Financial Business Review: JPMorgan Still Center Stage, AIG Hurt HPQ
Tuesday’s JPMorgan (NYSE:JPM) news – so far – includes reconfiguring compensation after The Loss, an unfortunately timed shareholders meeting, and the growing list of investigators and pilers-on. Two senior executives say that the company is mulling bonus ‘clawbacks’, after word went out of Ina Drew’s possible receipt of $14.65 million in accelerated equity awards (although she could see her awards cancelled if it’s determined that she “caused material financial or reputational harm”). The shareholders’ meeting adjourned after 50 minutes, failing to pass a resolution which would split the Chairman and CEO roles at the company. 40.1 percent voted for the new arrangement, and several bigwigs added their support as well. Jamie Dimon told the audience that JPM’s after tax loss should be around $1 billion, and that earnings will be as much as $20 billion in 2012; using these figures he argued against reducing the dividend. Finally, the list of investigating agencies now includes the Justice Department, the U.S. Senate, the Securities and Exchanges Commission, the Federal Reserve, and the United Kingdom’s FSA. However, shares are back up quite nicely on Tuesday – might have to do with that dividend.
Analysts at Citigroup are focusing on HSBC’s (NYSE:HBC) huge exposure to emerging markets, and are asking why its shares are not valued accordingly. The exposure comprised $13.8 billion (80 percent) of the 2011 net profit. However, it’s also noted that HSBC’s valuation is similar to those banks’ that do concentrate on developing markets, as does JPMorgan.
Hewlett-Packard Co. (NYSE:HPQ) gets a setback as a United States tax court judge rules against its efforts to get back some $190 million in tax refunds, involving a tax shelter set up in The Netherlands by AIG’s (NYSE:AIG) derivatives arm. In 2009, HPQ had sued the Internal Revenue Service to retrieve the refunds, which are connected with a complex attempt to create capital losses and foreign tax credits which could be used to lower U.S. tax payments.
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