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Home » Tag: JPM
Wed. May. 13, 2009 D4L commentary

No Such Thing As Free (TARP) Money

Several banks have learned the hard way that when you get the U.S. government’s money, even in the form of a loan, as a bonus you get the government’s “help” running your business.  Needless to say, this is not very appealing to most businesses. Looking at the country’s deficit, the government doesn’t specialize in running anything in the black. So what’s a company to do when they realize they’re in a bad relationship?


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Fri. Mar. 6, 2009 D4L commentary

As Financials Wither, One Titan Stands Strong

Last week we mentioned that JPMorgan (JPM), the second-largest U.S. bank, slashed its dividend by 87% to $0.05. Possibly that wasn’t quite enough to keep keep big brother happy, so JPM took their quarterly dividend down to $0.01/share. The dividend is to be paid on Friday, April 3, 2009 to common stockholders of record as of Friday, March 20, 2009. JPM closed down 8.14% – it is always good to deliver bad news twice.


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Mon. Mar. 2, 2009 D4L commentary

Federal Reserve To Urge Banks to Stop Paying Dividends

Last Wednesday, Bloomberg reported that The Federal Reserve is urging Wells Fargo & Co. (WFC) and dozens of banks getting bailout funds to put the money into new loans, bolster loss reserves and not to pay dividends to shareholders. It seems the message has been heard. JPMorgan (JPM), the second-largest U.S. bank, slashed its dividend by 87% to $0.05. CEO Jamie Dimon said the decision wasn’t “directly related” to the $25 billion it received under the government’s Troubled Asset Relief Program (TARP). Not all companies have the government helping them run their businesses, so they are free to continue raising their dividends. Here are several that have done just that:


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More on this topic (What's this?)
Auerback: Bernanke Fesses Up: America Has No ‘Insolvency’ Issue (naked capitalism, 2/26/10)
Breaking: Darrell Issa Requests Subpoena in AIG/Fed Bailout Cover-Up (naked capitalism, 1/27/10)
Here We Are Again (Financial Armageddon, 3/9/10)
Read more on Federal Reserve at Wikinvest
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Tue. Feb. 17, 2009 D4L commentary

Wells Fargo: Things May Not Be Well at Wells

I thought Bank of America (BAC) was strong enough to survive without cutting its dividend. It was better managed than Citigroup (C) and wasn’t in near the dire straits that C was in when it was forced to cut its dividend. This all changed with the announced acquisition of Merrill Lynch. When a company such as Merrill is sold at a fire sale, there usually is a reason. BAC is now learning why Merrill was so favorably priced – they got what they paid for. Is this same situation playing out with Wells Fargo’s (WFC) acquisition of Wachovia?


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Thu. Nov. 6, 2008 D4L commentary

Investment Winners and Losers in an Obama Administration

The election is over and no matter how you feel about Obama, he will be the next U.S. president. Some economists are projecting total government borrowing in excess of $1.5 trillion in the fiscal year ending next September. Such a sharp increase in new debt could push up interest rates and continue the downward pressure on the stock market. Even in a down market, there are always winners. Let’s take a look at some of the possibilities:


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