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shalab

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Moody’s Lowers Ratings of Four U.S. Banks After Review

 

http://www.bloomberg.com/news/2013-11-14/moody-s-cuts-goldman-sachs-morgan-stanley-jpmorgan-bny-mellon.html

 

Moody’s Investors Service cut its ratings on four of the biggest U.S. banks after deciding the government would be less likely to help them repay creditors in a crisis.

 

 

We believe that U.S. bank regulators have made substantive progress in establishing a credible framework to resolve a large, failing bank,” Robert Young, a managing director at Moody’s, said in a statement. “Rather than relying on public funds to bail out one of these institutions, we expect that bank holding company creditors will be bailed-in and thereby shoulder much of the burden to help recapitalize a failing bank.”

 

what...? no more govt bailouts?

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It's the NY Times with its usual schtik. (what the editors wanted to write was “JPMorgan Should Have Paid Much More")

 

 

http://investor.shareholder.com/jpmorganchase/presentations.cfm

 

Mortgage-Related Settlements Announcement

 

 

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4Q

 

 

http://files.shareholder.com/downloads/ONE/2895510391x0x718321/7d9e1736-0947-4248-b016-cde02b4de287/4Q13_EPR_FINAL.pdf

 

 

JPMORGAN CHASE REPORTS FOURTH-QUARTER 2013 NET INCOME OF

$5.3 BILLION, OR $1.30 PER SHARE, ON REVENUE1 OF $24.1 BILLION

 

14% RETURN ON TANGIBLE COMMON EQUITY1

 

FULL-YEAR 2013 NET INCOME OF $17.9 BILLION, OR $4.35 PER SHARE, ON REVENUE1 OF $99.8 BILLION

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Fareastwarriors,

 

I have been working my way through the transcripts.  Where is the 13 b settlement?

 

Exercised some 2014 leaps today.  This is a good long term hold.

 

I like the warrants at these prices, I think the assumptions in the price make them a bit better than the common.

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Fareastwarriors,

 

I have been working my way through the transcripts.  Where is the 13 b settlement?

 

Exercised some 2014 leaps today.  This is a good long term hold.

 

Any reason you didn't roll your leaps forward?  That way you have exposure to JPM and cash at hand. 

 

Why do you like JPM?

 

1) a) avoid the taxman

B) JPM in two years could just as easily be trading at $59.00. 

 

2) JPM - small position - basically well run - healthy balance sheet - dividend should rise 15-20 % per year from here. 

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JPMorgan Chase is planning more job cuts in its mortgage business on top of the 13,000-15,000 positions already due to be slashed because of plunging demand for home loans.

 

Several thousand more cuts are planned, according to people familiar with the matter, and could be announced at JPMorgan's annual investor day on Tuesday.

 

 

http://www.cnbc.com/id/101442047

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He brings up a good point about rotce and how paying out dividends.

Citigroup will earn 9 percent this year based on earnings estimates of 5 bucks a share this year but if they pay out 1 dollar annually in dividends as they are estimated next year in dividends that would gain them roughly 100 basis points.

Earnings estimates next year are 5.80 or about 9.7 percent but when you factor in Dividends next year that rises as another 100 basis points plus stock buybacks below tbv could get it to 11 percent rotce for 2015.

I think corbat is lowballing the street next year regarding 10 percent rotce.

The same with bac claiming late 2016 to get to 14 percent rotce.

 

My math isn't exact but the point is Moynihan and corbat are lowballing assuming of course we stay at GDP of 2.5.

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