Market Minute: JPMorgan Facing Multiple Federal Investigations

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JPMorgan facing multiple federal investigations
Mark Lennihan/APIn this May 11, 2012 file photo, people stand in the lobby of JPMorgan Chase headquarters in New York.
JPMorgan is making enemies in Washington, and it's time for the Woodstock event for investors.

The major averages regained all of the ground lost in Wednesday's slide. The Dow Industrials jumped 130 points yesterday, the S&P 500 gained 14 and the Nasdaq rallied 41.

At least eight federal agencies are reportedly investigating JPMorgan Chase (JPM) over a broad variety of possible misdeeds. The New York Times says one agency may take action against the banking giant over the way it collected credit card debt and its possible failure to alert authorities to suspicions about Bernie Madoff.

LinkedIn's (LNKD) profit soared, but its stock is set to tumble because of a disappointing revenue forecast for the current quarter. Shares of the social networking site for professionals have been on a tear, up 76 percent so far this year.

AIG's (AIG) operating net blew past Street expectations. Its property-casualty insurance business did especially well, helped by fewer natural disasters compared to a year ago.

Berkshire Hathaway (BRK-A, BRK-B) is out with earnings today. The results come ahead of the weekend long shareholder meeting at the company's headquarters in Omaha, offering them a chance to mingle with Warren Buffett.

And Weight Watchers (WTW) posted slimmer earnings, down 11 percent from a year ago -– but that still topped expectations.

Verizon (VZ) is threatening to withhold the dividend paid by Verizon Wireless. That's seen as a move to pressure joint venture partner Vodafone (VOD) to sell its 45 percent stake to Verizon.

The brokerage firm Jefferies has raised its price target for the retailer Gap (GPS). An analyst there says the company's under-the-radar Athleta unit is worth as much as $10 a share. He says the chain is well positioned to take on Lululemon (LULU).

Indian officials claim that Boeing (BA) has agreed to compensate Air India for losses incurred by the four-month grounding of the 787 Dreamliner. The officials say details still need to be worked out.

-Produced by Drew Trachtenberg

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garryangel

It's all "political" window dressing. The Big Banks are in bed with Washington. they will have a "show" investigation with tons of bluster and absolutely nothing will be accomplished. Meanwhile the community banks suffer because they lack the capital to lend to small businesses, as well as consumers. Who in their right mind would hold capital in a "savings" account paying 0.25$ interest? Did I forget to mention that banks like JPM get to borrow fed funds at 0.25% and buy Treasuries yielding around 2% ? Pretty slick, huh?

As far as Madoff was concerned there were plenty of "wistleblowers" but the SEC never found anything or just failed to follow up. Makes you wonsder about that one also.

May 03 2013 at 12:46 PM Report abuse rate up rate down Reply
T Rock

No mention that JP Morgan also handles the accounts for child support and food stamp programs -HMMM

May 03 2013 at 12:27 PM Report abuse rate up rate down Reply