News 

Lower tax rate may cost banks another $20 billion before benefits kick in

“Under the old system, they would have been charged the applicable U.S. tax rate any time they did so” writes James Langford for washingtonexaminer.com. The tax break expected to slash what three of the biggest Wall Street banks have to pay the Internal Revenue Service may cost them more than $20 billion first.Their competitors will eventually benefit, too, keeping cash that can be invested in the companies themselves, employees, and communities.”Deferred tax assets,” or losses from previous years that can be used to reduce payments later, will now have to…

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JPMorgan profit beats on higher interest rates; books tax charge

“JPMorgan Chase & Co, the biggest U.S. bank by assets, reported a higher-than-expected quarterly profit as gains in net interest income offset a slowdown in trading revenue” reports foxbusiness.com. Net interest income rose 11 percent to $13.4 billion on higher interest rates and loan growth.”The enactment of tax reform in the fourth quarter is a significant positive outcome for the country.The bank recorded a $2.4 billion charge to cover a new one-time repatriation tax on income it has kept abroad and to adjust the value of its deferred tax assets…

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Bank execs sing praises of new tax law as windfall looms

“In comparison, JPMorgan paid an effective tax rate of 28.4 percent in 2016 and a tax rate of 31.9 percent in 2017” reports foxbusiness.com. Because the new tax bill lowered the corporate tax rate to 21 percent, the value of those tax-deferred assets had to be written down.JPMorgan Chase took a $2.4 billion charge tied to the tax bill, while Wells Fargo had a $3.35 billion benefit.Outside of the tax bill, JPMorgan’s results were positively impacted by rising interest rates. Source: foxbusiness.com Share This:

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JPMorgan profit beats Wall Street forecasts on higher interest rates

“Rising interest rates, however, helped cushion the blow from lower trading revenue, lifting net interest income by 11 percent, to $13.4 billion” reports nypost.com. JPMorgan Chase, the biggest US bank by assets, reported a higher-than-expected quarterly profit on Friday as gains in net interest income offset a slowdown in trading revenue.Trading revenue across the industry has been under pressure due to low volatility.Equity trading revenue was flat, including the impact of a mark-to-market loss of $143 million on a margin loan to a single client. Source: nypost.com Share This:

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JPMorgan lost $273 million on a single client in the fourth quarter

“After accounting for the $130 million in additional credit losses, JPMorgan booked $273 million in losses related to Steinhoff in the fourth quarter” writes Alex Morrell for businessinsider.com. But in an already wonky quarter, JPMorgan reported an unusual loss not related to the new tax law: Its equities team took a $143 million loss from a single client.Other banks are expected to be impacted by Steinhoff’s accounting loss as well.After accounting for effects from tax reform, JPMorgan posted a solid quarter, announcing earnings of $1.69 share Friday. Source: businessinsider.com Share This:

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JPMorgan’s tax rate slides after $2.4 billion bite at year’s end

“JPMorgan Chase’s tax rate will slide about 10 points this year under a Republican tax overhaul that cost the largest U.S. lender $2.4 billion at the end of 2017” writes James Langford for washingtonexaminer.com. “We’re always comparing it to 2016, which was an extraordinary year,” Lake noted, but even with lower revenue, fixed-income trading still delivered significantly more than the cost of capital, she noted. Source: washingtonexaminer.com Share This:

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JPMorgan beats earnings expectations after accounting for $2.4 billion hit from tax reform

“That includes: $3.7 billion one-time hit for repatriated earnings, an $800 million hit from the revaluation of foreign tax investments, and a $2.1 billion gain on revaluing deferred tax losses” writes Alex Morrell for businessinsider.com. Dimon praised the tax plan: “The enactment of tax reform in the fourth quarter is a significant positive outcome for the country.Indeed, accounting for tax reform and other special items, JPMorgan posted earnings of $1.07 a share.The bank took a $2.4 billion hit from the new tax law, equivalent to $0.69 a share, higher than the $2…

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News Stocks 

Dow’s 500-point jump one for the record books

“The Dow Industrials, Nasdaq Composite, Russell 2000, the Dow Transports, and the S&P 500 all hit all-time intraday highs, while four Dow stocks hit intraday records: Caterpillar (CAT), Boeing (BA), UnitedHealth (UNH) and JPMorgan (JPM)” writes Leia Klingel for foxbusiness.com. It has been just seven trading sessions since the Dow crossed the 25,000-point milestone in the fastest 1,000-point move in history. Source: foxbusiness.com Share This:

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Crypto Futures News 

JPMorgan chief backtracks on Bitcoin ‘fraud’ claim but remains dubious

“Goldman is also exploring other ways to accommodate customer demand for Bitcoin trading” writes James Langford for washingtonexaminer.com. Still, the largest of the companies are all futures commission merchants who connect buyers directly with sellers, and one, Goldman Sachs, has begun clearing Bitcoin futures for some of its clients.”Investors should be aware of the potentially high level of volatility and risk in trading these contracts.”.  Source: washingtonexaminer.com Share This:

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US banks buoy reserves as credit card debt hits $1.02 trillion record

“Sure, a record $1.02 trillion in U.S. credit card debt gives banks the chance to earn higher interest” writes James Langford for washingtonexaminer.com. “There’s only so much credit card debt Americans can absorb without it causing real problems,” Matt Schulz, a senior industry analyst at CreditCards.com, said in a statement.A mix of increased card debt and higher interest rates means that climb will probably accelerate in 2018.Still, total U.S. card debt for November — reported by the Federal Reserve on Monday — increased 13.3 percent and combined with rising interest…

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