JPMC Derivatives business may be limited by new financial regulations
JPMorgan Chase & Co agreed to buy some units of RBS Sempra Commodities LLP for $1.7 billion in cash to expand its energy and metals trading business. JPMorgan will acquire the firm's global oil, global metal and European power and gas assets.
After Merrill's $7.9B in write offs on further sub prime problems and Citi's $4B write off at the end of the week all banks traded down on fears of unknown asset quality.
JPMorgan Chase & Co. LauncheD A $1.5 billion debt offering. The 30 year capital securities were launched with 7.2% dividend and were increased from an original $500 million amount. The notes will be fixed for five years then will float at the original issue swap spread rate versus the three-month London interbank offered rate and will be payable quarterly. Final maturity is slated for 2039 and the notes are noncallable for five years. The price per capital security will be $25.
The US Treasury Department demanded that JP Morgan and a series of other large banks cut 85% of the $6.9B of Chrysler's debt. JPMorgan, along with Citigroup, refused and made a counteroffer to lower the debt by 35% in exchange for a 40% minority stake.
JPM spent approximately HK$600 to increase its shares on Chinese Coal, Steel and Aluminum companies. This is one of the first times that JPMorgan has invested in China within the last year.
JPM announced it will report earnings on Thursday 1/15/2009, just before the market opens. The original earnings release was scheduled for 1/21.
Swiss Re, the worlds largest reinsurance group, announced that it had received a $1.5B Letter of Credit from JP Morgan. The Letter replaces past arrangements and provides liquidity and stability during a time of uncertainty.
JPM was downgraded from neutral to underperform by Merrill Lynch. Among the reasons were a projected Q4 loss and a $2.8 billion writedown.
JPMorgan Chase & Co reported net income of $527 for the third quarter of 2008. The net income also included an estimated loss of $640 million associated with the acquisition of Washington Mutual.
JPMorgan Chase announced its second-quarter earnings on Thursday, July 17. Though its net income for the quarter fell 53% to $2.0 billion from $4.2 billion in 2007, analysts were expecting a sharper decline. JPMorgan's CEO did emphasize that deterioration in the housing market would continue to impact the value of the company's mortgage portfolio. Regardless, shares of JPM rose as much as 13% during the trading day.
First talks of a Bail Out for Freddie and Fannie surface
JP Morgan reported its first-quarter earnings for 2008 on Wednesday, April 16. Though profit fell to $2.37 billion from $4.78 billion in the same quarter in 2007, this beat most expectations, sending its stock price higher throughout the day.
In response to outcries from Bear Stearns shareholders, JP Morgan raised its buyout offer to $10 per share from the original price of $2. This move was intended to appease Bear shareholders and ensure that the deal went through unchallenged.
On Sunday, March 16th, JPMorgan Chase announced that it had struck a U.S. Treasury-backed deal to purchase Bear Stearns for $2 per share. This news came after a flurry of market speculation and customer withdrawals nearly eliminated Bear's liquidity and caused its stock price to plunge.
On February 4th, JP Morgan Chase, Citigroup, and Morgan Stanley stated that they would put into effect a set of "Carbon Principles" by which they would give investment priority to clean energy groups, and force any company planning to build coal-powered plants to show how they would deal with the carbon dioxide pollution in order to get investment money.
An analyst at Goldman Sachs lowered his target price for JP Morgan's stock to $46 from $51.
A large stock market sell-off in Shanghai had repercussions around the financial world, including in the