In January 2015, the stock traded as high as $94. Two years later and the stock price cannot sniff $80, much less its former highs.True, it is well off its lows from last year, but it might be quite a while before it regains its former heights.
Category: Financial Services
BlackRock’s $1 Trillion Move to JPMorgan Shows Cost-Cut Strategy
State Street Corp. on more than $1 trillion in client assets as the asset manager seeks to cut costs by putting pressure on vendors. The move of assets to JPMorgan Chase & Co.
Goldman’s Cohn Unlocks More Than $284 Million by Joining Trump
Gary Cohn’s jump from Goldman Sachs Group Inc. to Donald Trump’s administration is helping him unlock more than $284 million in pent up bonuses, stock holdings and other investments through the Wall Street bank. To help Cohn avoid conflicts of interest as Trump’s top economic adviser, the bank is letting its former president immediately collect about $65 million in cash and stock tied to its future performance.
Aleynikov’s Conviction Is Reinstated by State Appeals Court
Former Goldman Sachs Group Inc. programmer Sergey Aleynikov is once again guilty of stealing the firm’s high-frequency trading code after a state appeals court reinstated his conviction. “Whether the legislature envisioned the specific type of technology that exists today is not dispositive of this appeal,” the appeals court said.
Travelers Profit Climbs 8.9% as Private Equity Bets Thrive
Travelers Cos., the only property-casualty insurer in the Dow Jones Industrial Average, said fourth-quarter profit jumped 8.9 percent as investment income improved and the company recorded a gain tied to the settlement of a risk-sharing dispute. Net income rose to $943 million, or $3.28 a share, from $866 million, or $2.83, a year earlier, the New York-based company said Tuesday in a statement.
Billionaire Seeks Solace in Bonds After Share Sale Stumbles
Yes Bank Ltd.’s billionaire chief Rana Kapoor says he will consider bond sales every year to bolster capital, signaling a new-found appreciation of the debt market after a $1 billion share sale faltered in September. Strong investor interest in a 30-billion rupee perpetual bond sale last month has now given Kapoor confidence in similar transactions to raise his Mumbai-based bank’s buffers against potential losses, he told reporters last week.
Revenue and Earnings Fall at American Express
Shares of the credit card giant are down since the news, dropping by 2% over the intervening days. American Express earned $825 million in the three months ended December 31, down 8% from the year-ago period.
Fed’s Lacker favors faster rate hike path to curb inflation
Jeffrey Lacker, the hawkish president of the Federal Reserve Bank of Richmond, said on Monday he is worried inflation could surge unless the U.S. central bank raises interest rates faster than his fellow policymakers anticipate. “Right now I think we are at risk of getting behind the curve, so lately I’ve been an advocate of pushing rates up a little more aggressively than my colleagues,” Lacker said in an interview on WCVE, a Richmond public radio station.
Ford Takes Step Toward Online Car Shopping With Fintech Investment
The lending arm of Ford Motor Co. has tapped a San Francisco startup to make it easier for its customers to buy and finance a car without going into a showroom.
OptionsHouse vs. TradeStation: Comparing Online Discount Brokers
For the most part, brokerages offer access to the same stock markets and the same investments as any other brokerage. The differences largely come down to how much it costs to get there, how much you need to get started, and what other features are tacked on as part of the service.
Foxconn Considering $7 Billion U.S. Investment For Flat Panel Display Production
Apple supplier Foxconn is considering a $7 billion investment that would establish a U.S.-based LCD display manufacturing hub that could create as many as 50,000 new jobs. Apple supplier Foxconn said Sunday it is considering a $7 billion investment that would establish a U.S.-based LCD display manufacturing hub that could create as many as 50,000 new jobs.
GE Misses Sales Estimates as Oil Weighs on Immelt’s Overhaul
General Electric Co.’ s woes in the oil patch persisted in the fourth quarter, denting sales and dragging down shares to their biggest decline in four months.
Friday’s ETF with Unusual Volume: KBWR
The PowerShares KBW Regional Banking Portfolio ETF is seeing unusually high volume in afternoon trading Friday, with over 296,000 shares traded versus three month average volume of about 77,000. Shares of KBWR were up about 0.5% on the day.
HSBC Said to Begin Cutting About 100 Investment Banking Jobs
HSBC Holdings Plc, Europe’s largest bank, has begun cutting about 100 senior investment-banking jobs, according to a person with knowledge of the matter. The cuts are at the managing-director and director level, the person said, asking not to be identified because the matter is private.
Draghi’s Role in Elite Finance Group Comes Under EU Scrutiny
The European Union ombudsman has opened an inquiry into European Central Bank President Mario Draghi’s involvement with an elite group of economic leaders. The investigation will consider Draghi’s membership of the Group of 30, a forum of finance executives, academics and policy makers including Bank of England Governor Mark Carney, Warburg Pincus LLC President Tim Geithner, Credit Suisse Group AG Chief Executive Officer Tidjane Thiam, and former ECB chief Jean-Claude Trichet.
U.S. bankers tell Europeans to think positively on Trump
U.S. bankers, buoyed by a resurgence in profits, are advising their counterparts in Europe to think positively about the new administration of U.S. President-elect Donald Trump. At the annual gathering of the world’s political and business elites in the Swiss resort of Davos, U.S. financiers told investors and overseas’ rivals to focus less on Trump’s anti-globalization rhetoric and more on his cabinet picks, comprising of Wall Street veterans and corporate bosses.
Deutsche Bank Burden in Mortgage Settlement Eased by Fine Print
Deutsche Bank AG sought an unusual provision in its $7.2 billion mortgage-bond settlement with the U.S. government, and seems to have ended up winning it: the bank can pay down part of its penalty by lending money to fund managers. As part of the agreement, Germany’s largest bank has to provide $4.1 billion of relief for mortgage borrowers.
Deutsche Bank Burden in Mortgage Settlement Eased by Fine Print
Deutsche Bank AG sought an unusual provision in its $7.2 billion mortgage-bond settlement with the U.S. government, and seems to have ended up winning it: the bank can pay down part of its penalty by lending money to fund managers. As part of the agreement, Germany’s largest bank has to provide $4.1 billion of relief for mortgage borrowers.
American Express Shares Up Slightly After Company’s Quarterly Sales Beat Expectations
Shares of American Express Co. rose slightly late Thursday after the credit card company reported fourth-quarter earnings below expectations but quarterly sales slightly above forecasts.
Why GNC Holdings, Aaron’s, and Dean Foods Slumped Today
The stock market lost ground on Thursday, as investors sent the Dow Jones Industrials below the level at which the average began the year. Losses for the S&P 500 and Nasdaq Composite were modest at around a third of a percent, but they reflected a downbeat attitude among investors, who are struggling to predict what’s likely to happen on the political and macroeconomic fronts for the remainder of the year and beyond.
American Express Profit Falls 8.2% as Expenses Top Estimates
American Express Co., the largest U.S. credit-card issuer by purchases, said fourth-quarter profit fell 8.2 percent as expenses exceeded analysts’ estimates and the firm set aside more money to cover bad loans. Net income dropped to $825 million, or 88 cents a share, from $899 million, or 89 cents, a year earlier, the New York-based company said Thursday in a statement.
AmEx Profit Lags Estimates as Chenault Invests 35% More in Marketing
American Express posted lower profit in the last three months of 2016 than analysts expected as CEO Kenneth Chenault boosted spending on marketing and promotion by 35% to replace some of the revenue lost with the Costco portfolio. net income dropped 8% from a year earlier to $825 million, the New York-based company said in a statement .
Buy Panera Bread Stock Over Bloomin’ Brands, Goldman Says
Goldman Sachs has swapped its rating on Panera Bread and Bloomin’ Brands , sending shares of the restaurants in opposite directions Thursday afternoon. “Estimate uncertainty remains an ongoing concern; however, we view valuation as increasingly compelling,” analysts Karen Holthouse and Gregory Lum said.
Sell Target Stock on Weak Holiday Sales, Amazon Competition: Goldman
Target’s stock rating was cut to “sell” from “neutral” at Goldman Sachs on Thursday following the retailer’s disappointing holiday sales report and competition concerns. The stock dropped 1.45% to $65.88 in mid-afternoon trading.
What Happens When GE Earnings Meet Donald Trump’s Corporate Tax Plan
A wild card that may drive higher growth at GE and reposition manufacturers as drivers of the U.S. economy is President-elect Donald Trump’s plan to cut corporate taxes. For now, investors gauging General Electric CEO Jeffrey Immelt’s progress toward delivering $2 of profit per share in 2018 can monitor benchmarks such as fourth-quarter shipments of a But there’s a wild card that may deliver much more spectacular growth, though on a longer and fuzzier timeline: President-elect Donald Trump’s plan to cut corporate tax rates to 15% from as much as 35%.
BofA Management Admits It Can’t Turn a Profit on Invested Capital
Chief Executive Brian Moynihan has only produced a 6.7% return on shareholder’s equity since taking over in 2010 and thus is returning capital through stock buybacks Brian Moynihan has been chief executive of Bank of America for seven years, and when he took the helm in 2019, return on shareholder equity wasn’t positive. Last year, stock buybacks amounted to $5.1 billion.
U.S. Stock-market Futures Hold Lower After ECB Keeps Rates Unchanged
U.S. stock futures on Thursday traded slightly lower after the European Central Bank kept its interest rates unchanged as expected. Dow futures were off 0.1% at 19,712, the S&P 500 index futures slipped 0.1% at 2,264, while those for the Nasdaq-100 were near break-even levels at 5,051.
European And U.S. Bond Yields Remain Higher After ECB Rate Decision
Yields on U.S. Treasury bonds and European sovereign bonds remained higher on Thursday after the European Central Bank left its benchmark interest rate and bond-buying program unchanged. The yield on the 10-year Treasury rose 1.5 basis point to 2.444%, while the yield on the 10-year German bund, considered the European benchmark, rose 3.3 basis points to 0.389%.
European Central Bank keeps key interest rate on hold
The decision by the eurozone central bank’s 25-member governing council to leave its benchmark borrowing rate on hold had been expected. It was also decided not to change the ECB’s bond-buying stimulus scheme, which was extended last month amid worries about economic growth.
Credit Suisse Tops Market in Zurich After Final $5.3 Billion Mortgage Settlement with DoJ
Credit Suisse Group shares gained Thursday after the investment bank followed rival Deutsche Bank in finalizing a multi-billion dollar mortgage bond settlement with the U.S. Department of Justice. Credit Suisse Group shares rose to the top of the leaderboard in Zurich Thursday after the investment bank followed its German rival, Deutsche Bank AG , in finalizing its multi-billion dollar mortgage bond settlement with the U.S. Department of Justice.
Lloyds Said to Pick Frankfurt for EU Subsidiary Following Brexit
Lloyds Banking Group Plc, Britain’s largest mortgage lender, is set to pick Frankfurt as its base to maintain access to the European Union’s single market following Brexit, according to a person with knowledge of the matter. The U.K. bank will choose to convert its German branch into a subsidiary and plans to apply for an extension to its banking license, said the person, who asked not to be identified because the details aren’t public.
SBI Head Lays Out Deposit Puzzle Faced by India’s Biggest Lender
Analysts scratching their heads over the impact on India’s banks of the country’s move to ban high-value notes have every right to be puzzled, as estimates offered by the chairman of State Bank of India indicate. The bank could retain anything from 15 percent to 40 percent of the deposit boost it received after the government withdrew about four-fifths of the banknotes in circulation in November, Arundhati Bhattacharya said in an interview Wednesday with Bloomberg Television’s Erik Schatzker.
European Stocks Called Higher; ECB Rate Meeting in Focus
European stocks are set for modest gains at the open of trading Thursday amid a rebound overnight for the dollar and ahead of a European Central Bank rate decision. European stocks are set for modest gains at the open of trading Thursday amid a rebound overnight for the U.S. dollar and ahead of the first rate-setting meeting of the year for the European Central Bank.
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A street sign is seen in front of the New York Stock Exchange October 16, 2007. U.S. stocks fell on Tuesday after disappointing earnings and outlooks from financial services companies suggested problems from the credit squeeze will be prolonged.
Citadel Trader Who Built CDS Business Exiting After a Year
Tian Zeng is leaving Citadel Securities LLC a year after leading the company’s foray into the credit-default swaps trading business, people familiar with the matter said. The hiring of Zeng from Citigroup Inc. in December 2015 was a key step in Citadel Securities’ push to make markets in credit derivatives after an eight-year campaign to loosen Wall Street dealers’ stranglehold.
Citadel Trader Who Built CDS Business Exiting After a Year
Tian Zeng is leaving Citadel Securities LLC a year after leading the company’s foray into the credit-default swaps trading business, people familiar with the matter said. The hiring of Zeng from Citigroup Inc. in December 2015 was a key step in Citadel Securities’ push to make markets in credit derivatives after an eight-year campaign to loosen Wall Street dealers’ stranglehold.
Deutsche Bank Is Said to Scrap Senior Bankers’ Bonuses for 2016
Deutsche Bank AG will tell senior employees as soon as this week that they probably won’t get a bonus for 2016 because of the lender’s performance last year, according to a person familiar with the decision. The decision to withhold bonuses for management board members and most top bankers across the firm was taken at the end of last year and isn’t directly related to the cost of settling legal disputes, said the person, who asked not to be identified discussing internal matters.
American Express Is Golden but Is It Worth Holding?
American Express is on a roller coaster. The company’s stock set its all-time intraday day high in July 2014 and declined by 47.8% when the stock traded to its multiyear intraday low in February 2016.
Ex-Deutsche Bank Forex Trader Faces Jail for Defrauding Firm
A former Deutsche Bank AG foreign-exchange trader faces a possible prison sentence after a Singapore court convicted him of defrauding the company by making false trades. Toh Hway Khuan, 51, pleaded guilty on Wednesday to 13 charges relating to using the bank’s account to get preferential rates on the dollar in November 2009.
Ex-Goldman Trader’s Macro Hedge Fund Said to Lose 5.1% in 2016
Former Goldman Sachs Group Inc. trader Leland Lim’s macro hedge fund lost 5.1 percent in 2016, even after recovering from steep declines early in the year, according to people with knowledge of the matter. Assets overseen by Lim’s Hong Kong-based Guard Capital Management declined to $963 million from about $1.1 billion at the beginning of the year, said the people, who asked not to be identified because the information hasn’t been publicly disclosed.