Analysis: JPMorgan to be haunted by change in risk model
(Reuters) - JPMorgan Chase & Co's decision to radically change the way risk was measured in its Chief Investment Office is likely to dog the bank in the developing crisis over the big trading losses it has suffered. The move, which allowed the bank to disguise the level of risk that the CIO was taking in its trading, could become a major focal point of investigations by the U.S. Securities and Exchange Commission and the FBI, former regulators said. It also will likely become part of investor cases in lawsuits against the bank and its executives. ...
Analysis: JPMorgan CEO gets crisis marks but war isn’t over
NEW YORK (Reuters) - Shooting from the hip may have got Jamie Dimon into deep trouble -- shooting straight may help to get him out of it. The JPMorgan Chase & Co CEO made the crisis over the bank's trading loss of at least $2 billion far worse because he had assured financial markets back in April that news reports about massive bets the bank's Chief Investment Office had taken were "a tempest in a teapot". It meant that when the bank disclosed the big and probably growing loss on May 10, it not only had to admit a sizable problem, but also that it had been misleading investors. ...
Stock index futures point to modest rebound
U.S. stock index futures pointed to a slightly higher open on Wall Street on Friday, with futures for the S&P 500 and the Dow Jones up 0.2 percent and Nasdaq futures up 0.3 percent at 4:41 a.m. EDT. Japan's Nikkei average dived 3 percent on Friday to log a seventh straight week of losses, its longest such run since the third quarter of 2001, as investors sold stocks and other risky assets on concerns over slowing global growth and a deepening euro zone crisis. Incoming French President Francois Hollande meets with U.S. ...
Gupta trial could feature big corporate stars
NEW YORK (Reuters) - Lloyd Blankfein, Warren Buffett and other well-known chieftains of corporate America might be called to testify at the insider trading trial starting on Monday of former Goldman Sachs Group Inc and Procter & Gamble Co director Rajat Gupta. Blankfein, who runs Goldman, and Buffett, who runs Berkshire Hathaway Inc , are among dozens of people that lawyers for the government and for Gupta said on Thursday might be mentioned or might testify at the trial, which is expected to last about three weeks. ...
JPMorgan’s Dimon says will testify before Congress
WASHINGTON (Reuters) - JPMorgan Chase & Co Chief Executive Jamie Dimon has agreed to testify before Congress over the bank's recent trading losses, which have ignited a political debate over whether large U.S. banks need to be reined in by regulators or new laws. U.S. Senate Banking Committee Chairman Tim Johnson said in a statement on Thursday that his panel will invite Dimon to appear before Congress. ...
Nervous investors send S&P lower for fifth day
NEW YORK (Reuters) - Stocks hit a four-month low on Thursday as rising Spanish bond yields increased investor anxiety over that country's banks and another round of weak data undermined hopes for U.S. economic recovery. Growing worries over developments in the euro zone and lackluster economic data pushed the S&P's losing streak to five consecutive days. The index, which closed at a level not seen since mid-January, has now relinquished more than half of its gains from the first quarter. ...
Nasdaq falls 1 percent
NEW YORK (Reuters) - Stocks fell on Thursday, with the Nasdaq down 1 percent and the S&P on track for a fifth straight day of declines as weak U.S. economic data spooked investors already concerned about the ongoing debt crisis in Europe. The Dow Jones industrial average dropped 68.95 points, or 0.55 percent, to 12,529.60. The Standard & Poor's 500 Index dropped 9.28 points, or 0.70 percent, to 1,315.52. The Nasdaq Composite Index dropped 31.44 points, or 1.09 percent, to 2,842.60. (Reporting By Edward Krudy, editing by Dave Zimmerman)
Tiffany raises dividend 10 percent
(Reuters) - Upscale jeweler Tiffany & Co raised its dividend for the 11th time in 10 years on Thursday. The quarterly dividend will be increased by 10 percent to 32 cents per share from 29 cents. Tiffany will report quarterly earnings next week, with analysts expecting a profit of 69 cents per share on revenues of $816.9 million. A year earlier it earned 67 cents a share. (Reporting By Phil Wahba; editing by Jeffrey Benkoe)
Hobbled Dewey & LeBoeuf loses last top manager
(Reuters) - For Dewey & LeBoeuf, the time may have come for last rights. In recent days, Dewey has laid off hundreds of employees, been hit with new lawsuits for not paying its bills and continued to shed partners, including the last member of its top management team. As late as Wednesday afternoon, however, a spokesman for Dewey insisted the "firm is not formally closed." The defection of Washington, D.C., lobbyist L. ...
Shareholders sue JPMorgan Chase over trading loss
NEW YORK (Reuters) - JPMorgan Chase & Co was the target of two separate lawsuits by shareholders on Wednesday, accusing the bank and its management of excessive risk that led to trading losses of at least $2 billion. A spokesman for JPMorgan Chase declined to comment on the lawsuits, which were filed in U.S. District Court in Manhattan, days after Chief Executive Jamie Dimon's May 10 statement that a "failed hedging strategy" caused the massive loss over the last month. ...
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