Opening Bell: 07.16.09
JPMorgan Reports Second-Quarter 2009 Net Income of $2.7 Billion (JPM)
"JPM today reported second-quarter 2009 net income of $2.7 billion, an increase of 36% compared with net income of $2.0 billion in the second quarter of 2008. Earnings per share were $0.28, compared with $0.53 in the second quarter of 2008. Current-quarter earnings per share reflected a one-time, non-cash reduction in net income applicable to common stockholders of $1.1 billion, or $0.27 per share, resulting from repayment of TARP preferred capital." Full press release here.
U.S. Regulators to BofA: Obey or Else (WSJ)
Under threat of management being fired, Bank of America has been ordered to do exactly as the government says. This time not by Hank Paulson! BAC was told in April it must, among other things, "overhaul its board and address perceived problems with risk and liquidity management," with deadlines for getting it all done fast approaching, or Ken Lewis is out of a job.
Harvard Law Tells Students: Don't Panic Over Jobs (Bloomberg)
"If you are looking in D.C., consider Baltimore or Richmond...If you're looking in Chicago, try Milwaukee and St. Louis, too...if you're looking in New York, try Long Island...if you're looking in LA try East Compton."
Obama Bill Seeks To Shine Light On Hedge Funds (NYT)
The plan aims to "counteract any incentive for the largest firms gambling with their size," Michael Barr, U.S. Treasury assistant secretary for financial institutions said.
Plan to unveil City high-flyers' pay (FT)
"The pay and bonuses of hundreds of high-flying City traders and dealmakers will have to be publicly disclosed under a Treasury-backed plan to curb excessive and risky remuneration."
Getting Trumped (NYP)
Pretty upsetting news: Donald Trump's attempt to get a judge to take his libel case wherein Hairpiece accused an author who said his net worth was between $150 million and $250 million and not the $5 billion to $6 billion Trump claims was thrown out in court.
Citi Close To Secret Deal With Regulator (FT)
The proposed agreement requires, among other things, that Citi be Citi, but just a better, less fuck-up-y Citi. Ways it could do this: strengthen board and governance, improve asset quality, better manage expenses and provide more information to regulators on its capital and liquidity. Not really sure why this has to be done in "secret," but SheBair and Vikram are known to love speaking in code and pretending they're starring in a Russian spy movie so, whatevs.