Best of the Blogs: Could the JPMorgan Loss Potential Be Over $31 Billion?
By Kathleen Culliton May 22, 2012 11:20 am
Minyanville's daily roundup of some of the best financial commentary from around the Web.
This column highlights the most interesting and useful business and financial commentary from around the Web each day. Use our comments section to post your own suggestions for blog content that you've read or written.
"Earlier today we mocked Jamie Dimon for announcing the cancellation of his firm's stock buyback program, just two shorts months after March 13, when none other than JPMorgan (JPM) forced the Fed to scramble and release the full stress test ahead of schedule, after Jamie Dimon decided to frontrun the full FRBNY stress test release (whose sole purpose was to determine under what worst case scenario the Fed was ok with allowing JPM and various other Bank Holding Companies to proceed with dividend raises/stock buybacks) and announce just that - a dividend increase and a stock buyback. Well, in addition to some well justified egg in Dimon's face, today's results actually have some far more troubling implications." (For related content, see JPMorgan Chase-ened.)
"In an Apple Inc. (AAPL) research report released by Goldman Sachs Group, Inc. (GS) on Sunday titled, "US carrier subsidy and upgrade policies" it reviews the stock's recent under performance and factors affecting it. As noted by the report, since Apple Inc. reported its earnings in the March quarter, its stock price has dropped by 13 percent; this compares to the S&P 500′s (SPY) seven percent drop during the same time." (Also Read Apple Still Very Much Worth Buying, Says David Einhorn.)
"For the first time in recent memory, millions of regular people were paying attention to the moment-to-moment fluctuations of a single stock. Most of us had no idea what was really going on - not working in finance, we rarely do - but it didn't seem like Facebook's (FB) IPO was going very well. The stock had almost instantly dropped four points from its opening price, and bottomed out at the offering price: $38." (Also Read The Great Facebook Fizzle.)
All Things D
"At long last, Google (GOOG) has completed its $12.5 billion cash purchase of Motorola Mobility (MMI), eight months after the deal was announced. The acquisition had been held up by government approval processes, the last of which came from China over the weekend. As expected, Motorola CEO Sanjay Jha is stepping down and Dennis Woodside, who oversaw the acquisition on Google's side, will replace him. Woodside was formerly Google's president of the Americas region and before that built Google's businesses in the Middle East, Africa, Eastern Europe and Russia."
Financial Times: FT Alphaville
"One reserve currency to rule them all. But does it need to be this way? Or is it indeed possible to have two, or even several such currencies? Or to get straight to the heart of it: can the euro or Chinese yuan ever have the status of the US dollar? FT Alphaville has previously traced the historical travels of the US dollar on its road to reserve currency stardom, and discussed some of the things we would expect to see before other currencies could share the podium."
No positions in stocks mentioned.
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