JPMorgan, pension funds settle investor loss case for $150M

20 Jan 2016 | Author: | No comments yet »

DeWine announces settlement with JPMorgan Chase.

COLUMBUS, Ohio (AP) — JPMorgan Chase has agreed to pay $150 million to public pension funds and individuals hurt by its $6 billion “London Whale” trading loss. Han Solo’s line in the new “Star Wars” film could also apply to Walt Disney Co. and the team of filmmakers, marketers and distribution executives who delivered a record-breaking weekend debut, setting the stage for years of movies, merchandise and attractions tied to the most successful science-fiction franchise in history. “Star Wars: The Force Awakens” collected $238 million in U.S. and Canadian ticket sales, topping the $208.8 million hauled in by Universal Studios’ “Jurassic World” in June, market researcher Rentrak Corp. said in a statement Sunday.NEW YORK: US regulators fined JPMorgan Chase $307 million Friday for failing to disclose conflict of interests to clients when it recommended proprietary investment products over third-party options.

JPMorgan Chase will pay more than $US300 million ($422 million) to settle allegations it didn’t inform clients properly about numerous conflicts of interest in how it managed customers’ money over a half decade.COLUMBUS, Ohio (WDTN) – The Ohio Attorney General Mike DeWine announced Monday a $150 million class action settlement with JPMorgan Chase & Co. over a 2012 trading scandal.

The largest US bank by assets didn’t tell customers it reaped profit by putting their money into mutual funds and hedge funds that generated fees for the company, the SEC said in announcing $US267 million in penalties and disgorgement against JPMorgan. Under the terms of the settlement, JPMorgan will pay $267 million to the S.E.C. and an additional $40 million to the Commodity Futures Trading Commission. It comes in a 2012 class-action lawsuit that alleged JPMorgan Chase issued false and misleading statements regarding its trading activity, describing risky and speculative trading strategies as mere “hedges” or “risk management” devices. Since acquiring creator Lucasfilm for $4 billion in 2012, Burbank, California-based Disney has expanded the “Star Wars” merchandise lines, produced new TV shows and mapped plans for themed lands at parks in California and Florida.

The studio has as many as five more “Star Wars” films in the works. “Disney has rebooted the ‘Star Wars’ franchise,” said Robert Marich, author of “Marketing to Moviegoers.” “The reviews from critics and fans were excellent. JPMorgan has been penalised more than $US23 billion in settlements with US authorities in recent years, in connection with allegations that included conspiring to manipulate foreign currency rates, allowing the “London Whale” trader to exceed risk limits, failing to flag transactions related to Bernard Madoff’s Ponzi scheme and misrepresenting the value of mortgage-backed securities. Beginning in 2007, JPMorgan developed basic investment portfolios through a program called the Chase Strategic Portfolio that automatically invested a large portion of any money in proprietary JPMorgan mutual funds. According to The Wall Street Journal, a number of banks are concerned about employees leaking sensitive data to hackers or leaving traces online that make it easier for hackers to penetrate into databases. JPMorgan admitted disclosure failures from 2008 to 2013 related to two units that manage money – its securities subsidiary and its nationally chartered bank.

The Attorney General says the trading losses incurred by JPMorgan Chase caused the bank’s stock value to plummet resulting in a billion dollars of investor losses. You couldn’t ask for anything else.” “The Force Awakens,” which started showing in international markets on Wednesday, brought in an added $279 million overseas, lifting the worldwide total to $517 million as of Sunday, Disney said. The programs reportedly funneled money into the bank’s own hedge funds and into hedge funds whose managers were willing to pay placement fees to JPMorgan. JPMorgan has enhanced its disclosures over the last two years in an effort at “full transparency in client communications,” bank spokesman Darin Oduyoye told AFP. Stocks of Citigroup Inc. (NYSE:C) shows active performance, plunged -3.08% to trade at $51.21as Citigroup Inc. (C) aims to eradicate at least 2,000 jobs commencing coming month, the Bloomberg has reported quoting an unidentified person who briefed on the plans.

The AG says In the next few weeks, all class members will be notified of their status in the class by a claims administrator appointed by the court, and will receive additional information about filing a claim. The report added that substantial portion of the job cuts will be in middle or back-office positions as Chief Executive Officer Michael Corbat restructures some of the bank’s businesses. The settlement caps about two years of investigations, during which the government deposed asset-management executives and issued subpoenas for internal documents.

The report additional noted that the reductions are part of a repositioning the firm reported this month and will occur across the New York-based lender’s global footprint. Shares of Astrazeneca PLC (NYSE:AZN) has price volatility of 1.29% in last 5 days trading session, while shares of firm closed at $32.80 Dropping -1.68% in last session.

The $US307 million in fines and disgorgement accounts for a little more than 1 per cent of the company’s annual operating profit, or about a month of those at its asset-management division. AstraZeneca (AZN) reported that Committee for Medicinal Products for Human Use or CHMP of the European Medicines Agency has adopted a positive opinion recommending the marketing authorisation of lesinurad 200mg tablets. The settlement, announced on the Friday before Christmas, didn’t go far enough, Dennis Kelleher, a lawyer who runs consumer advocacy group Better Markets, said. “The conduct involves steering clients into proprietary products so brokers get higher commissions and JPMorgan gets good asset-management numbers,” said Kelleher, who said the practices remained costly for customers, additional disclosures notwithstanding. “This wasn’t a rogue trader. Lesinurad, in combination with a xanthine oxidase inhibitor, is recommended for the adjunctive treatment of hyperuricaemia in adult gout patients, with or without tophi, who have not achieved target serum uric acid levels with an adequate dose of a XOI alone. It’s a five-year pattern.” The SEC’s inquiries looked into JPMorgan Asset Management, a unit that grew rapidly after the 2008 financial crisis, as new regulations crimped areas including hedge-fund and proprietary trading operations that have traditionally been lucrative for Wall Street firms.

If you are reading this article on another website, that means this article was illegally copied and re-published to this website in violation of U.S. and International copyright law. However, with the change in Federal Reserve’s decade-long interest rate policy, banks are in a better position to generate higher income, and bear the costs of improved cyber security. You can view the original version of this story at http://www.storminvestor.com/jpmorgan-chase-agrees-to-307m-settlement-with-s-e-c-nysejpm/195936/ Get Analysts’ Upgrades and Downgrades Daily – Enter your email address below to receive a concise daily summary of analysts’ upgrades, downgrades and new coverage with MarketBeat.com’s FREE daily email newsletter.

Brian explained: “We spend a lot of money; we’re difficult with our employees in terms of what their behavior is to make sure they help keep us clean.” Similarly, Wells Fargo & Co. (NYSE:WFC) CEO John Stumpf recently tapped the significance of pitching sufficient funds to prevent further dents to cyber security. It also had the highest percentage growth in asset inflows of any large manager in the five years through 2014, ending the year with $US1.7 trillion under management, a February presentation to investors said. Amazon.com, Inc. (NASDAQ:AMZN) is set to put into action aggressive investment plans for its cloud division’s expansion in 2016, which might elevate its capital expenditures and hurt margins. Although it accounted for 8% of total revenues last quarter, Amazon Web Services (AWS) generated 52% of total operating profits for the e-commerce giant in the same period. Alphabet Inc (GOOG) recently acquired cloud company Beebop and appointed VMware co-founder Diane Greene as head of its cloud division, which should spark heat in cloud competition.

Also, cloud competition has shifted up the stack beyond hardware into software, and the larger profit pools on the software side indicate that cloud players can price aggressively at even higher incremental margins. As per this analysis, Pacific Crest believes that AWS will be the product best positioned to capitalize on the shift from client/server storage to cloud. Another analysis of the time period taken by tech giants to surpass $10 billion in cloud revenues, shows that AWS is poised to attain the milestone in just 10 years (2006 to 2016). The upward trend indicates that in the long-term, AWS can derive even higher growth by expanding into new regions and will remain a lucrative opportunity for investors. Though the capital expenditures will exert pressure on the margins, the expansion will in fact lay down path for sustainable higher future revenues, particularly from the high growth emerging Indian market.

Mobileye NV (NYSE:MBLY) stock jumped 2.5% during early trading hours today, after Citigroup Research advised investors to take long position on the stock, ahead of the upcoming Consumer Electronics Show (CES). Michaeli highlights that driverless technology has emerged as the “most powerful megatrend in auto history,” which has resulted in rising competition in the industry.

The analyst believes that Tesla would be the first automaker to purchase Mobileye’s next-generation processor, which comes out in calendar year 2018 (CY18).

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