This Day On The Street
Continue to site right-arrow
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
TheStreet Open House

JPMorgan: Political Pin Cushion Loser

Stocks in this article: BACJPMI:BKX

NEW YORK ( TheStreet) -- JPMorgan Chase (JPM) 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

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,461.32 -153.49 -0.92%
S&P 500 1,927.11 -14.17 -0.73%
NASDAQ 4,382.8470 -36.6310 -0.83%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs