Financial Biz Review: Goldman Sachs North African WOES, JPMorgan Continues CLIMB
Several banks are in the process of redeeming a combined $3.1 billion worth of trust preferred securities, following a ruling by the Fed that the paper can no longer be counted in Tier 1 capital calculations. BB&T Corporation (NYSE:BBT) now joins that number of companies performing the task.
JPMorgan (NYSE:JPM) gets a good news day on Wednesday (so far), even as Jamie Dimon is again In Residence on Capitol Hill. Shares continue their upwards movement that began Tuesday, partially on the word that the recently strong financial markets have enabled JPM to rid itself of between 65 and 70 percent of its cash hemorrhaging London Whale position. In addition, the firm is poised to obtain a windfall from an investment in the London Metal Exchange (which itself was offered an eye-popping acquisition price last week from Hong Kong exchanges), that it grabbed in November from the bankrupt MF Global.
NYSE Euronext (NYSE:NYX) sets its exchange in London in motion, as it goes up against London Stock Exchange in The City, with Groupe Eurotunnel (GRPTF.PK) as its first London listing. A difficulty to surmount, however, is that trading on the London Stock Exchange is barely moving, and the market for IPOs has been down since a very famous one did not go well, about a month ago.
Goldman Sachs (NYSE:GS) and SocGen (SCGLY.PK) could be in for trouble in North Africa, as the Libyan Investment Authority is looking into the possibility that it can “claim a refund” for the $1.75 billion that it lost through structured products that were managed by the two banks.
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