Welcome!

News Feed Item

Bank of America and JP Morgan Fuel Optimism for Money Center Banks

The ShinesRooms.com Provides Stock Research on JPMorgan Chase and Bank of America

NEW YORK, NY -- (Marketwire) -- 01/07/13 -- The outlook for money center banks and financial institutes continues to brighten as the global economic forecast improves and companies build upon momentum generated at the end of last year. There could be setbacks along the way but growth in the near- and far-terms looks within reach. It is also becoming clearer that several major money center banks have applied the lessons learned in the last few years. Budgets are trimmer, lending practices more secure, provisions for loan losses fewer and operations more efficient.

Access our free reports on JPMorgan Chase & Co. and Bank of America Corporation Traders can also connect to our Wall Street Trading Floor where our research desk and market pros are standing between 8:50 am to 4:15 pm ET at

http://www.ShinesRooms.com/JPM010713.pdf

http://www.ShinesRooms.com/BAC010713.pdf

While the outlook for companies is bright, regulatory concerns will almost certainly factor into the performances of major global banking operations this year. Bank of America Corp. (NYSE: BAC), for example, has already set aside $6 billion for additional lawsuits according to a report from the Financial Times. That figure may appear foreboding initially but the fact that Bank of America was able to double its value last year while settling for billions in suits suggests any hindrances this year may not pose a major threat to its value. Weeks of negotiations between banks and Federal regulators may soon near an end this week regarding a $10 billion settlement to resolve the potential abuse of foreclosures over the last few years. Banks are on board with the deal and much of the money will go back to homeowners which could further improve the outlook for the housing market.

The housing market will likely play a more important role this year than it did in 2012. The effects of a third round of quantitative easing targeted specifically at the housing market are beginning to come into focus. Specifically, lending activities for a few major institutions have risen sharply over the last little while. At JPMorgan Chase and Co. (NYSE: JPM), third quarter 2012 lending jumped 29% over the prior year's period to reach an impressive $50 billion in home loans. If the housing market continues its recovery on its current trajectory, banks like JP Morgan may see loan activity improve even more along with margins and its bottom-line. It should be noted though that the industry as a whole is not completely on board with a housing market recovery and some continue to shift their focus away from home lending and into areas they deem more stable. There appears to be more evidence in favor of continued recovery than against it however. Joblessness has fallen below 8% and is projected to fall even further portending a potential release of pent up housing demand.

Investors will want to track the results of the coming rounds of bank stress testing. The stakes, in some ways, are even higher for this series of tests. Banks have rebuilt a substantial amount of goodwill with Federal regulators and in turn have positioned themselves to garner even more fiscal freedom with a successful stress test. The general consensus amongst money center banks is that more capital will be returned to investors in the form of dividends, share buybacks or a combination of the two. Some banks will put newly freed capital towards expansion and acquisition activity as well.

Overall, money center banks will still battle headwinds in the coming months but optimism continues to surround the industry. Regulatory concerns and sudden market shifts will be challenging but by no means insurmountable. Sustained improvement from the housing market will be important but not vital to profits. Successful stress tests will be key to investors in the short-term while also encouraging for the remainder of the year. Moderate growth looks well within reach for money center banks at the onset of 2013 but most importantly, they are currently positioned to be far more stable than they were a year ago.

About Shinesrooms.com
Shine's Rooms is the brain child of David Shine, a 13 year Wall Street veteran with a stellar track record. For 13 years Shine has trained thousands of traders to navigate and profit from the markets. Using cutting edge technology, Shine provides you with a community in which you can trade alongside Shine and his Team as they guide you through the market's ever-changing landscape. ShinesRooms.com is the Ultimate Trading Environment for investors. Over the last 5 years our returns outpaced any of the major indexes. Sign up today to find out what you are missing. www.ShinesRooms.com

To view our disclaimer, visit this link http://www.shinesrooms.com/disclaimer.html.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Historically, some banking activities such as trading have been relying heavily on analytics and cutting edge algorithmic tools. The coming of age of powerful data analytics solutions combined with the development of intelligent algorithms have created new opportunities for financial institutions. In his session at 20th Cloud Expo, Sebastien Meunier, Head of Digital for North America at Chappuis Halder & Co., will discuss how these tools can be leveraged to develop a lasting competitive advanta...
MongoDB Atlas leverages VPC peering for AWS, a service that allows multiple VPC networks to interact. This includes VPCs that belong to other AWS account holders. By performing cross account VPC peering, users ensure networks that host and communicate their data are secure. In his session at 20th Cloud Expo, Jay Gordon, a Developer Advocate at MongoDB, will explain how to properly architect your VPC using existing AWS tools and then peer with your MongoDB Atlas cluster. He'll discuss the secur...
Most companies are adopting or evaluating container technology - Docker in particular - to speed up application deployment, drive down cost, ease management and make application delivery more flexible overall. As with most new architectures, this dream takes a lot of work to become a reality. Even when you do get your application componentized enough and packaged properly, there are still challenges for DevOps teams to making the shift to continuous delivery and achieving that reduction in cost ...
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 20th Cloud Expo, which will take place on June 6-8, 2017 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 add...
SYS-CON Events announced today that Cloudistics, an on-premises cloud computing company, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloudistics delivers a complete public cloud experience with composable on-premises infrastructures to medium and large enterprises. Its software-defined technology natively converges network, storage, compute, virtualization, and management into a ...
SYS-CON Events announced today that SD Times | BZ Media has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. BZ Media LLC is a high-tech media company that produces technical conferences and expositions, and publishes a magazine, newsletters and websites in the software development, SharePoint, mobile development and commercial UAV markets.
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
In his session at Cloud Expo, Alan Winters, an entertainment executive/TV producer turned serial entrepreneur, will present a success story of an entrepreneur who has both suffered through and benefited from offshore development across multiple businesses: The smart choice, or how to select the right offshore development partner Warning signs, or how to minimize chances of making the wrong choice Collaboration, or how to establish the most effective work processes Budget control, or how to max...
"I think that everyone recognizes that for IoT to really realize its full potential and value that it is about creating ecosystems and marketplaces and that no single vendor is able to support what is required," explained Esmeralda Swartz, VP, Marketing Enterprise and Cloud at Ericsson, in this SYS-CON.tv interview at @ThingsExpo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Why do your mobile transformations need to happen today? Mobile is the strategy that enterprise transformation centers on to drive customer engagement. In his general session at @ThingsExpo, Roger Woods, Director, Mobile Product & Strategy – Adobe Marketing Cloud, covered key IoT and mobile trends that are forcing mobile transformation, key components of a solid mobile strategy and explored how brands are effectively driving mobile change throughout the enterprise.
After more than five years of DevOps, definitions are evolving, boundaries are expanding, ‘unicorns’ are no longer rare, enterprises are on board, and pundits are moving on. Can we now look at an evolution of DevOps? Should we? Is the foundation of DevOps ‘done’, or is there still too much left to do? What is mature, and what is still missing? What does the next 5 years of DevOps look like? In this Power Panel at DevOps Summit, moderated by DevOps Summit Conference Chair Andi Mann, panelists l...
Virtualization over the past years has become a key strategy for IT to acquire multi-tenancy, increase utilization, develop elasticity and improve security. And virtual machines (VMs) are quickly becoming a main vehicle for developing and deploying applications. The introduction of containers seems to be bringing another and perhaps overlapped solution for achieving the same above-mentioned benefits. Are a container and a virtual machine fundamentally the same or different? And how? Is one techn...
My team embarked on building a data lake for our sales and marketing data to better understand customer journeys. This required building a hybrid data pipeline to connect our cloud CRM with the new Hadoop Data Lake. One challenge is that IT was not in a position to provide support until we proved value and marketing did not have the experience, so we embarked on the journey ourselves within the product marketing team for our line of business within Progress. In his session at @BigDataExpo, Sum...
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service.