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U.S. Morning Call: JPM gets harsh Senate report, Fed pass

Thursday, March 14, 2013 - 04:18

JPMorgan ignored risks, misled investors, fought with regulators and tried to work around rules as it dealt with mushrooming losses

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Morning call -- Friday and some of the big US banks getting handed some bittersweet news. The Federal Reserve told Goldman Sachs and JPMorgan Chase they just think some flaws and how they determine capital payouts to shareholders. However the central banks in their plans for share buybacks and dividends. The feds say JPMorgan and Goldman would have to submit plans by the end of the third quarter. Shares of Goldman Sachs fell slightly in after hours trade shares of JPMorgan fine as well they're down over 2% in the premarket. The Fed wasn't -- -- all the banks BB AT and government owned ally financial failed their final stress tests. Shares of BB NT also fell after the close after getting back their test results. On the same day JPMorgan got slammed by a scathing senate report executives -- hearing today. There -- reports saying senior managers were told for months about bad derivatives bets that. That ended up costing the bank more than six point two billion but a little Rain Man. While the report may be harsh it's the past escort from the Fed that counts. There are some intriguing looking -- pretty salacious emails seeking -- emails about bank capital massaging. Salacious but it may be that the one of the guys that was trying to get the banks optimizes he's a cap which sounds -- a lot of banks do it and always great candidates it was a muck it up. And that's what we so with with the whole crisis occasionally screwed up. Royally with with with the world trade cap requirements business looks pretty good particularly picketed by bank was a lot lower six billion them what they had approved last year. Dividend is going up 27% which is is what investors professed -- dividends of abandoned them to buy xmas that's. Stock futures point to it flat open after the Dow hit its tenth straight closing high at 141530. Points. Yes and paying nearly there and at 1563. Take a look at -- economic data out this morning US consumer prices are expected to have written last month for the first time since October. Driven by higher gasoline prices and pick up in the prices. But increase in the course CPI's expected to have slowed it to point 2% from point 3% January. Put -- generally benign inflation environment. The Federal Reserve also release the report on industrial production for February analysts expected to show an improving economy with polls coming in -- point 4%. Compared to January negative point 1%. It's finally here or Samsung premiering its latest flagship phone in the galaxy S war. The new Smartphone sports a bigger display an unconventional features such -- gesture controls like scrolling web browsers with your high. Call the tech titans chose to challenge apple in its home -- too much fanfare. Shares of Samsung down now in South Korean trade while apple shares are up in the premarket. Some stocks to watch this morning and we start -- the cruise line that has a problem with some ships staying in the course. We're talking of course about Carnival Cruise Lines to mortgage ships have mechanical problems. And is happening just the company expects to report first quarter earnings of two cents a share. But Thomson Reuters star -- analysts predicting a downside surprise of almost 6%. Shares this morning trading a bit lower in the premarket. Boeing saying its competent it's grounded 77 dreamliner jets we'll take flight again in a matter of weeks. This week the US Federal Aviation Administration approved Boeing's plans to fix the battery system. Shares hitting highs not seen since may of 2008. Right now up slightly in the premarket. We've also got to see I don't watch today an SEC filing showed Wells Fargo chief John stumps pay increased 8% to 2012. Making it one of the industry's best paid leaders. -- received nineteen point three million dollars in compensation. Including a four million dollar bonus. That's it for your Friday morning caught you can follow us on Twitter at Reuters Insider and get more here at -- -- Last place.

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U.S. Morning Call: JPM gets harsh Senate report, Fed pass

Thursday, March 14, 2013 - 04:18