Breaking News This Morning ...
JPM Earnings: JPMorgan Chase kicked off earnings season today by announcing a 33% rise in net income in the first quarter. The bank reported a profit $6.53 billion, or $1.59 a share, besting analyst expectations of about $5.4 billion in net income. Per the Journal, "strong investment-banking results offset declining mortgage revenue." Per some live-tweeting, JPM CEO Jamie Dimon dodged questions regarding the shareholder proposal to break up his role as CEO and chairman during the earnings call. "You guys can ask me this question 15 times. This is an earnings call." American Banker's Maria Aspan reported in a tweet. "JPM's Dimon really doesn't want to talk chairman/CEO split proposal." More big picture coverage: Financial Times, Washington Post, New York Times, American Banker
Wells Fargo Earnings: Wells Fargo also bested analyst expectations of its earnings, reporting a 22% rise in first-quarter profit to a record $5.17 billion, or 92 cents a share. Profits rose largely by focusing on "reducing expenses as demand for corporate and consumer loans sputtered," Bloomberg reports. More coverage: Washington Post, New York Times, Wall Street Journal
Receiving Wide Coverage ...
European Banking Update: Cyprus is moving to loosen restrictions in an effort to "restore normalcy in its banking sector," the Journal reports. But the country has a long way to go on the road to recovery. A new assessment from its European creditors finds "Cyprus will fall into a downward spiral for at least the next two years, with the economy contracting up to 12.5% during the period," writes the Times. Meanwhile, over in other parts of Europe, several key officials are campaigning for stricter stress tests and pushing for "an aggressive cleanup of toxic assets" within the eurozone in an effort to "kick-start its flailing economies," the Journal reports.
Consultants Under Fire: Lawmakers came down on regulators yesterday during a Senate Banking committee hearing on the botched foreclosure review. Senate Democrats, including Jack Reed and Sherrod Brown, also pointed out the problems inherent in regulatory agencies' requiring banks to hire independent consultants to complete the process. During the hearing, the OCC's Daniel Stipano, in prepared remarks, requested Congress move to expand the agency's authority to take enforcement actions against these independent consulting firms. Anyone else sensing a pattern here? New York Times, Washington Post, Bloomberg, American Banker
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