JPMorgan profit falls 8 per cent fails key regulatory test

JPMorgan Chase said Wednesday that its first-quarter profit fell more than 8 per cent from a year earlier and the bank tried to soothe investor concerns after it failed a key regulatory test designed to prevent another financial crisis.First-quarter profit at JPMorgan, the nation’s largest bank by assets, was hurt by weak results at its investment-banking division and by loans to oil and gas companies that are now struggling to make payments because of low energy prices.As JPMorgan was announcing its quarterly results Wednesday, the Federal Deposit Insurance Corporation and the Federal Reserve announced that it, as well as four other banks, failed to meet a regulatory requirement put in place after the financial crisis. They were required to come up with a plan, known as “living will,” to unwind their operations in the event of a bankruptcy or other upheaval in a way that would avoid triggering another broad financial meltdown.Regulators called the banks’ plans “not credible” and gave them until Oct. 1 to come up with new plans or face more stringent requirements.It was symbolic defeat for JPMorgan and its executives. JPMorgan was one of the few banks to weather the housing downturn and financial crisis and CEO Jamie Dimon has repeatedly touted the firm’s “fortress” balance sheet, which he says would protect it from any future crisis.“We are going to do everything we can to fix this problem,” Dimon said in a conference call with reporters.The regulators’ issues with JPMorgan appear to be tied more into the bank’s legal structure than its balance sheet. JPMorgan’s plan relies on moving money from foreign subsidiaries, which could be difficult in event of a global financial crisis.JP Morgan Chief Financial Officer Marianne Lake told investors she did not expect that the bank’s results would be held back as it addresses regulators’ concerns. And investors did not seem to be concerned. Shares in New York-based JPMorgan & Co. rose $2.51, or 4.2 per cent, to close at $61.79 on Wednesday amid a broad rally in bank stocks.Still, this latest regulatory issue comes at a difficult time for JPMorgan and other big banks. Profits and share prices have fallen in recent months because loans to energy companies have gone bad and the Fed signalled it will slow the pace of interest rate increases, which hurts bank profits. Despite Wednesday’s rally, the financial sector is the worst performing sector of the Standard & Poor’s 500 index this year.JPMorgan said it earned $4.99 billion after payments to preferred shareholders in the first quarter. That compares to a profit of $5.45 billion a year earlier. On a per share basis, the bank earned $1.35, compared with $1.45 a year earlier.The results beat analysts’ expectations of $1.26 per share, according to FactSet. That estimate typically excludes one-time items.The bank had to set aside $719 million in the quarter to cover potential defaults of loans to oil and gas companies and materials and mining companies. JPMorgan, like most of its competition, made billions in loans to drilling companies when oil prices were near $100 a barrel. The price fell to a 12-year low to below $27 a barrel in the first quarter.Net revenue at the bank totalled $23.24 billion, compared with $24.07 billion in the same period a year earlier.The company said profit at its investment bank fell 22 per cent from the year before to $1.98 billion. Profit from its consumer bank rose 12 per cent to $2.49 billion. FILE – In this Jan. 14, 2015, file photo, people walk past a branch of Chase Bank, in New York. JPMorgan Chase & Co. (JPM) on Wednesday, April 13, 2016, reported first-quarter earnings. (AP Photo/Mark Lennihan, File) JPMorgan profit falls 8 per cent, fails key regulatory test by Ken Sweet, The Associated Press Posted Apr 13, 2016 5:01 am MDT Last Updated Apr 13, 2016 at 3:29 pm MDT AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to RedditRedditShare to 電子郵件Email read more

Banker killed with a single punch for talking to a group of

first_imgOliver Dearlove lived with his long-term girlfriendCredit:Chris Greenwood  The victim, who was punched in the head and neck, collapsed in the street and was pronounced dead less than 24 hours later.Asked why he did it, Timon allegedly told one of the women: “I’m p***** off.”Mr Orchard said the defendant had pleaded guilty to manslaughter but denies murder.He said the only issue was whether he intended to cause Mr Dearlove “really serious bodily harm” when he punched him.After the attack, Timon walked away and later tried calling one of the four women, three of whom are sisters.In an attempt to explain what happened, he allegedly told her that one of Mr Dearlove’s party appeared to lean down to their socks.Mr Orchard told jurors to examine CCTV footage which showed Mr Dearlove was not wearing socks and his two friends were in flip-flops. Want the best of The Telegraph direct to your email and WhatsApp? Sign up to our free twice-daily  Front Page newsletter and new  audio briefings. She went on to tell Mr Dearlove that it was her first night out since giving birth, and he commented to his friends: “She had a baby four weeks ago, doesn’t she look well?”The woman produced pictures and Mr Dearlove was “very polite” as he complimented her on having a beautiful baby, jurors heard.Timon, who knew the group of women, allegedly stormed in and demanded to know what they were talking about.He allegedly shouted: “Who the f*** are you boys?” and told Mr Dearlove: “If you don’t move on, I’ll knock you out.”One of the women stood between them and told Timon to “just go”, jurors heard.Mr Orchard said: “The next thing that happened was the defendant hit Oliver Dearlove.”The punch skimmed her face. She saw Oliver Dearlove fall and as he fell his whole body twisted. She screamed ‘He hit him, he hit him’.” Timon, of Heavitree Road, Plumstead, south-east London, is on trial at the Old Bailey accused of murder.Prosecutor Anthony Orchard QC told jurors: “The attack upon Oliver Dearlove took place on a warm August Bank Holiday evening, in the quiet leafy streets of Blackheath.”He stood on the pavement not far from a nightclub. The attack was unprovoked and senseless. It appears to have been motivated by the defendant’s perceived sense of grievance that Oliver Dearlove and two of his male friends were talking to a group of young women, whom Trevor Timon knew.”The victim lived with his long-term girlfriend in New Eltham and worked in the City as a banker, the court heard. Oliver Dearlove’s girlfriend Claire Wheatley attends the trialCredit:Ed Willcox /Central News Oliver Dearlove's girlfriend Claire Wheatley attends the trial It appears to have been motivated by the defendant’s perceived sense of grievance that Oliver Dearlove and two of his male friends were talking to a group of young womenAnthony Orchard QC, prosecutor On Saturday Aug 27 last year, he was on a night out with friends in Blackheath, ending up at Zerodegrees bar and restaurant until just after midnight.Timon was in the nearby Morden’s nightclub along with the women, who cannot be named for legal reasons.The women left the club, followed by Timon, just as Mr Dearlove and his friends emerged from Zerodegrees and set off in the same direction, the court heard.Mr Dearlove had politely asked one of the women if she was hurt after she took off her high heels and began walking slowly along Tranquil Vale.She laughingly replied: “You know what, my feet are killing me”, jurors were told. Trevor Timon A former Coutts banker was killed with a single punch by a man who flew into a rage when the victim talked to a group of young women about high heels and baby pictures, a court has heard.Oliver Dearlove, 30, was friendly and polite as he chatted with the women in the street after a night out in Blackheath, south-east London, on Aug 28 last year, jurors were told.The casual exchange, lasting no more than 20 seconds, prompted Trevor Timon, 31, to fly into a rage and launch his “unprovoked and senseless” attack, the court heard. Oliver Dearlove and girlfriend Trevor Timon is accused of murderCredit:Central News last_img read more