Category: Investing News (Page 2 of 259)

JPMorgan and others face millions in fines for new trading violations according to Wall Street on Parade.

The Commodity Futures Trading Commission (CFTC) fined three of the largest trading houses on Wall Street a combined $53 million for derivative reporting violations.

Those trading houses were units of Goldman Sachs, Bank of America, and JPMorgan Chase.

“But what was particularly tone deaf about the CFTC’s settlement with JPMorgan Chase was the tiny amount of the monetary fine and the praise heaped on the five-count felon bank for its “cooperation” with the federal regulator”, says WoP.

According to the CFTC, over a period of five years, spanning 2017 to 2022, JPMorgan Chase Bank and two of its units “failed to report, or failed to correctly report, more than 40 million swap transactions.”

“The fine was a pathetic $15 million in total for the three JPMorgan units, meaning it cost this global behemoth just 37 ½ cents per law violation,” says the journal.

“Last year, JPMorgan Chase reported $37.7 billion in net income. A fine of $15 million for 40 million violations of law is something that traders will make jokes about around the water cooler.“

In September, JPMorgan, Goldman Sachs, UBS and Morgan Stanley agreed to collectively pay $499 million to end a suit, which was filed in 2017 by US pension funds, led by the Iowa Public Employees’ Retirement System.

“The pension funds accuse the banks of trying to corner the market with their own system called EquiLend, while hindering the development of new platforms that would execute the borrowing and lending of electronic securities,” reports DH.

JPMorgan has been heavily scrutinized for its numerous scandals involving customer account halts, login and ATM issues, and most recently its scandal with Jeffrey Epstein.

Other JPMorgan Chase News Today

Chase has now closed the most branches with more scheduled to shutter by the end of the year.

Thousands of banks have shut down in the US last year, but one has stood apart from the pack with the most closures, says The-Sun.

“Banks are closing branches faster than they’re opening new ones.

U.S. banks closed over 3,000 branches last year while opening just 1,000.

JPMorgan Chase led in branch closures last year, shuttering 144 branches, while opening 133.

The trend will likely continue as banks face staunch competition for deposits and younger customers from online banks, fintech firms and Big Tech,” reports Kiplinger.

Between 2017 and 2021, more than 7,000 branches were closed in the U.S., which represents 9% of all locations.

One-third of these closures have been in areas with large minority populations.

“The initial wave of closures was sparked by mergers and acquisitions in the wake of the 2008 financial crisis.

More recently, changing consumer preferences and improved banking tech are the reasons given for ditching brick-and-mortar locations.

It shows that big-bank investment in tech is paying off, as new apps and websites with an expanding array of services have lured more customers.”

Although Chase is leading bank closures, the bank has stated that it plans to open new branches as well.

A spokesperson for the company told The U.S. Sun that the bank has made “significant investments in new branches, adding more than 650 over the last five years, including delivering on our commitment to build 400 branches in 25 new states.”

Below is a list of bank branches Chase will be closing this year.

Also Read: More US Banks Are Now Freezing and Closing Accounts

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A banking giant will now terminate customer accounts amidst today’s painful economy reports DailyHodl.

“London-based lender Barclays says it plans to terminate the accounts of thousands of British citizens who are currently residing outside the United Kingdom.

The bank says it’s contacting expatriates living outside the UK about the coming closure of their savings or current accounts,” says the online magazine.

Barclays says all customers must have an acceptable UK address or else the lender will permanently shutter their accounts.

“Your address must be in one of these countries:

• England
• Scotland
• Wales
• Northern Ireland

We can’t accept a PO Box, c/o or a Barclays branch address.” 

According to the bank’s website, customers may be exempted from the new ruling as long as they meet certain qualifications.

“You’ll only be able to have an address outside the UK and keep your accounts open if:

• You’re a UK Crown employee, or you’re the spouse or civil partner of a UK Crown employee
• The address outside the UK on your account is for someone who manages your account for you (for example, someone who has power of attorney), or for someone who’s set up to receive information on your behalf (for example, an accountant or lawyer)
• You’re outside the UK on a temporary basis for six months or less and will be moving back to the UK.” 

Yahoo! Finance reports that affected customers have six months to find a new bank where they can transfer their funds.

They can also open an International Bank Account which requires them to hold £100,000, worth about $121,000, across their Barclays savings and investment accounts to avoid a £40 ($48) monthly fee, reports DH.

Also Read: A US Bank Is Now Preventing Families From Accessing Money

Other Bank News Today

New warnings of bank collapse have begun to surface due to massive unrealized losses, per the latest FDIC data.

Banks have now reported having more than $309 billion in unrealized losses for the second quarter ending on June 30 alone.

The FDIC reported that all 4,645 FDIC-insured financial institutions had $309.6 billion in unrealized losses on held-to-maturity securities.

According to Bank of America’s federal regulatory filing known as the Call Report, for the quarter ending June 30, 2023, it had $105.79 billion in unrealized losses on its held-to-maturity (HTM) securities, reports Wall Street on Parade.

Bank of America’s unrealized losses represents 34% of all unrealized losses on held-to-maturity securities reported by the 4,645 FDIC-insured commercial banks and savings institutions.

“Not only are Bank of America’s unrealized losses beyond the norm on a percentage basis, but the total dollar amount of its held-to-maturity securities are also far beyond the norm.

In terms of assets, Bank of America is the second largest federally-insured bank in the U.S. with $2.4 trillion in assets. (That’s just the federally-insured commercial bank unit of Bank of America. The bank holding company has $3.1 trillion in assets and includes the giant retail brokerage firm and investment bank, Merrill Lynch.)

JPMorgan Chase is the largest bank in the U.S. with $3.38 trillion in assets at its federally-insured bank (Chase Bank) and $3.87 trillion in assets at its holding company, says WoP.

CPA/CFA Sandy Peters says this extreme amount of unrealized losses is what cause Silicon Valley Bank (SVB) to collapse.

“This is what SVB did. At 12/31/2022, SVB reflected $91.3 billion of HTM financial instruments, 43.1% of its balance sheet, at amortized cost. Their fair value was only $76.2 billion, or $15.1 billion less than their carrying value.”

Also Read: Bank of America is Freezing Accounts in New Scandal

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Also, thank you to all of our blog sponsors. This year we’ve been able to increase push notifications slots making it more convenient than ever for new readers to receive their daily market news and updates.

You can also follow me on Twitter, Instagram, Facebook, or LinkedIn for daily news and updates on your favorite stories.

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