certain online banking transactions that are currently free.
Banks are legitimately concerned with revenue declines due to the new rules as Bank of America said on Friday that it could stand to lose more than $2 billion in yearly revenue just from the changes in what fees can be charged on debit card transactions.
The financial reform bill, which is expected to be signed by President Obama soon, represents the largest sweeping change in the banking industry since the Great Depression era.
This article (Bank Of America (NYSE: BAC), JP Morgan (NYSE: JPM) Target Fees To Offset Revenue Drags From Financial Reform) was originally developed by and is property of American Banking News. Checkout American Banking News for up-to-date banking news and peer to peer lending news.
The Day Ahead: Earnings, Inflation, Manufacturing, Jobless Claims
Posted by: | CommentsPosted To: MBS Commentary
Stocks have gained more than 7% over the past five trading days, but yesterday the Dow inched up just 0.04% while the S&P 500 fell 0.02%. After a mixed session on Wednesday, equity futures have responded positively to JP Morgan earnings that beat analyst expectations. JPMorgan Chase & Co. reported second-quarter 2010 earnings of $4.8 billion, compared with $2.7 billion in the second quarter of 2009. Earnings per share were $1.09, compared with $0.28 in the second quarter of 2009. Consensus estimates called for $0.67 earnings per share. Nonperforming loans were $2.3 billion, down by $1.3 billion from the prior year and $481 million from the prior quarter. Jamie Dimon, Chairman and Chief Executive Officer, commented on the quarter: "Our net income increased to $4.8 billion, including...(read more)JP Morgan Chase (NYSE: JPM) London Unit Hit With Record Fine
Posted by: | CommentsBritish financial regulators hit the London unit of JP Morgan Chase (NYSE: JPM) with a record 33.3 million pound ($48.8 million) fine for comingling a portion of client money with firm capital. According to the Financial Services Authority (FSA), JP Morgan Securities Ltd (JPMSL) failed to separate all funds between November 2002 and July 2009.
During that time frame JPMSL held funds ranging from $1.9 billion to $23 billion. If the firm had run into financial trouble at any point in that period, client money would have been at risk of loss, according to the FSA.
“JPMSL committed a serious breach of our client money rules by failing to segregate billions of dollars of its clients’ money for nearly seven years. The penalty reflects the amount of client money involved in this breach,” said FSA Director Margaret Cole.
“The FSA has repeatedly emphasised the importance of ensuring that client money is adequately protected. Despite being one of the largest holders of client money in the UK, JPMSL failed to do so,” added Cole.
JP Morgan avoided a larger fine from the FSA by being proactive about the issue, first stating last August that 8.5 billion pounds of client money may had been mixed with its own funds. An auditor was hired at the time to review accounts of JPMSL.
The issue of keeping client funds and company funds separate flared up after the collapse of Lehman Brothers in 2008.
This article (JP Morgan Chase (NYSE: JPM) London Unit Hit With Record Fine) was originally developed by and is property of American Banking News. Checkout American Banking News for up-to-date banking news and peer to peer lending news.