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JPMorgan is forming a new VC coverage group in its commercial bank and hired four exes away from Silicon Valley Bank to lead it

“JPMorgan is looking to up its game in the startup space with a new VC-focused relationship management team led by Silicon Valley Bank alumni” writes Shannen Balogh for businessinsider.com. According to JPMorgan’s 2018 Letter to Shareholders, 39% of the bank’s total North American investment banking fees came from commercial banking clients, which accounted for $2.5 billion in revenue.Meanwhile, Bank of America and Goldman Sachs have also been putting a focus on smaller deals to help juice investment banking revenue. The commercial banking division at JPMorgan reported third-quarter profit that was…

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Top tech banker Noah Wintroub is at the center of WeWork’s failed IPO. We talked to insiders to learn more about his meteoric rise at JPMorgan.

“He’s in this world where JPMorgan has historically come from behind,” a former JPMorgan banker said” writes Dakin Campbell for businessinsider.com. On June 13, the senior JPMorgan banker Noah Wintroub posted a message on his Twitter feed congratulating the freelancing app Fiverr on its successful JPMorgan-led public offering.In January, the Financial Times quoted the JPMorgan banker as saying you could get attracted to Neumann’s vision thanks to a charisma that was as magnetic as he has seen. Source: businessinsider.com

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SoftBank could have just walked away from WeWork and its $9 billion investment. Business experts explain why it didn’t.

“But rescuing WeWork was likely going to become increasingly difficult the closer it got to running out of cash, business experts said” writes Troy Wolverton for businessinsider.com. It’s not irrational to think that WeWork still has value, business experts said.And if WeWork had gone into bankruptcy, SoftBank potentially could have bought it back at a fraction of what it ended up paying.But in a statement SoftBank issued on Tuesday announcing the bail-out deal, it emphasized WeWork’s promise as a business. Source: businessinsider.com

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WeWork considers rescue plans from SoftBank and JPMorgan

“SoftBank is also offering to put together loans totaling $5 billion from a consortium of financial institutions, including itself” writes This Story Was for seattletimes.com. One is being offered by SoftBank, and another from a financial consortium led by JPMorgan Chase.The board of WeWork, the cash-starved purveyor of shared office space, could choose between two competing financial rescue packages as early as Tuesday, according to people with knowledge of the matter.Once one of the world’s most celebrated startups, WeWork was valued by SoftBank at $47 billion in January but had…

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Exclusive: WeWork owner creates committee to decide on financing lifeline – sources

“SoftBank has proposed up to a $5 billion investment in WeWork two of the sources said” writes Midwest Communications Inc for 95kqds.com. The office-space sharing company is establishing the committee in an effort to ring-fence its financing deliberations from SoftBank’s influence, the sources said.The committee will only have two members – both We Company board directors with the task of representing the interests of all investors in the company, the sources said. Source: 95kqds.com

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JP Morgan Chase shares surge after posting record revenue above Wall Street expectations

“J.P. Morgan Chase posted profit and revenue that exceeded analysts’ expectations on the strength of consumer banking operations that helped the bank mitigate the impact of lower interest rates” writes Hugh Son for cnbc.com. Revenue also rose 8% to $30.1 billion, exceeding the $28.5 billion estimate, and the bank cited growth in home loans, auto and credit cards.Equities trading posted $1.52 billion in revenue, just under the $1.58 estimate.The bank exceeded Dimon’s guidance on the strength of its bond trading desks: The bank posted $3.56 billion in fixed income trading…

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JPMorgan has a complex relationship with WeWork. Here’s a sneak peak at what Wall Street analysts will be asking when it reports earnings.

“Those analysts did estimate a $264 million WeWork writedown in Goldman’s investing and lending business, which houses the firm’s own bets, saying Goldman typically takes “event-driven” write-ups or write-downs” writes Shannen Balogh for businessinsider.com. Earnings season for big banks kicks off next week, and JPMorgan is due to report on Tuesday.Both banks have lent to WeWork CEO Adam Neuman Analysts will have their eyes on any potential credit-related issues tied to lending to WeWork and Neumann. Source: businessinsider.com

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News Stocks 

UPDATE: JPMorgan, Stifel rate SmileDirectClub a buy just days after short seller slams company

“The analysts assigned the stock a price target of $31 that is more than double its current price of $14.72” writes Ciara Linnane for marketwatch.com. Shares rose 2.9% premarket and are up 6% on the month, but remain 36% below their IPO issue price.On Friday, short seller Hindenburg Research said it estimates that the stock has about 85% downside in a damning note outlining practices that are illegal and endanger patients. Source: marketwatch.com

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News Regulators 

Jerome Powell held calls with the CEOs of JPMorgan and Citigroup the day after the Fed cut rates for the first time since 2008

“Federal Reserve Chairman Jerome Powell held phone calls with top Wall Street executives at the start of August, a day after the central bank cut interest rates for the first time since the global financial crisis” writes Finanzen Net Gmbh for businessinsider.com. Dimon, Corbat, and Moynihan separately spoke with Trump after a key recession signal flashed in mid-August for the first time since before the financial crisis . Source: businessinsider.com

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