JPMorgan Chase & Co.
“Wake up pal- if you are not inside, you are outside.”
The words of Gordon Gekko brought Charlie Sheen to a shocking revelation in the 1987 film Wall Street. As Sheen and some of Wall Street’s headline names have found out, insider trading is still very illegal. While I wouldn’t recommend trading on insider information, there is still a way investors can profit.
In his book One Up more »
The Justice Department sued Bank of America (NYSE: BAC) this week, alleging that the big bank defrauded investors by understating the risks of the mortgages backing about $850 million in securities. The lawsuit is another legal woe for Bank of America related to mortgage securities losses and litigation since the financial crisis.
The DoJ’s Case Against Bank of America
While most of the prior cases against the big bank more »
And not just for a visit. Big banks like Citigroup (NYSE: C) barged into investors' proverbial house and put their feet up on the coffee table.
Source: Google Finance
The financial sector performance (represented by XLF) is running circles around the S&P 500 (represented by SPY) in 2013 and will likely continue to do so.
But the comeback's been a long-time in the making. Since the financial crisis more »
It’s old news: interest rates remain low due to the Fed’s bond buying. It’s time for a different story. Bernanke suggested in May and again in July that the Fed may back down on its economic interference. The rumor mill currently cycles a variety of estimated dates: next fall, next winter, next year.
However, when it happens seems to be irrelevant to some investors who already behave more »
It’s been almost five years since Lehman Brothers, then the nation’s fourth biggest investment bank, filed for bankruptcy. Most investors know all too well what happened next: a financial crisis unlike any other since the Great Depression that brought the global financial system to its knees.
Since then, the U.S. economy and financial system have steadily healed. Many of the nation’s financial institutions are lending again more »
For an opposing take on Microsoft and Google, see the post "Tech: The Good, the Bad, and the Ugly"
As spring turns to summer, the temperature begins to rise. This year, the climbing temperatures have mirrored a rise in stock prices since the cool winter months. January to June, the market rose 17%. Since then, it appears that the stock market may be temporarily cooling off. The Fed’s talks more »
One of the natural by-products of the 2008 financial collapse was a reassessment of how we regulate our biggest banks. To me, the LIBOR scandal perfectly summarized the biggest problem that we face when confronting the issue of financial regulation. Yes, I know it happened across the pond and therefore falls outside the purview of American regulators, but Bank of America (NYSE: BAC), JP Morgan Chase (NYSE: JPM), and Citibank more »
Warren Buffett never changes his strategy and is right more often than not. As net worth returns to pre-recession levels, it’s important for investors, (especially ones who lost a ton of money), to ask the question: Did Buffett’s buy and hold strategy help him beat the market? Let’s take a look at a few sectors to see if his strategy still works.
If you more »
The government’s strict regulation of banks provides both a blessing and a curse. On the plus side, regulation helps prevent corrupt practices that undercut honest banks and take advantage of customers. On the other hand, such regulation dramatically increase banks’ expenses. Increased expenses harm banks through decreased profits, and more regulation harms customers when prices increase.
Here are two ways that regulation is shaking up the banking sector.
1 more »
Citigroup (NYSE: C) is a large financial services company offering services like corporate banking, investment banking, retail brokerage and cash management to clients across the globe.
The stock has gone through a lot of turbulence over the last year, finally managing to end on a high note, up 40% for 2012. The company has performed decently in the past quarter. However, there are apprehensions in the market regarding the future more »
Banks are notoriously difficult to value. They are so different from non-financial companies that many investors decide to ignore the industry altogether. However, doing so may keep investors from seeing some of the better opportunities the market has to offer.
Instead of building a complex earnings model using the reams of data provided in a bank's 10-Ks, long-term investors can get away with using a handy shortcut. Since the more »
Over the past month, all 10 sectors on the S&P 500 have ridden the wave of a rising market higher. But with a 6.7% gain, the financial sector has been one of the best performers as a group. For Bank of America (NYSE: BAC) specifically, investors have toughed out a 360-degree turnaround of the stock.
After shooting up 145% from its low of $4.99 on Dec. 19 more »
The road to recovery is long treacherous for banks. But since the banking industry was turned upside down in 2008, the firms have so far been largely successful in recovering. It took some time, but judging by banks’ latest quarterly earnings, investors are finally seeing results of the various recovery strategies.
Some banks in particular are using a simple strategy that is often overlooked by struggling companies (and the US more »
One of the great turnaround stories that's still taking shape is Citigroup (NYSE: C). With all the talk surrounding the mixed results of the housing market and the auto industry in full-fledged rebound mode, much of the spotlight has been taken off the financials. I plan to re-aim this spotlight.
The 2013 MLB All-Star Game was held on July 16, 2013. For a few days culminating in one epic night, the best players in the league came together to compete. While having an All-Star track record doesn't translate directly into future success, the more notorious players have many advantages that help increase its occurrence.
Just as in baseball, some of the biggest players in the banking industry have consistently more »
U.S. Federal Regulators continue to hit the money center banks with steep fines and penalties and investors should take note. The latest news concerns settlements between the money center banks and an array of federal regulators and agencies.
FHFA Settles with UBS
When you study banks' business operations – the dollars they have under management, etc. - the zeros just keep coming to the point where they are mind boggling. But does that necessarily mean large banks have the heft to handle any challenges they might encounter? Are they a good choice for investors?
One of the most disappointing things to see is manipulation, cheapness, unfairness, and above all fraud on Wall Street. The recent energy scandal reminds me of Enron and how it bought out a Californian power company, and caused fake shortages in energy that caused prices to spike. Having control over prices and investing with that foreknowledge is the ultimate form of manipulation.
Two banks caught red handed
So I’m more »
Insider Monkey tracks quarterly 13F filings from hundreds of hedge funds, including Moore Global, the hedge fund founded and managed by billionaire Louis Bacon. The primary purpose of our database is to help us research investment strategies (for example, we have found that the most popular small cap stocks among hedge funds outperform the S&P 500 by 18 percentage points per year), but we can also look back a more »
Financial stocks have been fantastic bets throughout the recovery, but some look to have more room to run than others.
The Financial SPDR ETF (NYSEMKT: XLF) is up 23% year-to-date. Over the course of the past year, it has outperformed the broader market by a whopping 16 percentage points. Even though the financials have been one of the hottest sectors of the first half of 2013, there is still value more »
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