Financial Business Update: Blackstone Concludes Fund, JPMorgan Hit With Penalties
The Blackstone Group (NYSE:BX) concludes its most recent real estate fund, Blackstone Real Estate Partners VII, after it brought $13.3 billion in 13 months. The total brings AUM in the firm’s real estate division to more than $50 billion. Already, the fund has committed or invested 35 percent of its capital.
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A judge has ordered JPMorgan Chase & Co. (NYSE:JPM) to pay around $18 million to a trust after the bank got it into unsuitably risky securities. The court also says that JPMorgan must pay punitive damages, the amount yet to be determined. The judge wrote that “The bank has been guilty of reckless disregard for the rights of others.”
The mortgage-related lawsuits that have been brought against Wells Fargo & Co. (NYSE:WFC) and JPMorgan are tiny compared to the legal and asset write-down exposure facing Bank of America Corporation (NYSE:BAC) and Citigroup (NYSE:C), says Antoine Gara. Fred Cannon at KBW calculates that a worst-case scenario outcome for Wells Fargo would see perhaps 5 cents cut from its forecast fourth quarter profit of 89 cents.
Don’t Miss: Wells Fargo Has Legal Trouble With Uncle Sam.