A new study by the Government Accountability Office said that large banks were able to borrow money for less during the financial crisis because investors thought the government would support them, but that the funding advantage “may have declined or reversed.”
Greenberg was named CEO of Bear Stearns in 1978 and took the company public. He was the chairman of its executive committee when the bank, on the brink of collapse, was bought out by JPMorgan Chase in 2008.
But the bank’s core trading and sales business still shrank in revenue, fulfilling a warning made by the firm in May.
Despite declines in revenues from mortgages and trading, the largest bank in the country beat out analysts’ expectations with $6 billion in profits. In his first public comments since being diagnosed with throat cancer, CEO Jamie Dimon said he was “feeling great.”
Citi barely ekes out a second-quarter profit of $181 million, after a $3.8 billion charge to help pay its settlement over mortgage-backed securities sold before the financial crisis.
Dimon says his prognosis is “excellent, the cancer was caught quickly, and my condition is curable.”
Attorney General Eric Holder said BNP Paribas was “conspiring with other entities to deliberately and repeatedly violate longstanding U.S. sanctions against Sudan, Cuba, and Iran.”
Overdraft fees, which amount to around $32 billion a year, generate massive revenue for banks but confuse and anger many consumers. New rules mandate that consumers opt-in to overdraft programs.
The bank’s chief financial officer said that stock and bond trading revenues are expected to drop by up to a quarter. “We kind of have the market that we’ve got. I wish I had a better answer.”
And almost three quarters of young people would bank with a non-bank company if they could.
The former Treasury Secretary doesn’t expect his book, Stress Test, to change the minds, but he hopes it can serve as a warning for the next financial crisis.
Despite the best investment banking quarter since 2007, Goldman’s revenue and profits for the first quarter of this year fell 8% from a year ago.
JPMorgan Chase reported a $5.3 billion profit and $23.9 billion in revenue, both missing analysts’ expectatations.
Banks get $32 billion a year in overdraft fees from a product used by 9 out of 10 Americans.
“This final rule may be the most significant step we have taken to reduce the systemic risk posed by these large, complex banking organizations,” said FDIC chair Martin Gruenberg. The eight largest U.S. banks will have to find $68 billion in new capital to meet new rules on how much banks can borrow.
Yet another senior JPMorgan executive — and a once-potential successor to Jamie Dimon — departs.
Twenty-one percent last went into a bank branch to do something besides use an ATM over a year ago, according to a new study.
The Fed’s stress test says 29 of the 30 largest banks are well capitalized enough to survive a large shock, but the biggest banks would take the largest hits. Update: The Federal Reserve made errors in calculating some minimum capital ratios and has released new figures which are included.
“If you don’t hold them accountable, it’s Groundhog Day, you’re going to get a big settlement and they’re going to do it again in a couple years,” Ben Lawsky told BuzzFeed.
Seamless is your only true friend.
“If regulators are even slightly willing to take a large financial institution to trial, that will have an impact on future behavior,” Warren said.
Echoing the divide among sources, one says it is “hard to justify,” while another says it is “not surprising.”
An $8.5 million raise from the year before, despite over $22 billion in fines, penalties, and compensation from the bank in 2013.
JPMorgan earns $5.3 billion on $24.1 billion in revenue, still hitting analysts’ expectations for the fourth quarter.
The settlement total includes a $2 billion fine and $4 billion in aid. It is the largest settlement by a single company. But up to $2.66 billion of it could be deducted from the bank’s taxes.
But they have to be a bit less open.
#AskJPM indeed. Update - 7:05 PM ET: JPMorgan cancelled.
$4 billion of it goes to end the Federal Housing Finance Agency’s 2011 suit against the bank. And another $9 billion is expected.
“Should a wrongdoer whose conduct caused harm to the taxpayer ask the taxpayer to help pay the fine for the wrong done?” Welch wrote to JPMorgan CEO Jamie Dimon. “We think not.”