Wall St. Brief: JPMorgan Faces $22B PENALTY, P&G Mulls CEO DISMISSAL
JPMorgan (NYSE:JPM) will restate its first quarter numbers from its CIO trading losses and cut net income by $459 million. The news came as the bank reported its second quarter earnings. This included a pretax loss from the CIO trades at $4.4 billion, lower than the estimated $9 billion. Second quarter earnings per share dropped to $1.21 from $1.27, while revenue fell to $5 billion from $5.4 billion; both beat estimates.
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The Libor scandal could affect 12 associated global banks and see a combined $22 billion in regulatory penalties and damages to investors and counterparties, estimated Morgan Stanley (NYSE:MS). The figure does not include the possible repercussions from U.S. and EU investigations; this could tag on billions of dollars in fines.
Procter & Gamble’s (NYSE:PG) board is mulling over the dismissal of CEO Robert McDonald as the directors are dissatisfied with his performance, reported Bloomberg. They have started a job search by speaking with former executives about the position. The board’s discussions affected activist investor Bill Ackman’s decision to take a large share in P&G; he reportedly will make calls for management changes.
Vivendi (VIVHY.PK) Chairman Jean-Rene Fourtou confirmed Bloomberg reports that the company may sell its 61 percent Activision (NASDAQ:ATVI) stake even with a lack of potential suitors. Microsoft (NASDAQ:MSFT) and Disney (NYSE:DIS) have shown no interest, while China’s Tencent (TCEHY.PK) and Japan’s Nexon lack enough money for a purchase.
On Tuesday, a Senate panel will share the details of HSBC’s (NYSE:HBC) role in the laundering fund both for or in Cuba, Iran and Mexico as well as additional countries. HSBC execs will testify and this will include legal chief Stuart Levey; he was a former top Treasury official for terrorism and finance.