119.41 +0.03 (0.03%)
Pre-market: 6:07AM EDT
|Bid||119.21 x 900|
|Ask||119.43 x 800|
|Day's range||119.09 - 120.34|
|52-week range||91.11 - 120.40|
|Beta (3Y monthly)||1.19|
|PE ratio (TTM)||12.21|
|Earnings date||15 Oct 2019|
|Forward dividend & yield||3.60 (3.01%)|
|1y target est||119.08|
The London Bullion Market Association is in “discussions” with JPMorgan after its board member was indicted by the US Department of Justice for a “massive, multiyear scheme” to manipulate the precious metals markets. The LBMA said it had not made any decision to remove Michael Nowak, JPMorgan’s head of precious metals, from its board. “We are still in discussions with JPMorgan,” Aelred Connelly, a spokesman for the LBMA, said.
(Bloomberg) -- JPMorgan Chase & Co. hit a major milestone in its business that caters to the world’s largest hedge funds. And now the bank has even loftier goals.Global customer prime balances jumped 25% this year to surpass $500 billion, according to an internal memo seen by Bloomberg News. “Next stop $1 trillion!” executives including Jonathan Cossey and Charles Chiang, co-heads of prime finance, said in the note on Wednesday. JPMorgan confirmed its contents, declining to comment further.The biggest U.S. bank has invested heavily in electronic trading and boosted its prime brokerage to climb the ranks in stock trading during the past five years. The firm was second among global banks in prime services revenue in 2018, according to data from Coalition Development Ltd., and JPMorgan said in July that client balances hit a record.Prime brokerage units handle relationships with hedge funds, offering trading services and lending securities, and can often be the foundation of banks’ trading units.New capital rules following the financial crisis made the business less profitable and pushed some banks to shed selective clients and look to grab a bigger share of large funds’ business. The JPMorgan target comes just as Deutsche Bank AG, one of the biggest players servicing hedge funds, said it was exiting the business as part of a wide scale restructuring plan.“We continue to gain market share with existing clients, onboard new managers, have made a noticeable splash in the start-up space and our future remains bright with a strong pipeline of new business,” Cossey and Chiang said.The world’s biggest banks generated about $18.3 billion of revenue from prime services in 2018, an 8% increase on a year earlier, according to data from Coalition. Morgan Stanley was the industry’s biggest player followed by JPMorgan and then Goldman Sachs Group Inc., the data show.\--With assistance from Donal Griffin.To contact the reporter on this story: Viren Vaghela in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Ambereen Choudhury at email@example.com, Michael J. MooreFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Benchmarks closed mixed on Wednesday as the Federal Reserve cut federal funds rates by a quarter percentage point, but gave mixed signals for further cuts this year.
The Fed seeks to remain focused on analyzing incoming economic data to determine future moves. Heathy domestic economy and several streamlining efforts are likely continue supporting bank stocks.
The Fed cuts target interest rate by 25 bps to a range of 1.75-2%, a widely expected move to sustain the decade-long economic expansion amid trade concerns.
The Bank of England struck a dovish tone on interest rates on Thursday, raising the prospect it might seek to cut them if Brexit uncertainty persisted in a weak global economy. The bank’s Monetary Policy Committee unanimously voted to keep rates on hold at 0.75 per cent and for the first time said if there was “entrenched uncertainty” over Brexit, “domestically generated inflationary pressure would be reduced”. The BoE would normally be expected to cut rates if domestic inflation persisted below its 2 per cent target and underlying economic growth was, as the bank put it, only “slightly positive”.
As part of its 2019 capital plan, JPMorgan (JPM) announces a 12.5% dividend hike. One should take a look at its fundamentals and prospects before taking any investment decision.
, the US-China trade war and slowing global economic growth continued to bite, according to a survey published on Wednesday. The Business Roundtable, a group of leading US chief executives from nearly 200 companies, said its economic outlook index fell 10.3 points in the third quarter, to a reading of 79.2. While that was significantly above the 50-point benchmark that indicates growth, all three components of the index — plans for hiring, plans for capital investment and expectations for sales — fell during the quarter.
Sanjeev Gupta, the UK metals magnate, has offered to put in $150m of his own money as he attempts to sell a debut high-yield bond. for his InfraBuild business, an Australian steel and recycling company that shelved plans for a stock market flotation earlier this year. InfraBuild is now scaling back the bond deal to $325m due to lacklustre demand from bond fund managers, with Mr Gupta offering to put in the remainder himself as equity.
(Bloomberg) -- When JPMorgan Chase & Co. took over Bear Stearns more than a decade ago, it got two traders with a new trick.Their strategy: Use multiple fake orders to manipulate the prices of precious metals futures. The maneuver, adopted by the traders’ new colleagues at JPMorgan, became part of a spoofing and rigging campaign so expansive that federal authorities have now likened it to a criminal enterprise operating inside the U.S.’s biggest bank.In a criminal indictment unsealed on Monday, U.S. prosecutors accused three JPMorgan traders of rigging futures trades in precious metals for nearly a decade, making millions of dollars for the bank at the expense of counterparties that included the bank’s own clients.The charges were the latest turn in a years-long investigation that has previously yielded guilty pleas from traders at several banks, including two from JPMorgan. Prosecutors said more than a dozen JPMorgan employees ultimately helped make manipulative “spoof” trades for the bank, in part by using the strategy their new colleagues brought in May 2008.That pair, Gregg Smith and Christiaan Trunz, showed their new JPMorgan colleagues “a new style of layering multiple deceptive orders at different prices in rapid succession,” prosecutors wrote. The strategy made their market spoofing more difficult to execute and detect, prosecutors wrote in the indictment of Smith and two others. Trunz pleaded guilty last month and is cooperating with authorities.The strategy was adopted by Michael Nowak, who was JPMorgan’s global head of precious metals trading when he was put on leave last month.Federal prosecutors charged Nowak, Smith and a third man, Christopher Jordan, of “conspiracy to conduct the affairs of an enterprise involved in interstate or foreign commerce through a pattern of racketeering activity” -- counts more commonly known as RICO charges. That language, rarely used in big bank cases, suggests that JPMorgan may face deeper legal jeopardy that goes beyond the individuals who have already been prosecuted.JPMorgan declined to comment.Earlier: JPMorgan’s Metals Desk Was a Criminal Enterprise, U.S. SaysJordan and Nowak appeared in handcuffs in federal court in Newark, New Jersey, where U.S. Magistrate Judge Michael Hammer released them on $250,000 bond. They each face as long as 30 years in prison on the most serious count.Jordan was released to the custody of his parents pending his admission this week into a residential treatment program for alcohol. Hammer said Jordan must abstain from alcohol. “Chris Jordan is innocent of these heavy-handed charges, and we intend to defend him vigorously,” his attorney, Jim Benjamin, said.If directed by court officials, Nowak, 45, should undergo mental health testing or treatment, the judge said. His lawyers, David Meister and Jocelyn Strauber, said it was “truly regrettable” that prosecutors charged him because he did “nothing wrong.” They said he’d be fully exonerated.The judge ordered that they have no contact with co-defendants, witnesses, and current or former employees of JPMorgan’s precious metals desk unless their lawyers are present. Both men will be arraigned Oct. 4 in federal court in Chicago, where the case was brought.Jordan was charged with three counts of conspiracy and fraud. Smith and Nowak were indicted on six charges, including conspiracy, fraud and spoofing. According to the indictment, the JPMorgan traders defrauded bank clients who had bought or sold “barrier options” by trading futures contracts in a way that sought to push the price toward a level where JPMorgan would make money -- or at least away from a price level that would cause the bank to lose money.The Commodity Futures Trading Commission also filed a lawsuit against Nowak and Smith on Monday and settled a suit against Trunz.The JPMorgan investigation grew out of a multibank U.S. crackdown on manipulation of commodities markets using techniques including spoofing, in which traders place orders without intending to execute them to try to move prices in their favor. The Justice Department had already brought criminal charges against 16 people, including traders who worked for Deutsche Bank AG and UBS Group AG. Seven pleaded guilty, one was convicted at trial and another was acquitted.Guilt AdmissionsTrunz and the other former JPMorgan trader who admitted guilt said the manipulation was routine, sanctioned by higher-ups and went on for years.“While at JPMorgan I was instructed by supervisors and more senior traders to trade in a certain fashion, namely to place orders that I intended to cancel before execution,” former trader John Edmonds said at a October 2018 hearing, after admitting to commodities fraud and conspiracy. Edmonds entered into a cooperation agreement with the CFTC in July.Trunz told a federal judge in Manhattan last month that spoofing trades of precious metals was rampant at the bank and that he learned the technique from other traders at Bear Stearns and JPMorgan. Trunz, who entered his guilty plea on Aug. 20, said he manipulated futures markets for gold, silver, platinum and palladium from offices in New York, London and Singapore from 2007 to 2016.Read More: The indictment against Smith, Nowak and JordanJPMorgan bought Bear Stearns in a marriage arranged by the U.S. Federal Reserve during the height of the financial crisis in 2008.Already, people inside JPMorgan were using deceptive trading methods, prosecutors said. Their new colleagues brought new ones. In May, the same month the deal was completed, Smith executed the deceptive-layering technique, the indictment said.The new style involved the layering of multiple deceptive orders at nine different prices in rapid succession that together were larger than the portion visible to other traders in the marketplace, known as “iceberg orders.” Prosecutors said this trading style “took hold of the precious metals desk” at JPMorgan and was adopted by Nowak and other conspirators.The indictment lays out dozens of trades that prosecutors allege are just a tiny fraction of the the thousands of transactions the conspirators made as part of the scheme. The charges also pull from electronic chats between the traders that prosecutors allege serve as examples of the criminal purpose behind the deals.In an electronic chat on Feb. 24, 2009, less than a year after Trunz arrived from Bear Stearns, he had the following conversation with a co-conspirator identified only as “CC-7” in the filing:Trunz: so you know its gregg bidding up on the futures trying to get some offCC-7: sweet mateTrunz: In case you were watching some large bids come into marketCC-7: appreeshCC-7: that worked!(A previous version corrected details of the order for mental health evaluation for Nowak.)(Updates with charges against each defendant)\--With assistance from Neil Weinberg and Greg Farrell.To contact the reporters on this story: Tom Schoenberg in Washington at firstname.lastname@example.org;David Voreacos in Newark, New Jersey at email@example.comTo contact the editors responsible for this story: Jeffrey D Grocott at firstname.lastname@example.org, David S. JoachimFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Germany’s biggest tax scandal has landed the masters of the financial universe with an unflattering label: criminal organizations.It’s an allegation not leveled by finger-wagging populist crusaders, but prosecutors seeking to push their case beyond a probe of lost revenue. Now two dozen financial institutions caught up in the so-called Cum-Ex dragnet are suspected of forming criminal organizations, money laundering, and in some cases investor fraud, a court document shows.Equating bankers with behavior associated with mobsters lets prosecutors pack more punch into a case exploring whether financial institutions and wealthy individuals illegally engaged in controversial transactions that allowed multiple dividend-tax refunds. The Cum-Ex deals, which peaked between 2007 and 2011 before the government shut them down, cost the German treasury more than 10 billion euros ($11 billion) in lost revenue, lawmakers estimate.While tax crimes remain the central issue, prosecutors have also found evidence that some private investors may have been duped and that the trading strategy may have entailed money laundering by sharing illicit profits, the ruling, an search warrant, seen by Bloomberg News says. The warrant was used by the authorities to raid the offices of Deutsche Boerse AG’s Clearstream unit last month, the central depository for any shares in Germany. The court document mentioned more than 50 probes by Cologne prosecutors.Adding CrimesThe investigations focus on banks, brokers and asset managers over various roles that were necessary for the Cum-Ex transactions, including buyer, short-seller, custody bank and providers of leverage. According to the latest findings, affiliated companies within a group often took on several of these roles, according to the document. Besides brokers and investment companies, the warrant list more than 20 lenders, among them Morgan Stanley, JPMorgan Chase & Co. and Bank of America Merrill Lynch.JPMorgan, Bank of America and Morgan Stanley declined to comment. Deutsche Boerse is fully cooperating with the authorities, a company spokesman said, declining to comment further.A spokesman for Cologne prosecutors said each investigation determines whether probing additional offenses besides tax evasion is warranted, depending on the circumstances. He declined to comment on individual cases.Separately, Peter Biesenbach, the Justice Minister of North-Rhine Westphalia, told reporters on Tuesday that Cologne prosecutors are now conducting 56 probes with a total of about 400 suspects related to Cum-Ex. The staff devoted to these cases is being doubled from five prosecutors to 10, according to a transcript of his speech. North-Rhine Westphalia is Cologne’s home state.“The Cologne investigations have now reached a point that prosecutors say that Cum-Ex wasn’t a legal tax-driven trading strategy, but organized white-collar crime of unimaginable magnitude,” the minister said.Prosecutors like to add crimes like money laundering in complex investigations because they hand them an investigative toolbox that’s out of reach when only tax crimes are involved, said Marco Mansdoerfer, a criminal law professor at Saarbruecken University. It also makes it easier to add more suspects, he said.Complex Structure“There’s a clear tendency to use it in white-collar crime probes, though originally it was intended only for mafia-type of action,” Mansdoerfer said. “It’s a tactical move, because you want to investigate more broadly and use these intelligence methods.”Targeting high finance in a similar vein to drug cartels or the mafia would have few tangible material effects should prosecutors decide to charge banks, since possible fines are mostly based on overall profits made, regardless of the number of offenses involved. For employees and managers who are probed individually, on the other hand, a conviction for additional crimes would typically increase prison terms.Before prosecutors file charges, they often drop the additional crimes again to reduce complexity during trial, said Mansdoerfer. As useful as prosecutors may find it at the investigative stage, it’s easier to try a case under tax crimes alone, according to the professor.The first trial looking into Cum-Ex started on Sept. 4 in Bonn, where the court is hearing a case against two former traders, who are cooperating. Their indictment only cites aggravated tax evasion as the alleged crime.Tomorrow, one of the main defendants, Martin Shields, is scheduled to testify. His appearance, slated for two consecutive days, marks a hotly anticipated moment in the Cum-Ex saga, which relied on a complex web of interactions by different financial institutions, many of which have now been caught up in the investigation.(Updates with doubling of Cologne prosecutors’ staff in eigth paragraph.)To contact the reporter on this story: Karin Matussek in Berlin at email@example.comTo contact the editors responsible for this story: Anthony Aarons at firstname.lastname@example.org, Benedikt KammelFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- A pair of lawsuits targeting entities that JPMorgan Chase & Co. and Capital One Financial Corp. use to bundle credit-card loans into bonds could threaten the future of the $563 billion market for debt backed by consumer obligations.At issue is whether credit card interest rates can be considered usurious. A Civil War-era piece of legislation has long shielded national banks from having to comply with state regulations, some of which cap the maximum rate on loans at as little as 5%. But borrowers are arguing that the packaging of credit-card debt into notes to sell to investors removes it so far from a bank that the shield shouldn’t apply.The defendants say the suits are baseless because banks still maintain customer relationships and charge interest -- even if they’ve bundled rights to receive the interest into securities.Should the plaintiffs prevail, the ruling would chill the market for bonds tied to consumer loans, industry groups say, forcing banks to keep more risk on their balance sheets and stifling their ability to extend credit. The fallout could ultimately extended to the $9 trillion mortgage-backed securities market, causing home loans to fall under a patchwork of state regulations, they warn.“Is it something that people worry about? Absolutely,” said Scott Cammarn, co-chair of the financial services group at Cadwalader, Wickersham & Taft in Charlotte, North Carolina. “It’s worried about by originators. It’s worried about in the secondary market.”The plaintiffs -- a group of New York credit-card users paying interest rates on their balances in excess of the state usury limit of 16% -- are seeking class-action status for the cases. U.S. consumers pay an average interest rate of 17.1% on their credit-card debt, according to the Federal Reserve.In 2015, the Second Circuit Court of Appeals -- which hears cases from New York, Connecticut and Vermont, ruled that banks’ shield from usury laws doesn’t apply if a lender writes off bad credit card loans and sells the accounts to a non-bank debt collector.The cardholders are arguing that the process of bundling credit card loans into bonds -- which requires a bank to sell the debt into a separate bankruptcy-remote vehicle -- is effectively the same type of transfer, making the credit-card rates usurious under state law and therefore uncollectable.A favorable ruling for the plaintiffs would apply to securitized bonds containing credit-card loans made to borrowers residing within the Second Circuit’s jurisdiction. But market participants say it would likely only be a matter of time before similar cases popped up elsewhere, tied to other types of debt.‘Securitization Scheme’JPMorgan and Capital One themselves aren’t being sued. Rather, it’s the entities set up to help issue the ABS, along with the companies that help supervise the trusts on behalf of investors.“Through this securitization scheme, defendants have engaged in a standard practice and policy of charging, collecting, receiving and attempting to collect interest from plaintiffs and class members in excess of the permissible interest rate,” lawyers for the plaintiffs wrote in a June 6 filing against the JPMorgan-linked entities. “Non-banks cannot charge usurious interest rates merely because they purchased or were assigned loans by national banks.”Spokeswomen for JPMorgan and trustee Bank of New York Mellon Corp. declined to comment, while representatives for Capital One and trustee Wilmington Trust didn’t immediately respond to requests for comment.The plaintiff “entered into a written cardmember agreement with JPMorgan Chase Bank, which remains in force,” the defendants argued in an Aug. 6 filing. The plaintiff “equates JPMorgan’s securitization of his receivables with the outright sale of his credit-card account. Courts have consistently and repeatedly rejected that equation.”A court decision that the bundled debt can be held to state-level restrictions could “dramatically upset” the lending industry, according to trade groups the Bank Policy Institute and the Structured Finance Association.Securitization helps banks limit lending risks and reduce borrowing costs, which are passed on to consumers and businesses in the form of lower interest rates. The structures allow banks to lend to riskier people, the pair wrote in a Aug. 13 brief.MBS RiskCredit-card and other asset-backed securities make up about $563 billion of the broader market for securitized bonds. But the trade groups argue that a court decision favoring the plaintiffs could have implications for a much larger universe of debt, including $9 trillion of mortgage-backed securities.That’s because of the structural similarities between ABS and MBS. When banks take bundles of consumer credit card loans or mortgages and package them into bonds, they sell the debt to bankruptcy-remote vehicles, helping investors get exposure to pools of individual borrowers without having to worry about the financial health of the bank that made the loans.The banks maintain the lending relationship with consumers, but pass on the right to receive interest and principal payments to the bond investors. In many cases, banks also hold onto a slice of the securities as a form of “skin in the game.”Still, if the plaintiffs prevail, it’s unlikely that the securitization market would dry up overnight. For one, the litigation only affects borrowers in select states. And while credit card and auto loan interest rates for borrowers can climb well into the double-digits, mortgage rates are typically much lower, often below the most stringent usury definitions. The average 30-year mortgage rate currently sits at about 3.56%, near a historical low.The plaintiffs have until Sept. 17 to respond to the motion to dismiss the Chase case. In the Capital One litigation, defendants have until Sept. 27 to serve a motion to dismiss the suit.To contact the reporter on this story: Claire Boston in New York at email@example.comTo contact the editors responsible for this story: Nikolaj Gammeltoft at firstname.lastname@example.org, Boris Korby, Shannon D. HarringtonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Sanjeev Gupta is making deep concessions to debt investors to salvage the industrialist’s first attempt at a high-yield bond deal, which missed its planned pricing date after drawing a tepid response from investors. this month to raise $475m in debt for InfraBuild, an Australian steel and recycling business, after plans for a stock market flotation of the unit were shelved. JPMorgan on Tuesday added a new collateral package to the deal, giving bondholders a stronger claim on InfraBuild’s assets, in a bid to generate more demand.
WeWork’s chief executive Adam Neumann told employees he had been “humbled” by the aborted initial public offering of his lossmaking property group, admitting he needed to learn lessons about running a public company. its eagerly-anticipated listing, Mr Neumann expressed his contrition over the handling of the IPO process, according to people who saw the presentation. Amid recriminations over the derailed process, one person who worked closely with Mr Neumann said his outsized personality played a “huge role”.
(Bloomberg) -- U.S. prosecutors took an unusually aggressive turn in their investigation of price fixing at JPMorgan Chase & Co., describing its precious metals trading desk as a criminal enterprise operating inside the bank for nearly a decade.The prosecutors charged the head of JPMorgan’s global precious metals trading operation and two others on Monday, accusing them of “conspiracy to conduct the affairs of an enterprise involved in interstate or foreign commerce through a pattern of racketeering activity.”That’s a reference to the Racketeer Influenced and Corrupt Organizations Act, or RICO, a law often used against organized crime rings. The U.S. has rarely invoked RICO law in big bank cases. Its use suggests that JPMorgan may face deeper legal jeopardy, going beyond the several individuals who have already been prosecuted.Former prosecutors agreed the move was bold, with at least one questioning whether the Justice Department was overreaching. Others said the use of RICO was merited given the complexity and duration of the manipulation, echoing the U.S. official who announced the charges Monday morning.“Based on the fact that it was conduct that was widespread on the desk, it was engaged in in thousands of episodes over an eight-year period -- that it is precisely the kind of conduct that the RICO statute is meant to punish,” Assistant Attorney General Brian Benczkowski told journalists.“We’re going to follow the facts wherever they lead, whether it’s across desks here or at any other bank or upwards into the financial institution,” he added.Peter Carr, a Justice Department spokesman, said the RICO law has been invoked in cases involving small trading operations and in corporate-conduct cases. But he and several former prosecutors said they couldn’t recall another use of the law to prosecute traders at a big bank.This case differs from previous market-rigging cases in other ways, too, including the number of bank personnel who have been implicated by the government. JPMorgan pleaded guilty in a 2015 investigation of price fixing in currency markets, a matter in which one of the bank’s traders was charged. In the metals-manipulation matter, more than a dozen people participated in the scheme, prosecutors said. Two of them have pleaded guilty and are cooperating with authorities.The head of the bank’s global precious metals desk, Michael Nowak, 45, and two others ripped off market participants and even clients as they illegally moved prices for gold, silver, platinum and palladium, the Justice Department said Monday. Nowak was placed on leave last month, a person familiar with the matter has said. The other traders charged were Gregg Smith, 55 and Christopher Jordan, 47.JPMorgan declined to comment. Smith and Jordan didn’t respond to requests for comment. Nowak has done nothing wrong and “it’s truly regrettable that the DOJ decided to go forward” with a prosecution of him, said his attorneys, David Meister and Jocelyn Strauber of Skadden, Arps, Slate, Meagher & Flom LLP.‘Undeterred’ ProsecutorsThe indictments, which come after the government lost two manipulation cases in court, are a good indication that prosecutors are “undeterred and are becoming more, not less, aggressive” in cracking down on market manipulation, said Benjamin Singer, a former head of the Justice Department’s securities fraud unit who is now at O’Melveny & Myers LLP in Washington.Ex-prosecutor Justin Weddle said the Justice Department was doubling down on already-aggressive efforts to crack down on spoofing, the practice of making buy and sell orders for precious metals futures contracts with the intent to cancel those orders before execution.Market spoofing was criminalized in 2011, he said, noting that many of the trades and text messages described in this indictment predate that. “It is not obvious to me how the RICO charges satisfied the Department’s internal guidelines saying that the Criminal Division will not approve ‘imaginative’ prosecutions under RICO, which are far afield from the congressional purpose of the RICO statute,” said Weddle, of Weddle Law Plc.Prosecutors said the three men charged on Monday placed fraudulent orders electronically and by phone calls to floor brokers in trading pits. They were able to generate millions of dollars in trading profits for themselves and JPMorgan and cause millions in losses for counter-parties, prosecutors said.The practice began before JPMorgan’s May 2008 purchase of Bear Stearns and grew even larger after that acquisition, the U.S. said. Jordan also engaged in manipulation while with Credit Suisse Group AG for about six months in 2010, prosecutors said. Credit Suisse declined to comment.The banks weren’t identified in the filings, but their descriptions match those of JPMorgan, Bear Stearns and Credit Suisse.Jordan and Smith also lied to law enforcement investigators and bank compliance officers for years, according to the indictment. In 2010, Jordan intentionally lied to an investigator for the Commodity Futures Trading Commission about manipulation of silver prices, while Smith lied three years later to a CME Group investigator about his trading practices, it said.Nowak and Jordan also lied on annual statements certifying that they were in compliance with JPMorgan’s code of conduct in 2008 and 2009, while Smith lied in 2009 and 2010, they said.Smith is expected to make an initial appearance Monday in federal court in New York, and Nowak and Jordan will appear in federal court in New Jersey. The case was brought in federal court in Chicago.The JPMorgan investigation grew out of a multibank U.S. crackdown on manipulation of commodities markets using techniques including spoofing, in which traders place orders without intending to execute them to try to move prices in their favor. The Justice Department had already brought criminal charges against 16 people, including traders who worked for Deutsche Bank AG and UBS Group AG. Seven pleaded guilty, one was convicted at trial and another was acquitted.Earlier: JPMorgan Traders Charged by U.S. With Rigging Metals Deals(Updates with comments from former prosecutors)\--With assistance from Neil Weinberg, Greg Farrell, Michelle F. Davis and Patrick Winters.To contact the reporters on this story: Tom Schoenberg in Washington at email@example.com;David Voreacos in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Jeffrey D Grocott at email@example.com, David S. JoachimFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Digital payments space heats up with growing proliferation of instant and same-day deposit services being offered by JPMorgan Chase, Square, PayPal and others.
(Bloomberg) -- Federal prosecutors are closing in on JPMorgan Chase & Co. officials in an investigation of price rigging in precious metals markets.With help from at least two of the bank’s former traders who pleaded guilty, the government is looking to bring charges against people higher up the chain at the bank, two people familiar with the years-old inquiry said. Just last month, a managing director who oversaw global precious-metals trading was placed on leave along with another employee, other people said.The traders who admitted guilt said the manipulation was routine, sanctioned by higher-ups and went on for years. “While at JPMorgan I was instructed by supervisors and more senior traders to trade in a certain fashion, namely to place orders that I intended to cancel before execution,” former trader John Edmonds said at a October 2018 hearing after pleading guilty to commodities fraud and conspiracy.The JPMorgan investigation grew out of a multibank U.S. crackdown on manipulation of commodities markets using techniques including spoofing, in which traders place orders without intending to execute them to try to move prices in their favor. The Justice Department has brought criminal charges against 16 people, including traders who worked for Deutsche Bank AG and UBS Group AG. Seven pleaded guilty, one was convicted at trial and another was acquitted.Deutsche Bank, HSBC Holdings Plc and UBS last year agreed to pay a total of about $50 million to settle civil claims by the Commodity Futures Trading Commission that the firms’ traders engaged in spoofing techniques to manipulate prices of precious-metals futures. Deutsche Bank agreed to pay $30 million, UBS $15 million and HSBC $1.6 million. The banks didn’t admit or deny wrongdoing.Peter Carr, a Justice Department spokesman, declined to comment. The bank disclosed the Justice Department inquiry in company filings earlier this year, saying it was cooperating with the Justice Department and other authorities.Michael Nowak, the managing director who was previously named in a civil suit, was placed on leave in August along with Gregg Smith, according to the people familiar with the matter. Nowak didn’t respond to a request for comment, and Smith couldn’t be reached. The moves were reported earlier by Reuters.JPMorgan officials believe the probe is limited to the bank’s trading desk, one of the people familiar with the matter said. Investigators are examining a paper trail related to the spoofing activities, another person said, in addition to drawing on testimony from former insiders.One of those insiders, Christiaan Trunz, a former trader for Bear Stearns and JPMorgan, told a federal judge in Manhattan last month that spoofing trades of precious metals was rampant at the bank for nearly a decade and that he was taught how to do it from other traders at JPMorgan. Trunz, who pleaded guilty on Aug. 20 to two federal fraud charges, said he manipulated futures markets for gold, silver, platinum and palladium from offices in New York, London and Singapore from 2007 to 2016.“It is understood that spoofing was a strategy that we used to trade precious metals futures,” Trunz said.Trunz was echoing descriptions offered by Edmonds, another trader, who several months earlier pleaded guilty for transactions involving silver futures. He said the conspiracy ran from 2009 to 2015 and involved hundreds of trades that he made personally. Edmonds said he was taught how to rig the market by veterans and supervisors.“I was instructed that if a client wished to sell futures I should simultaneously place both bids and offers with the intent of canceling the bids prior to execution,” Edmonds said during his plea hearing.Edmonds said the purpose was to falsely transmit liquidity and price information in order to deceive other market participants about the supply and demand so they would trade against the orders that JPMorgan wanted to execute.“We created market activity which artificially drove the sale price up and induced other market participants to purchase at an inflated price,” he said. Edmonds entered into a cooperation agreement with the CFTC in July.After Edmonds pleaded guilty, JPMorgan was hit with a proposed class action lawsuit by investors that also names Nowak and another onetime managing director, Robert Gottlieb. Gottlieb didn’t respond to a request for comment.That civil case was put on hold in February after the Justice Department intervened, claiming that the litigation could harm its criminal investigation.\--With assistance from Michelle F. Davis, Mark Burton and Ben Bain.To contact the reporters on this story: Tom Schoenberg in Washington at firstname.lastname@example.org;Joe Deaux in New York at email@example.comTo contact the editors responsible for this story: Jeffrey D Grocott at firstname.lastname@example.org, David S. Joachim, Peter BlumbergFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- As bankers discussed Saudi Aramco’s initial public offering at the Ritz Carlton hotel in Dubai last week, a drone attack was being planned to hit the heart of its operations over the weekend. It caused Saudi Arabia to halve its oil output and may cut the valuation of Aramco’s milestone deal.The giant oil producer has accelerated preparations for a share sale that could happen as soon as November in Riyadh. Dozens of bankers from Citigroup Inc. to JPMorgan Chase & Co. met last week to work on the deal, with analyst presentations scheduled for Sept. 22, people familiar with the matter have said.“Crown Prince Mohammed bin Salman will push the company to demonstrate that it can effectively tackle terrorism or war challenges,” analysts led by Ayham Kamel, head of Middle East and North Africa research at the Eurasia Group, said in a report. “The attacks could complicate Aramco’s IPO plans.”In an attack blamed by the U.S. on Iran, a swarm of drones laden with explosives set the world’s biggest crude-processing plant ablaze. Floating a minority stake of the oil giant, officially known as Saudi Arabian Oil Co., is part of Prince Mohammed’s efforts to modernize and diversify the economy.The attacks underscored geopolitical tensions in the region. Iran denied responsibility, which was instead claimed by Iranian-backed Houthi rebels in Yemen.Oil prices surged by the most on record to more than $71 a barrel after the strike removed about 5% of global supplies. The main Saudi stock index Sunday fell as much as 3.1%, leading losses in the Gulf. Back in 2017, investors suspected that Saudi government-related funds swooped in to support the market after the imprisonment of local billionaires at the Ritz-Carlton in Riyadh. That also happened amid the international crisis following columnist Jamal Khashoggi’s murder at the Saudi consulate in Istanbul.Here’s more from analysts and investors:Eurasia“The latest attack on Aramco facilities will have only a limited impact on interest in Aramco shares as the first stage of the IPO will be local. The international component of the sale would be more sensitive to geopolitical risks”Current valuation estimates for Aramco and its assets might not fully account for geopolitical risksNOTE: Prince Mohammed, the architect of the IPO, has said he expects Aramco to be valued at over $2 trillion, but analysts see $1.5 trillion as more realisticAl Dhabi Capital, Mohammed Ali Yasin“I think this attack may delay the IPO even on the local exchange, and could affect the valuation negatively, as the investors have seen a live demonstration of the risk levels of the future revenues and business of the company. That was very low prior to this weekend attack”“Aramco has one main source of revenue, oil. That is its strength, but now it is becoming its biggest weakness if it gets disrupted”United Securities, Joice MathewThis “will force investors to go back to the drawing board and re-evaluate their risk models on Aramco”“Even though this is a rare event, which could be potentially categorized as 4 or 6 sigma levels, the geopolitical risk premium on Aramco’s valuation model would show a sharp increase”“As far as the pricing is concerned, my view is that there may not be much of an impact if the government is contemplating a 1% listing on the Tadawul. I think the government has the power and ability to influence the decisions of anchor investors there”Tellimer, Hasnain Malik“Ultimately the security risk is not so acute that it outweighs oil price, oil output and free float drivers of the valuation”This attack “also provides an opportunity for Aramco to demonstrate the redundancy and resilience of its supply chain by minimizing disruption to customers and thereby helping to mitigate the valuation impact of this risk”Qamar Energy, Robin Mills“It will be all but impossible to proceed with the IPO if there are ongoing attacks”“Valuing Aramco like Shell or ExxonMobil gets us to about $1.2-1.4 trillion. But that would drop significantly if we apply company-specific risk factors”Al Ramz Capital, Marwan Shurrab"The attacks could impact foreign sentiment for the IPO, but I don’t see a substantial hit to the valuation at this stage""Geopolitical risk has always been an important factor for valuations across the Middle East region. Aramco will have to demonstrate its financial resilience toward such incidences to gain investors confidence”\--With assistance from Mahmoud Habboush.To contact the reporters on this story: Shaji Mathew in Dubai at email@example.com;Filipe Pacheco in Dubai at firstname.lastname@example.org;Sarah Algethami in Riyadh at email@example.comTo contact the editors responsible for this story: Shaji Mathew at firstname.lastname@example.org, Paul Wallace, Claudia MaedlerFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
JPMorgan’s share price hit an all-time high of nearly $119 late last week, cementing its dominance of the world ranking by market capitalisation. In Jamie Dimon, the larger-than-life bank has a larger-than-life boss — and has had for the past 14 years. Mr Dimon may be the last true example of the species.
Hoy Health launched less than two years ago, but sees strong growth potential in paving the way to the Latin American health care market.