Just as JPMorgan Chase & Co. (JPM) and the U.S. Justice Department seemed ready to ink their record-setting $13 billion settlement, the deal hit a new snag. At issue now is whether or not JPMorgan Chase is liable for the mistakes made by failed mortgage lender Washington Mutual, the company which JPM bought during the financial crisis. The New York-based bank is looking to have criminal inquiries into Mutual’s dealings shut down, so it’s not liable for more damages down the road. While this is a stumbling block, negotiations for the settlement are still ongoing. Something else that’s still ongoing is the drain on JPMorgan Chase’s coffers as this wrangling with Justice continues. Third quarter earnings for JPM reflect a loss of $0.4 billion, leaving Chase investors longing for the warmth of a settlement.
The U.S. market continued its steady rise as the Dow Jones jumped 1.38% and the S&P 500 rose 0.98%. Global markets have had a surprisingly poor run over the past two weeks, with the MCSI Emerging Markets Index down 1.19%.
Your Alpha Investor Letter portfolio also had a strong week. Big gainers included Icahn Enterprises, L.P. (IEP), which soared another 8.00% last week. Google Inc. (GOOG) also rose 2.90% and Visa Inc. (V) added 2.13%. The Market Vectors Biotec
Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:
Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.
Hilary Kramer is an investment analyst and portfolio manager with 30 years of experience on Wall Street. Since 2010, Hilary's financial publications have provided stock analysis and investment advice to her subscribers: