Bank CEOs questioned on consumer protections, social issues
The bank leaders testified at a time when prices for food and other necessities are the highest in decades. While acknowledging there are ways Zelle can be improved, the CEOs tried to differentiate Zelle from other peer-to-peer payment networks. The CEOs said services such as Cash App, Venmo or PayPal have significantly higher cases of fraud than Zelle. Several senators also brought up the influence large asset managers like BlackRock and Vanguard have on corporations regarding social policies, because the asset managers are often the largest single shareholder in many of these companies. “They are looking more like Wall Street than Main Street these days,” Brown said to reporters after the hearing ended.wftv.com
Bank CEOs questioned on consumer protections, social issues
The CEOs of the nation’s biggest banks returned to Capitol Hill for a second day Thursday, and Senate Democrats strongly urged them to do more to help and protect their customers, while Republicans questioned whether banks should weigh in on hot-button social issues.
Bank CEOs warn that US economy faces 'daunting' challenges
When asked by lawmakers, the bank CEOs seemed increasingly skeptical that the Fed can achieve its goal of a "soft landing," where inflation is brought back down without causing widespread damage to the economy. It's a decision gun control advocates have pushed for, potentially to help catch surges of gun sales ahead of a mass shooting. Rep. Roger Williams, R-Texas, pushed the bank CEOs on whether they would follow the payment networks’ decision. In response, all six CEOs said they would not stop legal gun sales and would protect consumers’ privacy. Instead, the CEOs of three new banks were brought in: Andy Cecere of U.S. Bank, William Demchak of PNC Financial, and Bill Rogers Jr. of Truist.wftv.com
Bank CEOs warn of 'daunting' challenges from inflation
It's a decision gun control advocates have pushed for, potentially to help catch surges of gun sales ahead of a mass shooting. Rep. Roger Williams, R-Texas, pushed the bank CEOs on whether they would follow the payment networks’ decision. In response, all six CEOs said they would not stop legal gun sales and would protect consumers’ privacy. The Wall Street CEOs spoke about the current difficulties in the U.S. and global economy. Along with Fraser, JPMorgan CEO and Chairman Jamie Dimon, gave a darker than normal outlook.wftv.com
JPMorgan CEO Jamie Dimon: 'Why can't we get it through our thick skulls?' America boosting oil and gas production is 'not against' climate change
"Because of high oil and gas prices, the world is turning back on their coal plants. It is dirtier," Jamie Dimon said Tuesday, according to Yahoo.news.yahoo.com
Ukraine will pursue war-crimes charges against leaders of JPMorgan Chase, Citi, and HSBC over Russia financing, Zelenskyy's economic advisor says
Oleg Ustenko told CNBC that Ukraine's justice and security services were gathering data on Western banks he says are financing the Russian state.news.yahoo.com
Asian shares mixed after China says growth weakened in 2Q
Share prices were mixed in Asia on Friday after China reported its economy contracted by 2.6% in the last quarter as virus shutdowns kept businesses closed and people at home. The Kospi in Seoul was up 0.1% at 2,324.29 and shares also rose in India and Taiwan. Official data show the Chinese economy shrank by 2.6% compared with the January-March period's already weak quarter-on-quarter rate of 1.4%. Compared with a year earlier, which can hide recent fluctuations, growth slid to a weak 0.4% from the earlier quarter's 4.8%. Small-company stocks fell more than the broader market in another signal that investors are worried about economic growth.wftv.com
Stocks fall as JPMorgan warning helps send banks lower
Financial Markets Wall Street Statues adorn the facade of the New York Stock Exchange Thursday, July 14, 2022, in New York. (AP Photo/John Minchillo) (John Minchillo)NEW YORK — (AP) — Stocks closed lower on Wall Street Thursday and banks were among the biggest weights on the market following weak earnings and a warning from JPMorgan Chase. NEW YORK (AP) — Stocks fell broadly in afternoon trading on Wall Street Thursday and banks were among the biggest weights on the market following weak earnings and a warning from JPMorgan Chase. They’re nearer than they were before.”Inflation and the Federal Reserve's fight against it remain key concerns for Wall Street. “A meaty Fed rate hike alone does not rule out an opportunity for a soft landing, but the window is shrinking."wftv.com
JPMorgan 2Q profit drops; CEO warns of economic challenges
Earns JPMorgan Chase FILE - Chase Bank ATMs are shown, Thursday, March 25, 2021, in New York. The nation’s largest bank by assets said Thursday that it earned a profit of $8.65 billion, or $2.76 per share in the period. That compares to a profit of $11.95 billion, or $3.78 per share, in the same period a year ago. Total revenue at the bank was $30.7 billion in the second quarter, compared to $30.5 billion in the same period a year earlier. JPMorgan executives said the high inflation sweeping the world is affecting customers, who are spending more on gasoline and other essentials.wftv.com
Asian markets mixed after Wall St bond sell-off
(AP Photo/John Minchillo, file) (John Minchillo)BEIJING — (AP) — Asian stock markets were mixed Tuesday following a bond sell-off on Wall Street amid anxiety about higher U.S. interest rates. Wall Street's benchmark S&P 500 index rose 0.3% on Monday while the market price of a 10-year Treasury bond fell. Markets are “trading in a holding pattern” while traders wait for the Federal Reserve's next moves on interest rates, said Yeap Jun Rong of IG in a report. Then, it reached its highest point since 2018 amid expectations for the Federal Reserve to raise interest rates aggressively. The yen is depressed because Japanese interest rates have stayed near record lows while rates are rising in the United States and Europe.wftv.com
Wall Street ticks higher as recession watch remains murky
Stocks are off to a higher start on Wall Street Monday, June 6, 2022 led by more gains in big tech companies. (AP Photo/John Minchillo, file) (John Minchillo)NEW YORK — (AP) — U.S. stocks are ticking higher Monday as Wall Street keeps wrestling with whether the economy will successfully avoid a recession amid rising interest rates and high inflation. The S&P 500 was 0.7% higher, shortly before 2 p.m. Eastern time. Amazon was the biggest force pushing the S&P 500 higher, accounting for nearly a sixth of the index’s gain all by itself. Big swings could still be ahead for Wall Street this week, particularly on Friday when the U.S. government releases its latest monthly update on inflation.wftv.com
JPMorgan employees describe growing 'paranoia' as the company tracks their office attendance, calls, calendars, and more — with one worker even installing a 'mouse jiggler' to evade 'Big Brother'
More than half a dozen employees at America's largest bank tell Insider why the firm's surveillance leaves them feeling fearful and untrusted.news.yahoo.com
CEO pay rose 17% in 2021 as profits soared; workers trailed
The median pay package for the CEOs of the biggest U.S. companies rose 17.1% in 2021 as the economy rebounded and company profits and stock prices jumped. CEO pay took off as stock prices and profits rebounded sharply as the economy roared out of its brief 2020 recession. Because much of a CEO's compensation is tied to such performance, their pay packages ballooned after years of mostly moderating growth. Surveys suggest Americans across political parties see CEO pay as too high, and some investors are pushing back. Even so, only 31% of investors at JPMorgan Chase’s annual meeting of shareholders recently gave a thumbs up on Dimon’s pay package.wftv.com
CEO pay up 17% as profits, stocks soar; workers fall behind
CEO pay took off as stock prices and profits rebounded sharply as the economy roared out of its brief 2020 recession. Because much of a CEO’s compensation is tied to such performance, their pay packages ballooned after years of mostly moderating growth. Only about a quarter of the typical pay package for all S&P 500 CEOs last year came as actual cash they could pocket. Surveys suggest Americans across political parties see CEO pay as too high, and some investors are pushing back. Even so, only 31% of investors at JPMorgan Chase’s annual meeting of shareholders recently gave a thumbs up on Dimon’s pay package.wftv.com
What Are Civil Rights Audits, and Why Are Companies Doing Them?
Calls for U.S. companies to perform what are known as civil rights audits grew in the wake of the protests that erupted across the U.S. in 2020 after the murder of George Floyd. They’ve been promoted by advocates as a way to help corporations understand and address their role in creating or sustaining racial disparities. They’ve also been dismissed by JPMorgan Chase & Co. Chief Jamie Dimon for adding “bureaucracy and BS,” although his company later agreed to conduct a narrow analysis. Sharehwashingtonpost.com
JPMorgan 1Q profit up sharply, helped by improving economy
JPMorgan Chase saw its first quarter profits jump nearly five fold from a year earlier, as the improving economy allowed the bank to release roughly $5 billion from its loan-loss reserves that it had stored away in the early weeks of the pandemic.
Optimistic banks start moving 'bad' loans back to 'good'
(AP Photo/Mark Lennihan)CHARLOTTE, N.C. – The pandemic and recession aren’t over by a long shot, but banks are feeling optimistic enough to start taking potentially “bad” loans off their books and move them back into the “good” pile. Citigroup had a similar story, releasing $1.5 billion of its loan-loss reserves that it had set aside earlier last year. Still, those amounts are just a fraction of the tens of billions of dollars into their so-called loan-loss reserves to cover potentially bad loans in the first months of the pandemic. In releasing funds from loan-loss reserves, the banks cited the improvement in the economy. JPMorgan still has more than $30 billion tied up in its loan-loss reserves, and banks like Citi and Wells have similar figures on their balance sheets.
JPMorgan's profits jump as economy, investment bank recovers
JPMorgan Chase & Co., the nations largest bank by assets, said its fourth quarter profits jumped by 42% from a year earlier, as the firms investment bank division had a stellar quarter and the banks balance sheet improved despite the pandemic. Excluding one-time items, the bank earned $3.07 a share, which is well above the $2.62 per share forecast analysts had for the bank. Banks had set aside tens of billions of dollars to cover potentially bad loans, and JPMorgan had been particularly aggressive in setting aside funds early in the pandemic. The driver of JPMorgan's profits this quarter was the investment banking business. The corporate and investment bank posted a profit of $5.35 billion compared with $2.94 billion in the same period a year earlier.
Bid to address health costs by 3 corporate giants is over
A health care venture created in 2018 by the three corporate giants to attack soaring care costs will shutter only a couple years after launching. (AP Photos, File)INDIANAPOLIS – A health care venture conceived by Amazon, Berkshire Hathaway and JPMorgan to attack soaring costs is dissolving. Haven, which was formed in 2018 by the three U.S. corporate giants, will cease operations by the end of February, a company spokeswoman said Monday. Health care costs have grown faster than wages and inflation for years, stressing families and employers. It started new designs for health care benefits that eliminated patient out-of-pocket payments like deductibles and coinsurance and encouraged access to primary care.
Bank profits remain resilient despite lingering pandemic
In the early months of the U.S. pandemic, banks set aside tens of billions of dollars to cover losses that could come from loans that were suddenly going bad. On top of the stimulus, banks entered into this pandemic the healthiest they’ve been in years and certainly healthier than they were before the financial crisis of 2008. JPMorgan set aside $611 million to cover potentially bad loans in the third quarter, a fraction of the $10.47 billion the bank set aside to cover bad loans in the second quarter. On Wednesday, Bank of America said it set aside $1.4 billion to cover potentially bad loans, far less than the $5.1 billion it set aside three months earlier. Most of the worry seems to reflect investors' uncertainty about whether banks will have to set aside additional billions in the future.
JPMorgan, Citi profits improve amid signs of recovery
Both Citi and JPMorgan set aside fewer funds to cover potentially bad loans, contributing to the improvement in their third-quarter results. JPMorgan had $611 million in loan loss provisions this quarter, a fraction of the $10.47 billion the bank set aside in the second quarter. Meanwhile Citigroup’s provision for credit losses was $2.26 billion in the third quarter compared to $7.9 billion the quarter before. Citi said its third-quarter net income fell to $3.23 billion from $4.91 billion a year earlier. JPMorgan and Citi were the first of the major banks to report its results this week.
JPMorgan puts $30B toward fixing banking's 'systemic racism'
CHARLOTTE, N.C. – JPMorgan Chase said Thursday it will extend billions in loans to Black and Latino homebuyers and small business owners in an expanded effort toward fixing what the bank calls “systemic racism” in the country’s economic system. “Systemic racism is a tragic part of America’s history,” said JPMorgan Chase CEO Jamie Dimon in a statement. Citigroup announced last month it is committing $1 billion toward closing “the racial wealth gap” in the United States, including $550 million toward homeownership programs for racial minorities. He noted that there’s a 30% gap between Black and white homeownership, amounting to about 4.5 million households. JPMorgan was one of 27 major New York-based companies that joined a program to recruit 100,000 workers from the city's low-income, predominately Black, Latino and Asian communities over the next 10 years.
Citi picks Jane Fraser as next CEO, first woman in that role
NEW YORK Citigroup announced that Jane Fraser would succeed Michael Corbat as the bank's next chief executive, making Fraser the first woman to ever lead a Wall Street bank. Fraser is currently head of Citi's global consumer banking division, a major part of the bank that includes checking and savings accounts but also Citi's massive credit card business. Fraser will be the first woman to lead one of Wall Street's big six banks. JPMorgan Chase's Jamie Dimon has had women as his second-in-command for years, but shows no signs of stepping down from the CEO role. Corbat turned Citi into a much smaller and stable entity, focusing on its credit card businesses and its international banking franchise.
Banks set aside billions, bracing for more economic pain
Thanks largely to the funds set aside for bad loans, JPMorgan's profit fell by half in the April-June quarter, Citigroup's sank about 70% and Wells Fargo reported its first quarterly loss since the financial crisis of 2008. In its second-quarter results, JPMorgan said it set aside $10.5 billion to cover potentially bad loans. Thats on top of the $8.3 billion the bank set aside in April, when the pandemic was only just starting to impact the U.S. economy. Citi, which is heavily exposed in credit cards, set aside an additional $7.9 billion to cover potentially bad loans. Wells Fargo, which did not set aside as much money as its peers in April, had to play catch up this quarter, setting aside $8.4 billion to cover potentially bad loans.