Posts tagged 'US Banks'

A simpler JPMorgan

We have meaningfully simplified the company…

— Jamie Dimon’s 38-page letter to JPMorgan shareholders, April 8 2015

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Friday banks chart, Italian-American edition

OK, one country can print in its own currency, while the other can’t. There is also no suggestion of an intimate circle of support in the US by which banks and the government prop each other up (as that’s what the Federal Reserve is for).

But after the FT’s story that the ECB is poised to get tough on Sovereign Bond Risk, an interesting chart arrives from Huw Van Steenis and the Morgan Stanley banks team: Read more

Whose overconfident banks are these?

Here’s a list from the Federal Reserve of good and bad practices by bank holding companies tasked with planning how to stay capitalised under its stress tests and big forward-looking capital reviews. (Ergo: “…designing an internal capital planning process that simply seeks to mirror the Federal Reserve’s stress testing is a weak practice“.)

It doesn’t name names. More’s the pity. Read more

US housing’s resilience

The Q2 results from Wells Fargo and JP Morgan have again raised the issue of declining mortgage refinancings (if rates stay elevated), along with spurring more general worries about the housing market.

Here’s the Wall Street Journal on Friday: Read more

Glass-Steagall, reanimated


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The annual CCAR results clown show

To summarise:

1) Fed objected to their capital plans: Ally Financial and BB&TRead more

JPM: stress is what other banks feel

A grateful hat tip to the FT’s Shahien Nasiripour for constructing and sending us the following basic spreadsheet.

It shows the discrepancy between the Fed’s estimates of how the largest banks would perform in its latest stress test scenario, versus how the banks themselves said they would fare (click to enlarge): Read more

TAG, you’re zero

Quite the rally in T-bills… continuing apace on Friday, now that the Transaction Account Guarantee has become increasingly, quietly, talked about in the past tense ahead of a year-end renewal deadline.

(Chart of the 1-year T-bill, click to enlarge. The yield on a T-bill maturing in January was close to zero at pixel time) Read more

Give me Basel III, but not yet

Fresh from the Fed. (And FDIC, and OCC) Read more

Another day, another BofA mortgage suit

Although actually, this is being touted as “the first civil fraud suit brought by the Department of Justice concerning mortgage loans sold to Fannie Mae or Freddie Mac,” directed at Countrywide/BofA. (Touted by the DoJ, of course)

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As good as Goldman?

Goldman’s Q3 is out, and it’s raised the roof in trading / the dividend:

The Board of Directors of Group Inc. increased the firm’s quarterly dividend to $0.50 per common share from $0.46 per common share…

As the FT reports, total net revenues doubled, to $8.35bn, and it’s a marked changed from the third quarter last year.

Although, does this count for something? — 1 per cent quarterly growth in FICC: Read more

Carry on bank credit

US banks as one of the last big carry opps, really? Chart via Ralph Axel at BofA Merrill Lynch:

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VaRy unwound

JP Morgan’s second-quarter 10-Q is out – and so is its restated filing for the first quarter.

Of course, the bank has already opened the kimono (as Jamie Dimon might say) on the unwinding – and transfer to its investment bank – of the synthetic credit trades built up by its Chief Investment Office. Read more

Citi’s Q2

Net income down 12 per cent to $2.9bn, a sombre investment banking performance – equities revenue down 29 per cent on the year – while in releasing loan loss reserves…

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JPMorgan Whale loss $4.4bn, *restates* Q1



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‘I ain’t dead’ — US bank holding companies

Click for Goldman’s ‘living will ‘ for regulators, listing how it would try to resolve by selling parts of its business under bankruptcy:

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The Moody’s bank downgrades

New York, June 21, 2012 — Moody’s Investors Service today repositioned the ratings of 15 banks and securities firms with global capital markets operations. The long-term senior debt ratings of 4 of these firms were downgraded by 1 notch, the ratings of 10 firms were downgraded by 2 notches and 1 firm was downgraded by 3 notches. In addition, for four firms, the short-term ratings of their operating companies were downgraded to Prime-2. All four of those firms also now have holding company short-term ratings at Prime-2. The holding company short-term ratings of another two firms were downgraded to Prime-2 as well.

Morgan Stanley was downgraded by two notches rather than the three which were possible. Nine other banks also lost two notches. Moody’s did downgrade Credit Suisse three notches though. The full list… Read more

VaR she blew

Why is CreditSights highlighting JPMorgan’s late-2008 shift from a 99 per cent to 95 per cent confidence interval* in its Value-at-Risk measurement, here?

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Jamie Dimon’s CIO hindsight – Live!

In hindsight, CIO’s traders did not have the requisite understanding of the risks they took…

JPMorgan’s chief executive Jamie Dimon is up before the US Senate Committee on Banking, Housing and Urban Affairs on Wednesday, to discuss “A Breakdown in Risk Management: What Went Wrong at JPMorgan Chase?”. (Here’s the testimony Jamie prepared earlier.) Read more

‘Bye Bye Basel?’, seen in the RWAs

Portrait of a bank capital-counting model in trouble – charts via Barclays Capital:

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Showing Goldman how Twitter works…

Trouble getting this stuff through compliance…?

Just the one tweet so far from Goldman Sachs on its own shareholder meeting. Read more

JPMorgan: the management change

NEW YORK–(BUSINESS WIRE)–JPMorgan Chase (NYSE: JPM) announced today that Ina Drew, Chief Investment Officer, has made the decision to retire from the firm. Ina has served the firm for more than 30 years, most recently as head of our Chief Investment Office.

Matt Zames, currently co-head of Global Fixed Income in the Investment Bank and head of Capital Markets within the Mortgage Bank, will succeed Ina as the firm’s Chief Investment Officer and continue in his mortgage-related responsibilities. Matt will also join the firm-wide Operating Committee. Daniel Pinto, currently co-head of Global Fixed Income with Matt, will become sole head of the group. Daniel will also remain CEO of our Europe, Middle East and Africa region, based in London. Read more

JPMorgan, a Fitch ratings harpooning [update: now S&P]

Fitch Ratings-New York-11 May 2012: Fitch Ratings has downgraded JPMorgan Chase & Co.’s (JPM) Long-term Issuer Default Rating (IDR) to ‘A+’ from ‘AA-‘ and its Short-term IDR to ‘F1’ from ‘F1+’. Fitch has placed all parent and subsidiary long-term ratings on Rating Watch Negative.

Fitch has also downgraded JPM’s viability rating (VR) to ‘a+’ from ‘aa-‘ and placed it on Rating Watch Negative. In addition, Fitch affirmed JPM’s ‘1’ support rating and ‘A’ support rating floor. A full list of rating actions follows at the end of this release. Read more

Goldman loses to Bank of America in the least Q1 negative-revenue trading days contest

They had one, BofA had none — sorry, we couldn’t resist the tease. From Goldman’s first-quarter 10-q:

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As good as… Moynihan

Spotted by the FT’s Shahien Nasripour in Bank of America’s latest 10-Q filing — a perfect positive trading record in the first quarter:

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Fed seeks to break up long-standing US bank lovefest

Earlier this year the Fed proposed new rules that would limit banks’ exposure to each other even more than the Dodd-Frank reforms, coming into force next year, already demand. The banks went away to think about it, and it’s safe to say they have some concerns. Goldman Sachs, in fact, has sent the Fed 20 pages-worth of its concerns just ahead of a meeting in New York today with Daniel Tarullo, the Federal Reserve governor, and assorted big bank executives.

In short, Goldman summarises, “parts of the Proposed Rules appear likely to damage, rather than strengthen, the systemic safety of the US financial sector and ultimately the US economy.” Oh, and it’s going to cost the US up to 300,000 jobs according to their calculations and cut economic growth by up to 0.4 per cent. Read more

May Day bank margins

Charts via Nomura’s European bank analyst, Jon Peace:

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Citi and second liens

Three’s a trend — Citi’s joined JP Morgan and Wells Fargo in reclassifying home equity (junior lien mortgage) loans as bad assets this quarter.

From a footnote in its Q1 resultsRead more

Aladdin’s bond cave

Bit of a Volcker Rule/whither market-making talker from the WSJ… BlackRock is back touting post-bank ‘internal’ trading for its clients.

Feels like it’s been building a trading platform since forever actually… Read more

Carry unwinds and bond fakeouts

Something on the Treasury sell-off last week from RBC’s Michael Cloherty, which we found interesting… it’s another theory about what caused the selling, and whether it’s ‘the big one’ for risk.

We noted earlier that during the sell-off, the yield curve flattened, i.e. the rise in yields on longer-dated bonds was more or less matched at the short end. Whereas you might expect (say) 30-year Treasuries to be particularly sold off, if a fundamental paradigm shift in real rates is suddenly here. So – Cloherty says the selling of short-dated bonds reeks of a carry trade being closed out. Read more