Welcome!

News Feed Item

The Zacks Analyst Blog Highlights: JPMorgan Chase, UBS, HSBC Holdings, Bank of America and General Motors

CHICAGO, Jan. 9, 2014 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the  JPMorgan Chase & Co. (NYSE:JPM-Free Report), UBS AG (NYSE:UBS-Free Report), HSBC Holdings Plc (NYSE:HSBC-Free Report), Bank of America Corp. (NYSE:BAC-Free Report) and General Motors Company (NYSE:GM-Free Report).

(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Wednesday's Analyst Blog:

Madoff Suit Costs JPMorgan $2.6B

In a further resolution of its legal issues, JPMorgan Chase & Co. (NYSE:JPM-Free Report) agreed to pay nearly $2.6 billion to settle several charges pertaining to lapses in reporting suspicious activities at Bernard L. Madoff Investment Securities LLC (BLMIS). Following this announcement, the company's share price fell during intra-day trading due to negative investors' sentiments. The company's share price closed at $58.32 on Jan 7, down 1.2% from the previous day.

Madoff had accounts with JPMorgan more than two decades before being arrested in 2008 for running a Ponzi scheme that duped investors of billions of dollars. The penalty of $2.6 billion is related to the bank's settlement with various governmental regulators as well as other private parties to resolve civil litigation related to BLMIS.

As part of the settlement, JPMorgan entered in to a Deferred Prosecution Agreement (DPA) with the U.S. Attorney's Office for the Southern District of New York, under which the U.S. Attorney will defer any prosecution of JPMorgan for a two-year period. Hence, the company agreed to pay $1.7 billion to the government as a non-tax-deductible payment.

Additionally, under the terms of DPA, JPMorgan admitted the allegations leveled against it, namely its failure to maintain a proper anti-money laundering program. Further, the company violated the Bank Secrecy Act as it did not file a suspicious activity report (SAR) in the U.S. in Oct 2008 with respect to BLMIS.

Further, the Financial Crimes Enforcement Network slapped JPMorgan with a penalty of $461 million for not detecting and reporting suspicious transactions related to BLMIS. However, this amount is not required to be paid as the company is already making similar payments to the U.S. government.

Moreover, JPMorgan will pay $350 million as Civil Money Penalty to the Office of the Comptroller of the Currency (OCC) in connection with various Bank Secrecy Act/Anti-Money Laundering deficiencies.

Separately, JPMorgan will pay $325 million to the trustee appointed by the court for BLMIS. This will absolve the company of all claims that could crop up from transfers received directly or indirectly from BLMIS. Also, the company will make payments of $218 million to the class action plaintiffs for exchange for a release of all damages claims related to BLMIS. Both these settlement amounts (subject to court approvals) will be distributed to BLMIS fraud victims.

Though significantly reserved to meet the financial terms of the settlement, JPMorgan will likely be adding $400 million (pre-tax) of litigation reserve when it announces the fourth quarter results on Jan 14. Notably, the settlement will lower the company's fourth-quarter net income by $850 million as the settlement amount is non-tax-deductible.

Notably, JPMorgan had set aside nearly $9 billion to cover legal costs in the third quarter. This had led the company to report a rare loss 17 cents per share in the said quarter.

Despite having settled the Madoff case, we believe that JPMorgan's run-in with regulators and other investigation agencies will likely continue in the near term. The company continues to face roughly eight government probes. Hence, higher litigation costs continue to weigh on the company's performance, going forward.

With the announcement of this settlement, the Madoff trustee will be recovering more than $10 billion or 59% of the total amount lost, for victims. However, the trustee is still pursuing claims worth roughly $3.5 billion from UBS AG (NYSE:UBS-Free Report), HSBC Holdings Plc (NYSE:HSBC-Free Report) and UniCredit SpA, all of which have been accused of benefiting from the Madoff fraud.

Currently, JPMorgan carries a Zacks Rank #3 (Hold). A better-ranked finance stock worth considering is Bank of America Corp. (NYSE:BAC-Free Report) with a Zacks Rank #2 (Buy).

GM Reports Record Sales in China

General Motors Company (NYSE:GM-Free Report) and its joint ventures witnessed an 11.4% year-over-year increase in sales in China to 3,160,377 units in 2013. The record high sales were driven by high demand for all the major brands of the automaker.

China is the largest market of General Motors. Although the demand for commercial vehicles in the nation declined in 2013, the diverse product portfolio of the company helped sustain strong growth.

The healthy sales can be attributed to record high domestic sales of 1,512,000 vehicles by Shanghai GM, up 13.6%. SAIC-GM-Wuling also achieved record high sales of 1,584,920 units in China, reflecting a 9.7% year over year increase. Meanwhile, the domestic sales of FAW-GM improved 6.3% to 59,092 vehicles.

Sales of General Motors' Buick brand surged 5.7% to 809,918 units in China. The record high sales were driven by high demand for the original Excelle family as well as Excelle XT and GT.

Chevrolet also witnessed all-time high sales of 652,077 vehicles, up 8.5% year over year. The Cruze, Sail and Malibu models of the brand generated strong sales.

Meanwhile, a 24% increase in the sales of the SRX led to historical high China sales for General Motors' Cadillac brand. Sales surged 66.6% to 50,005 units during the year. Apart from SRX, XTS also generated strong sales for the brand.

Meanwhile, Wuling and Baojun also had record high sales of 1,484,422 and 100,498 units, respectively, during the year.

Total exports to other emerging markets amounted to 83,145 units, up 7.7% over 2012. As a result, total sales of Shanghai GM, SAIC-GM-Wuling and FAW-GM amounted to 1,575,167 units, 1,603,580 units and 60,410 units, respectively.

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros.  In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.

Get the full Report on JPM - FREE

Get the full Report on UBS - FREE

Get the full Report on HSBC - FREE

Get the full Report on BAC - FREE

Get the full Report on GM - FREE

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact

Zacks Investment Research
800-767-3771 ext. 9339
[email protected]
http://www.zacks.com

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

SOURCE Zacks Investment Research, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities – ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups. As a result, many firms employ new business models that place enormous impor...
SYS-CON Events announced today that TidalScale will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale is the leading provider of Software-Defined Servers that bring flexibility to modern data centers by right-sizing servers on the fly to fit any data set or workload. TidalScale’s award-winning inverse hypervisor technology combines multiple commodity servers (including their ass...
As popularity of the smart home is growing and continues to go mainstream, technological factors play a greater role. The IoT protocol houses the interoperability battery consumption, security, and configuration of a smart home device, and it can be difficult for companies to choose the right kind for their product. For both DIY and professionally installed smart homes, developers need to consider each of these elements for their product to be successful in the market and current smart homes.
SYS-CON Events announced today that MIRAI Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MIRAI Inc. are IT consultants from the public sector whose mission is to solve social issues by technology and innovation and to create a meaningful future for people.
In his general session at 21st Cloud Expo, Greg Dumas, Calligo’s Vice President and G.M. of US operations, will go over the new Global Data Protection Regulation and how Calligo can help business stay compliant in digitally globalized world. Greg Dumas is Calligo's Vice President and G.M. of US operations. Calligo is an established service provider that provides an innovative platform for trusted cloud solutions. Calligo’s customers are typically most concerned about GDPR compliance, applicatio...
Companies are harnessing data in ways we once associated with science fiction. Analysts have access to a plethora of visualization and reporting tools, but considering the vast amount of data businesses collect and limitations of CPUs, end users are forced to design their structures and systems with limitations. Until now. As the cloud toolkit to analyze data has evolved, GPUs have stepped in to massively parallel SQL, visualization and machine learning.
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, will lead you through the exciting evolution of the cloud. He'll look at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering ...
As hybrid cloud becomes the de-facto standard mode of operation for most enterprises, new challenges arise on how to efficiently and economically share data across environments. In his session at 21st Cloud Expo, Dr. Allon Cohen, VP of Product at Elastifile, will explore new techniques and best practices that help enterprise IT benefit from the advantages of hybrid cloud environments by enabling data availability for both legacy enterprise and cloud-native mission critical applications. By rev...
SYS-CON Events announced today that Dasher Technologies will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Dasher Technologies, Inc. ® is a premier IT solution provider that delivers expert technical resources along with trusted account executives to architect and deliver complete IT solutions and services to help our clients execute their goals, plans and objectives. Since 1999, we'v...
SYS-CON Events announced today that NetApp has been named “Bronze Sponsor” of SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. NetApp is the data authority for hybrid cloud. NetApp provides a full range of hybrid cloud data services that simplify management of applications and data across cloud and on-premises environments to accelerate digital transformation. Together with their partners, NetApp emp...
SYS-CON Events announced today that TidalScale, a leading provider of systems and services, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale has been involved in shaping the computing landscape. They've designed, developed and deployed some of the most important and successful systems and services in the history of the computing industry - internet, Ethernet, operating s...
Join IBM November 1 at 21st Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Cognitive analysis impacts today’s systems with unparalleled ability that were previously available only to manned, back-end operations. Thanks to cloud processing, IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Imagine a robot vacuum that becomes your personal assistant tha...
SYS-CON Events announced today that Massive Networks, that helps your business operate seamlessly with fast, reliable, and secure internet and network solutions, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. As a premier telecommunications provider, Massive Networks is headquartered out of Louisville, Colorado. With years of experience under their belt, their team of...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
Infoblox delivers Actionable Network Intelligence to enterprise, government, and service provider customers around the world. They are the industry leader in DNS, DHCP, and IP address management, the category known as DDI. We empower thousands of organizations to control and secure their networks from the core-enabling them to increase efficiency and visibility, improve customer service, and meet compliance requirements.