JPM Pays Another $2 Billion Fine While Sirius XM Pops 7%
Jan 7th 2014 6:00AM
Updated Jan 7th 2014 6:02AM
1. JPMorgan Chase pays another billion-dollar fine for Madoff involvement
Tupac is a finance genius, 'cause some things just never change. Six days into 2014 and JPMorgan Chase is amid another huge investigation for dirty banking practices -- this time the involvement in Bernie Madoff's ponzi scheme. Jamie Dimon is opening the bank's wallet again, for $2 billion this time, to cleanse its public image and keep federal Investigators at bay.
Bernie Madoff became the face of Wall Street greed after his fraudulent "investment fund" was revealed to be smoke and mirrors, and nothing more. Scores of investors lost their fortunes they entrusted him to invest (Madoff got sentenced to life in prison plus about a million years). It turns out the sophisticated Ponzi scheme ran through the pipes of JPMorgan Chase Bank, Madoff's bank of choice, for many years. Investigators suspect the bank turned a blind eye.
After $18 billion in fines and settlements in 2013, JPMorgan is about to pay $2 billion more to end investigations of complicity in Madoff's crime. The $20 billion in fines in the past year would be equal to every single dollar spent in Afghanistan in an entire year (the war-torn country's GDP is about $20 billion). JPM stock, though, continues to be unfazed by the bazooka "I'm sorry" payments, as profits continue to churn through the megabank -- and believe it or not, these legal risks are well known in the JPM club.
It sounds like good news ... for shareholders of Sirius XM Radio . That's because Liberty Media is a major media conglomerate that currently owns 53% of America's largest satellite-radio provider but announced over the weekend it wants 100% of Sirius. Sirius stock popped 7.3% Monday on the news. Seriously. Sirius Stock hit No. 1 on Ryan Seacrest's Top 20 list, since there's major demand for the remaining 47% of non-Liberty-owned shares.
3. Factory orders hit historic high
Yank out your Ninja Turtles lunchbox, because the last time factory orders were this high was back in '92, when the data was first tracked. Domestic and growing international demand for U.S.-manufactured products rose 1.8% in November, for its second strong gain in three months.
- Janet Yellen celebrates her Senate approval to be the first chairwoman of the Federal Reserve Bank of the United States.
- U.S. International Trade Report
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The article JPM Pays Another $2 Billion Fine While Sirius XM Pops 7% originally appeared on Fool.com.Fool contributors Jack Kramer and Nick Martell have no position in any stocks mentioned. The Motley Fool owns shares of JPMorgan Chase, Liberty Media, and Sirius XM Radio. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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