08 August 2013

SP 500 and NDX Futures Daily Charts - JPM the New 'Bad Boy' of Wall St

Stocks played the complacency trade today and bounced a bit within the narrow ascending range that has marked their price action since mid-July.

The storied "America's Bank," JP Morgan Chase, with its fortress balance sheet, was a weak player today as more news emerged about investigations and lawsuits for their dealing in various markets. And this despite reporting a 'perfect' trading record for the first half of this year. Is this what happens when good boys go bad?
"JPMorgan reported it is under investigation by the Justice Department in six separate areas; being pursued by multiple state attorneys general; Congress; at least five federal agencies; regulators around the world including the European Commission, the UK’s Financial Conduct Authority, the Canadian Competition Bureau, and the Swiss Competition Commission.

In addition, in a trial in Italy, two of its employees were “found guilty of aggravated fraud with sanctions of prison sentences, fines and a ban from dealing with Italian public bodies for one year.” In the same matter, JPMorgan was fined €1 million and ordered to forfeit profit from the transaction of €24.7 million."
Read the entire article by Pam Martens here.

One can only wonder.