TheStreet Search RSS Feed: Philip van Doorn

Morgan Stanley: Tragic Greek Loser

Wed, 16 May 2012 16:33:42 EDT

NEW YORK (TheStreet) -- Morgan Stanley was the loser among the largest U.S. financial names on Wednesday, with shares sliding over 4% to close at $13.54.

Investors continued to worry about a possible Greek exit from the euro, as the country was still unable to form a new government after elections on May 5, setting up another probable round of elections for June, along with a possible sovereign default. The Financial Times reported that over 1.2 billion euro in deposits were withdrawn from Greek banks on Monday and Tuesday.

Back home, according to the minutes of the Federal Reserve Open Market Committee's meetings in late April several committee members indicated "that additional monetary policy accommodation could be necessary if the economic recovery lost momentum or the downside risks to the forecast became great enough," in the face of a "sharp fiscal tightening" in 2013." ...

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JPMorgan's Shareholder Savior Could Be a Buyback

Wed, 16 May 2012 09:46:50 EDT

NEW YORK (TheStreet) -- The market's harsh reaction to JPMorgan Chase's second-quarter hedging loss could be a golden opportunity for the company to benefit from lower buyback prices.

JPMorgan's shares declined 11% following CEO James Dimon's announcement after the market close last Thursday of the $2 billion trading loss -- partially offset by $1 billion in gains on available-for-sale securities -- through Tuesday's close at $36.24.

Guggenheim Securities analyst Marty Mosby said late on Tuesday that the market's reaction sets up major capital savings on share buybacks, "helping to offset the future impact of losses tied to this event." ...

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Volcker Rule: Now or Never

Wed, 16 May 2012 06:00:00 EDT

NEW YORK (TheStreet) -- It's time for Congress to provide more guidance to bank regulators on exactly what kind of hedging activity will be permitted by banks, in the wake of JPMorgan Chase's $2 billion trading loss announced last week.

JPMorgan's $2 billion loss on hedging trades -- announced by CEO James Dimon last Thursday -- is "a potential opportunity for the policy makers to conduct a public hearing to really understand exactly what went wrong here," according to Frank A. Mayer, -- a partner in the Financial Services Practice Group of Pepper Hamilton LLP -- who adds that "you don't want to make policy based on myth." Paul Volcker

At issue is the Volcker Rule, which the Federal Reserve is still struggling to implement, nearly two years after the Dodd-Frank Wall Street Reform and Consumer Protection Act was passed. The Volcker Rule prohibits bank holding companies from engaging in most forms of proprietary trading while severely limiting banks' investments in private equity funds and hedge funds. The Federal Reserve has had difficulty in defining which hedging activities banks will be allowed to continue engaging in. ...

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JPMorgan: Shareholder Silence Winner

Tue, 15 May 2012 16:26:39 EDT

NEW YORK (TheStreet) -- JPMorgan Chase was the winner among the largest U.S. financial names on Tuesday, with shares rising over 1% to close at $36.25.

JPMorgan's shares had fallen over the previous two sessions, following CEO James Dimon's late on Thursday of a $2 billion second-quarter trading loss. The Associated Press reported that at the company's annual meeting in Tampa, Fla., on Tuesday, a shareholder proposal to strip Dimon of JPMorgan's chairmanship garnered only 40% of the vote, while shareholders also approved the CEO's $23 million pay package for 2011.

The broad indexes were week as investors continued to worry over the decaying situation in Europe, as Greece has been unable to form a new government, nine days after its most recent elections, making another round of elections likely in June, as well as a possible sovereign default and exit from the euro. ...

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JPMorgan Shareholders Bear Entire Debacle Burden

Tue, 15 May 2012 07:32:05 EDT

NEW YORK (TheStreet) -- No borrowers, bondholders, regulators or taxpayers were hurt from the JPMorgan Chase trading debacle; only shareholders and bank employees got hurt, which is how it should be.

During the two trading sessions following JPMorgan CEO James Dimon's announcement late Thursday of a $2 billion second-quarter trading loss, the market lopped off 12% of the company's share price, and JPMorgan announced on Monday that Chief Investment Officer Ina Drew had resigned.

When acting Federal Deposit Insurance Corp. Chairman Martin Gruenberg last week discussed his agency's expanded powers to resolve large, failing financial holding companies -- under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 -- he said that one of the stated goals of the resolution authority was "accountability, ensuring that the investors in the failed firm bear the firm's losses." ...

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Wells Fargo's Stability vs. JPMorgan Chase's Upside

Tue, 15 May 2012 06:00:00 EDT

NEW YORK (TheStreet) -- Wells Fargo continually posts stronger earnings, but JPMorgan Chase trades at much lower multiples, so what are investors to think following last week's trading debacle?

More than one analyst has named Wells Fargo as a safe haven amid the fallout from JPMorgan Chase CEO James Dimon's announcement late Thursday of a $2 billion second-quarter trading loss tied the company's hedging activities, and with JPMorgan's shares falling 12% over the past two sessions since the announcement, Wells Fargo has certainly been the safe holding over the short haul, with shares declining only 2% over the same period.

But for long-term investors, both names have plenty of appeal. JPMorgan Chase CEO James Dimon ...

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Morgan Stanley: Financial Loser

Mon, 14 May 2012 16:22:32 EDT

NEW YORK (TheStreet) -- Morgan Stanley was the loser among the largest U.S. financial names on Monday, with shares sliding over 4% to close at $14.30.

While the aftermath of JPMorgan Chase's disclosure late on Thursday of a $2 billion second-quarter trading loss continued, with executive changes at the company and additional reaction from analysts, concerns over Europe predominated.

Greek politicians continued to struggle to form a new government following elections over a week ago, putting years of European bailout efforts at risk and leading to increased fears of a massive sovereign default and a possible exit from the euro. ...

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JPMorgan Has Double Digit Downside: Analyst

Mon, 14 May 2012 10:55:51 EDT

NEW YORK (TheStreet) -- Sterne Agee analyst Todd Hagerman on Monday said that he saw "10-15% further downside risk" to broker/dealer stocks, with "perhaps more for JPM as the review of the company's trading losses unfolds."

As the intense reaction continued, following JPMorgan Chase CEO James Dimon's announcement late Thursday of a $2 billion second-quarter trading loss, the company announced on Monday that Chief Investment Officer Ina Drew had resigned.

Following a 9% decline on Friday, to $36.96, JPMorgan Chase's shares down another 3% in early trading Monday, to $35.98. ...

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JPMorgan Chase: Don't Hit the Panic Button (Update 3)

Fri, 11 May 2012 16:19:46 EDT

Updated with market close information, comments from Guggenheim Securities analyst Marty Mosby, Comments from Sterne Agee analyst Todd Hagerman, and further details about the Levin-Merkley Amendment and the Volcker Rule.

NEW YORK (TheStreet) -- A $2 billion trading loss is a drop in the bucket for strongly capitalized, profitable banking giant with a $15 billion share buyback program in place.

JPMorgan Chase CEO James Dimon's announcement late Thursday of a $2 billion second-quarter trading loss pushed the company's shares down over 9% on Friday, to a closing price of $36.96. JPMorgan Chase CEO Jamie Dimon ...

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Jamie Dimon's $2 Billion Hangover (Update 3)

Fri, 11 May 2012 16:10:56 EDT

Updated market close informtion, comments from Sterne Agee analyst Todd Hagerman, and word of an SEC investigation into JPMorgan's trading losses.

NEW YORK (TheStreet) -- JPMorgan Chase's stock dropped over 9% to close at $36.96 on Friday, after Chief Executive Officer Jamie Dimon startled the world by announcing a $2 billion loss tied to exotic securities that was reminiscent of the financial meltdown in 2008.

Financial analysts scrambled to lower their earnings estimates for JPMorgan, including FBR's Paul Miller, who late Thursday downgraded the bank to "market perform" from "outperform," while slashing his price target to $27 from $50. ...

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'Better Names to Own' Than JPMorgan: FBR

Fri, 11 May 2012 07:17:07 EDT

NEW YORK (TheStreet) -- FBR analyst Paul Miller wasted no time on Thursday in downgrading JPMorgan Chase following CEO James Dimon's announcement of a $2 billion second-quarter trading loss.

Saying there was "little clarity into and a lot of uncertainty surrounding JPMorgan's future earnings," Miller cut his rating for JPMorgan to market perform from outperform, and lowered his price target for the shares to $37 from $50.

Although he believes "this event is largely isolated to JPMorgan and its internal controls," Miller said the announcement would "certainly be fodder for the Washington, D.C. crowd pushing for the Volcker Rule and will certainly increase the headline risk for JP Morgan and the industry." JPMorgan Chairman and CEO Jamie Dimon ...

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First Niagara: Financial Winner

Thu, 10 May 2012 16:17:37 EDT

NEW YORK (TheStreet) -- First Niagara Financial Group was the winner among the largest U.S. financial names on Wednesday with shares rising over 2% to close at $8.73.

The broad indexes were mixed, as investors breathed a sigh of relief after the European Financial Stability Facility decided to release 4.2 billion euro ($5.4 billion) of a 5.2 billion loan payment to Greece, after previously considering a delay of the entire pyment.

Greece showed some progress towards forming a new government, as Fotis Kouvelis, the leader of the Democratic Left party, signaled that his party might be open to forming an alliance with the Socialists and the conservative New Democracy parties. ...

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Banks 'Too Big to Fail,' Bank Shareholders Not

Thu, 10 May 2012 15:19:06 EDT

NEW YORK (TheStreet) -- Shareholders of failing financial holding companies will take it on the chin -- but healthy subsidiary businesses will have a better chance of surviving -- under the Federal Deposit Insurance Corp.'s new resolution authority.

Acting FDIC Chairman Martin Gruenberg says the agency is ready to move beyond its traditional role of resolving failing federally insured banks and thrifts, with staff and processes in place to resolve large failing financial holding companies.

The Dodd Frank Wall Street Reform and Consumer Protection Act of 2010 expanded the FDIC's traditional role, to allow the resolution of entire financial holding companies, rather than just subsidiary banks and thrifts, and Gruenberg said at the Federal Reserve Bank of Chicago Bank Structure Conference on Thursday that the agency's new Office of Complex Financial institutions was ready to "monitor risk within and across these large, complex financial firms from the standpoint of resolution," conduct resolution planning for "potential crisis situations," and "coordinate with regulators overseas regarding the significant challenges associated with cross-border resolution." ...

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6 Bank Revenue Winners and Losers From Jefferies

Thu, 10 May 2012 10:27:39 EDT

NEW YORK (TheStreet) -- Over the next year, continued commercial loan growth and expense reduction will be key for large regional banks to growth their revenues.

Boiling down first-quarter financial results for banks in his firm's coverage universe, Jefferies analyst Ken Usdin named three large banks in his firm's coverage universe that are "best-positioned" to grow pre-provision net revenue over the next year, with three others facing a "tougher fight."

Bank earnings are, of course, continually distorted by a seemingly ever-growing list of one-time items, and at this point in the credit cycle, most large banks are releasing loan loss reserves, by making quarterly provisions for loan loss reserves that total less than their loan charge-offs. This is why it pays to focus on pre-provision net revenue, which nets the one-time items and provisions for loan losses from gross revenue, less expenses. ...

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Fannie Mae: Profit Rebound Winner (Update 2)

Wed, 09 May 2012 16:05:47 EDT

Updated with market close information, more detail from Fannie Mae's earnings announcement and analyst comments.

NEW YORK (TheStreet) -- Fannie Mae was the winner among the largest U.S. financial names on Wednesday with shares rising 14% to close at 30 cents.

The mortgage giant reported first-quarter net income of $2.7 billion, following net losses of $2.4 billion in the fourth quarter and $6.5 billion during the first quarter of 2011. ...

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