This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

JPMorgan: Political Pin Cushion Loser

NEW YORK ( TheStreet) -- JPMorgan Chase (JPM - Get Report) was the loser among major U.S. financial names on Wednesday, with shares declining 2% to close at $47.79.

The New York Times early Wednesday reported JPMorgan was being investigated by federal prosecutors over whether or not the company took the proper steps required by law to alert regulators over concerns about Bernard Madoff before Madoff's Ponzi scheme was discovered. The report cited unnamed sources.

Madoff in June 2009 was sentenced to 150 years in prison, after pleading guilty for orchestrating the largest Ponzi scheme in U.S. history.

The report came less than two weeks after current and former officers involved with JPMorgan's now-infamous " London Whale" hedge trading losses of at least $6.2 billion were grilled by the Senate Permanent Subcommittee on Investigations.

In its report about the London Whale matter, the Senate Permanent Subcommittee on investigations, chaired by Senator Carl Levin (D., Mich.), made several recommendations, including the immediate implementation of the Volcker Rule, "to stop high risk proprietary trading activities and the build-up of high risk assets at federally insured banks and their affiliates."

According to the Times, "at least eight federal agencies are investigating the bank."

JPMorgan Chase previously reported in its annual 10-K filing that its expenses for litigation reserves during 2012 totaled $3.7 billion, increasing from $3.2 billion in 2011.

Bank Stocks Pull Back


The broad indices ended mixed, after the National Association of Realtors reported its pending home sales index declined by 0.4% to 104.8% in February, although the index was still 8.4% higher than a year earlier. Economists on average expected pending home sales for February to increase by 1% from January, according to Zacks.

While it may seem strange after so many years of pressure on home prices from a glut of houses for sale, an inventory shortage has developed in many U.S. regions and is limiting sales, according to NAR chief economist Lawrence Yun.

The NAR report followed a report from CoreLogic on Tuesday, saying, shadow inventory -- distressed properties not yet listed for sale -- was declining sharply.

"Only new home construction can genuinely help relieve the inventory shortage, and housing starts need to rise at least 50 percent from current levels," in order to bring inventories to normal levels, Yun said. "Most local home builders are small businesses and simply don't have access to capital on Wall Street," he said, adding that "clearer regulatory rules, applied to construction loans for smaller community banks and credit unions, could bring many small-sized builders back into the market."
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
BAC $16.44 2.37%
JPM $64.48 2.50%
AAPL $112.92 2.94%
FB $89.73 2.91%
GOOG $637.61 1.43%

Markets

Chart of I:DJI
DOW 16,654.77 +369.26 2.27%
S&P 500 1,987.66 +47.15 2.43%
NASDAQ 4,812.7080 +115.1720 2.45%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs