Breaking News This Morning
Settlement: As speculated, JPMorgan Chase has reached a settlement with the Securities and Exchange Commission related to Bear Stearns' mortgage backed securities sales practices, Bloomberg reports. Details on the terms of the settlement are scarce, but JPMorgan did say in the filing "the agreement in principle is subject to approval by the SEC, as well as court approval."
Receiving Wide Coverage ...
The Day(s) After the Election: The presidential election continues to dominate the news cycle, with the focus, as predicted, turning to whether Congress and a re-elected President Obama will be able to strike a deal regarding the fiscal cliff. Some signs point to "yes" with Speaker of the House John Boehner announcing at a press conference yesterday that Republicans were "willing to accept new revenues" and "do what's best for our country." But other news outlets — specifically the FT — argue a resolution might not be so imminent since friction remains over whether all the Bush tax cuts should be extended. The paper points to another statement Boehner made at the press conference indicating Republicans may hold firm on their stance the tax cuts should stay in play: "A 'balanced' approach isn't balanced if it means higher tax rates on the small businesses that are key to getting our economy moving again and keeping it moving."
Meanwhile, Dealbook appears a bit obsessed with how Wall Street should approach a second-term Obama administration, with one article suggesting big financial institutions may "pay a price" for pushing so hard for Republican candidate Mitt Romney. Another article, however, argues that Obama's re-election "is unlikely to present a doomsday situation" some financial institutions may expect as lobbyists will now move to clarify or "tame" key parts of Dodd-Frank, instead of pushing for their repeal. Additionally, banks "plan to attack the fiscal cliff and other tax policies, a chief concern among their many corporate clients." The site also has an article outlining what Wall Street should expect from Elizabeth Warren, a topic American Banker readers may already be familiar with.
Wall Street Journal
Morgan Stanley is making an effort to reassure its investments bankers that the recent management shake-up — in which investment banking chief Paul Taubman chose to resign following the promotion of his former co-head Colm Kelleher — won't diminish their role at the financial institution. Chief Executive James Gorman assured employees in a memo that Morgan Stanley would "continue to build on our leadership position in investment banking and capital markets."