CitigroupIn his review of management commentary for the largest U.S. banks during the first half of 2014, Orenbuch highlighted the return of positive operating leverage in Citigroup's Latin American and Asia businesses during the second quarter. Citi expects to continue for the rest of 2013, which is especially important, as 57% of the company's revenue during the second quarter came from outside the United States. This makes Citigroup a unique play among the big four. Citigroup estimated that its Basel III Tier 1 common equity ratio was 10.0% at the end of the second quarter, putting the company in fully compliance with the Federal Reserve's minimum requirement of 7.0% plus an additional 2.5% buffer as a global systemically important financial institution (GSIFI) years ahead of the January 9.5% several years ahead of the January 2019 due date.
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JPMorgan ChaseMost investors are well aware of JPMorgan's elevated headline risk, with seemingly daily leaks by federal authorities of civil and criminal investigations of the company, A the bank faces roughly a dozen federal investigations. The company is facing fines ranging from $500 million to $600 million springing from investigations of the "London Whale" hedge trading debacle, which resulted in pretax losses of at least $6.2 billion during 2012. JPMorgan last month agreed to pay $410 million in penalties and "disgorgement to ratepayers" to settle the Federal Energy Regulatory Commission's charges of energy market manipulation. The fines are adding up, but the company is still quite a money maker, booking a second-quarter profit of $6.5 billion, or $1.60 a share.
Interested in more on JPMorgan Chase? See TheStreet Ratings' report card for this stock. -- Written by Philip van Doorn in Jupiter, Fla. >Contact by Email. Follow @PhilipvanDoorn