JPMorgan Chase

Futures Jump On Chinese Trade Data; Oil Declines; Global Stocks Turn Green For 2016

With oil losing some of its euphoric oomph overnight, following the API report of a surge in US oil inventories, and a subsequent report that Iran's oil minister would skip the Doha OPEC meeting altogether, the global stock rally needed another catalyst to maintain the levitation. It got that courtesy of the return of USDJPY levitation, which has pushed the pair back above 109, the highest in over a week, as well as a boost in sentiment from the previously reported Chinese trade data where exports rose the most in over a year, however much of the bounce was due to a favorable base effect from last year's decline. Additionally, as RBC reported, the 116.5% y/y increase in China’s reported March imports from HK likely reflects the growing trend of "over-invoicing", which is merely another form of capital outflow.

Goldman Slammed With $5.1 Billion Fine For "Serious Misconduct" In Mortgage Selling

Hot on the heels of Wells Fargo's $1.2 billion settlement, Bloomberg reports that Goldman Sachs will pay $5.1 billion to settle a U.S. probe into its handling of mortgage-backed securities involving allegations that loans weren’t properly vetted before being sold to investors as high-quality bonds. “This resolution holds Goldman Sachs accountable for its serious misconduct in falsely assuring investors that securities it sold were backed by sound mortgages, when it knew that they were full of mortgages that were likely to fail,” said Acting Associate Attorney General Stuart Delery.

Wells Fargo "Admits Deceiving" U.S. Government, Pays Record $1.2 Billion Settlement

Nearly a decade since the housing bubble burst the dirty skeletons still emerge from the closet, and still nobody goes to jail. In the latest example of how criminal Wall Street behavior leads to zero prison time and just more slaps on the wrist, overnight Warren Buffett's favorite bank, Wells Fargo, admitted to "deceiving" the U.S. government into insuring thousands of risky mortgages. Its "punishment" - a $1.2 billion settlement of a U.S. Department of Justice lawsuit, the highest ever levied in a housing-related matter.

Why Janet Yellen Can Never Normalize Interest Rates

Crony capitalists, corrupt politicians, and Deep State hustlers paid good money for Yellen; she’ll do all she can to avoid letting them down. But something isn’t working. Not for her. Not for Bank of Japan governor Haruhiko Kuroda. Not for the president of the European Central Bank, Mario Draghi. Not for People’s Bank of China governor Zhou Xiaochuan. Their tricks no longer work.

Stocks To Reopen In The Green For 2016 After Crude, USDJPY Rebound

In the final day of the week, it has again been a story of currencies and commodities setting stock prices, however instead of yesterday's Yen surge which slammed the USDJPY as low as 107.67 and led to a global tumble in equities, and crude slide, today has been a mirror imoage after a modest FX short squeeze, which sent the Yen pair as high as 109.1, before easing back to the 108.80 range. This, coupled with a 3.5% bounce in WTI, which is back up to $38.54 and up 4.9% on the week as speculation has returned that Russia and OPEC members can reach a production freeze deal on April 17, led to a global stock rebound which will see the S&P open back in the green for 2016.

Was There A Run On The Bank? JPM Caps Some ATM Withdrawals

Under the auspices of "protecting clients from criminal activity," JPMorgan Chase has decided to impose capital controls on . As WSJ reports, following the bank's ATM modification to enable $100-bills to be dispensed with no limit, some customers started pulling out tens of thousands of dollars at a time. This apparent bank run has prompted Jamie Dimon to cap ATM withdrawals at $1,000 per card daily for non-customers. Of course, we are sure this is just another 'storm in a teacup' as why would anyone complain about a bank withholding people's money when they are assuredly tax evaders, terrorists, drug dealers and human traffickers.

Frontrunning: April 4

  • Ties between Germany and Russia enter new chill (Reuters)
  • Tax authorities begin probes into some people named in Panama Papers leak (Reuters)
  • SEC investigates ex-JPMorgan debt traders (FT)
  • Who Will Win Wisconsin? Here Are Six Credible Predictions (BBG)
  • Victim in Wall St. Scheme Was a Classmate of Its Accused Architect (NYT)

Markets Will Eventually Normalize - "Over The Fed's Dead Body"

See how it works? Central banks destroy the real economy with cheap money and extractive policies. Then, as the economy slumps, they need to bring their policies in line with the slumping economy. They need to swear off raising rates back to normal. And since their policies can never produce real prosperity, they can never produce an economy that can support normal interest rates. Normal? Forget it. Eventually, normal will make a comeback. But not because the Fed wants it. Instead, the markets will normalize – brutally ­– over the Fed’s dead body... which is just the way we’d like it.

Frontrunning: March 21

  • Oil Drops With Emerging-Market Currencies on Rig Recovery Signs (BBG)
  • A plea for help - How China asked the Fed for its stock crash play book (Reuters)
  • Obama to meet Raul Castro on historic Cuba trip (Reuters)
  • Wall Street's Pile of Unwanted Treasuries Exposes Market Cracks (BBG)
  • Dimon's Timing Looks Savvier by the Day as Equities Rebound (BBG)

Frontrunning: March 18

  • Dow's Freakish Bounce Makes Investors Whole, Can't Erase Doubts (BBG)
  • R.I.P. Dollar Rally as Dovish Fed Spurs Worst Slump Since 2011 (BBG)
  • Global Currencies Soar, Defying Central Bankers (WSJ)
  • Oil hits 2016 high above $42 on production and demand outlook (Reuters)
  • The U.S. Is Exporting Its Oil Everywhere (BBG)
  • Hillary Clinton’s Allies Launch Plan to Undercut Donald Trump Now (WSJ)

JPM Announces $1.9 Billion Buyback One Month After CEO Jamie Dimon Buys 500,000 Shares In The Open Market

On February 12, Jamie Dimon made headlines when he bought 500,000 shares, or some $26 million worth of JPM stock which coming one day after the market hit its lowest point in the recent selloff, has become known as the "Dimon Bottom." Was it just good timing or was there something more to the purchase some wondered. As it turns out the purchase may have been nothing more than Jamie frontrunning his own company's multi-billion buyback, because as JPM announced moments ago, the company of which he is a CEO, just authorized the repurchase of an additional $1.9 billion in stock over the next three months, thereby assuring CEO Jamie of an even great profits on his recent acquisition.