Financial Biz Review: HSBC On The CARPET, JPMorgan’s Second Quarter RESULTS
The Co-operative Group is near agreement on the purchase of 630 branches from Lloyds (NYSE:LYG), says the Financial Times. However, the weak environment probably requires that the price will have a maximum of £1 billion, which is well under the previously suggested figure of £1.5 billion. Further, the amount will likely be split into upfront and performance-based payments.
Earnings Report: Bank of New York Mellon Second Quarter Earnings Sneak Peek.
HSBC’s (NYSE:HBC) part in the laundering of funds for or in Iran, Cuba, and Mexico, will be on display Tuesday, as a U.S. Senate panel will hear testimony from the firm’s executives, which will include legal chief Stuart Levey, who was once a major Treasury official on terrorism and finance.
J. P. Morgan’s (NYSE:JPM) pretax loss from the CIO trades has now been set at $4.4 billion, which is obviously quite lower than estimates which went as high as $9 billion. The CIO synthetic group is being shut down. The firm’s earnings report, along with a restatement of The Loss, and a conference call are all slated for Friday. Net revenue fell by 6.8 percent year-to-year, and trading revenue dropped 10 percent, and by 15 percent without the debt valuation adjustment. The second quarter’s pretax profit from reduced loan loss reserves was 2.1 billion, adding 33 cents per share to profits, compared to 28 cents in the first quarter. The deterioration in the bank’s credit spreads enabled the booking of an $800 million DVA profit. JPM’s Basel III Tier 1 capital ratio is 7.9 percent. Net interest income was $11.3 billion, which was down 5 percent year-to-year.
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