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JP Morgan
Alibaba will meet with investors next week as it considers issuing its first US bond sale.
The Chinese e-commerce giant has hired Morgan Stanley, Citigroup, Deutsche Bank and JP Morgan to manage the sale.
Alibaba would offer dollar-denominated notes to institutional investors, the company said in a statement.
Alibaba considers issuing first US bond sale
Reports suggest that Alibaba would sell $8 billion in bonds after its record public listing just two months ago.
News of Alibaba’s bond sale comes after it made $9 billion in sales on Singles’ Day in China this week, which is considered the world’s biggest online sales day.
In September, the company’s initial public offering in New York was the biggest in the world, raising $25 billion and its stock is up nearly 70% since then.
Alibaba will hold meetings next week in Boston, New York, Hong Kong, London and Singapore.
Moody’s has given the proposed bond an A1 credit rating.
JP Morgan has agreed to pay $4.5 billion to investors who lost money on mortgage-related securities during the financial crisis.
The settlement is with 21 major institutional investors.
Mortgage-related investments were a major factor in the crisis, which began in 2007 with the collapse of the US housing market.
Last month JP Morgan agreed a separate, preliminary $13 billion deal with the US government over mortgage securities.
As part of that deal $5.1 billion would go to settle charges that the bank misled mortgage giants Fannie Mae and Freddie Mac during the housing boom. That settlement was the biggest ever by a US bank.
JP Morgan has agreed to pay $4.5 billion to investors who lost money on mortgage-related securities during the financial crisis
Now, 21 institutional investors that put money into more than 300 residential mortgage-backed securities are to be reimbursed by the bank.
The securities in question were issued between 2005 and 2008 by JP Morgan and Bear Stearns – a bank which it took over during the financial crisis.
“This settlement is another important step in JP Morgan’s efforts to resolve legacy related… matters” stemming from mortgage-related securities, JP Morgan spokeswoman Jennifer Zuccarelli said in a statement on Friday.
Friday’s deal still has to be accepted by trustees for the trusts that hold the securities.
A final settlement with the US Justice Department is expected to be announced soon.
Mortgage-backed securities were sophisticated financial products created by many investment banks in the run-up to the financial crisis.
These special bonds contained a mix of investments but at their heart were supposed to be risk-free home loans.
When the housing bubble burst, the value of these assets fell sharply and the credit markets seized up. The balance sheets of many US and European banks, including those in the UK, became toxic and they had to be bailed out by their governments.
What JP Morgan is alleged to have done was sell the mortgage-backed assets knowing full well that many of the home loans were in fact very risky.
JP Morgan is set for a record $13 billion fine to settle investigations into its mortgage-backed securities, US media reports say.
A tentative deal is believed to have been reached in talks with senior US justice department officials.
The sale of overvalued mortgage-backed securities was blamed for the near-collapse of the banking system in 2007.
JP Morgan is set for a record $13 billion fine to settle investigations into its mortgage-backed securities
Last month, JP Morgan was fined almost $1 billion in a separate case over the “London Whale” trading debacle.
The scandal arose from disastrous trades by former bank employee Bruno Iksil, who made big bets on the financial markets.
The tentative deal to pay the $13 billion fine to the justice department was reached during the talks on Friday, between JP Morgan lawyers with US Attorney General Eric Holder and his deputy Tony West, the Wall Street Journal said, citing officials familiar with the decision.
The New York Times also reported that the investment bank was nearing the agreement, although final details are still being discussed.
Neither the justice department nor the bank was available for comment.
If confirmed, it would be the biggest settlement of its kind ever paid by an American company.
The $13 billion sum is said to include $9 billion in fines and a further $4 billion in relief for struggling homeowners.
In the run-up to the financial crisis, sophisticated financial products known as mortgage-backed securities were created by many investment banks.
What JP Morgan is alleged to have done was sell the mortgage-backed assets knowing full well that many of the home loans were in fact very risky.
The mortgage-backed assets are widely thought to have played a central role in the near collapse of the banking system when banks realized in 2007 that many of their assets were worth a fraction of their official book value.
The fine would settle all potential civil action that might be taken against the bank in future but does not mean that criminal cases against individuals are ruled out.
JP Morgan had initially aimed to persuade US justice department officials to drop the criminal investigation but the attorney general ruled that out, reports said.
In August, US government officials filed two lawsuits against Bank of America relating to mortgage-backed securities. Bank of America denied civil fraud in failing to disclose risks and misleading investors.
JP Morgan has found itself overwhelmed by mounting legal troubles lately.
Once the darling of Washington and Wall Street, it reported a rare quarterly earnings loss last week, mostly due to legal costs totalling $9.2 billion.
The bank lost $380 million during the quarter, compared with a profit of $5.7 billion in the same period last year.
JP Morgan says it has set aside a fund of $23 billion to deal with mounting legal costs.
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JP Morgan will pay $100 million to settle with the US Commodities Futures Trading Commission over losses stemming from its “London Whale” trading debacle in 2012.
In a first, JP Morgan will admit that its traders acted “recklessly”.
The CFTC says the trades, which ultimately cost the bank $6 billion in losses, distorted prices in the market.
Last month, the bank agreed to pay $920 million to other regulators in the US and the UK over the bad trades.
JP Morgan will pay $100 million to settle with the US Commodities Futures Trading Commission over losses stemming from its “London Whale” trading debacle in 2012
The scandal arose from disastrous trades by former bank employee Bruno Iksil, who earned the nickname of the “London Whale” for his big bets on the financial markets.
David Meister, the head of enforcement at the CFTC, said in a statement that the traders tried “to <<defend>> their position by dumping a gargantuan, record-setting volume of swaps virtually all at once, recklessly ignoring the obvious dangers to legitimate pricing forces”.
The bank has found itself overwhelmed by mounting legal troubles lately.
Once the darling of Washington and Wall Street, it reported a rare quarterly earnings loss last week, mostly due to legal costs totaling $9.2 billion.
The bank lost $380 million during the quarter, compared with a profit of $5.7 billion in the same period last year.
JP Morgan says it has set aside a fund of $23 billion to deal with mounting legal costs relating not just to the “London Whale” trading debacle, but also to charges that the bank misled consumers and investors during the housing market collapse.
US media has estimated that JP Morgan could be negotiating a settlement of several billion dollars with a variety of US regulators.
An announcement of this settlement – surely the largest banking fine in US history – is expected to be announced soon.
JP Morgan’s energy unit has agreed to pay $410 million to settle charges from The Federal Energy Regulatory Commission (FERC), the top US energy regulator, that it manipulated energy markets.
FERC agency alleged JPMorgan’s trading practices drove up prices for electricity, mainly in California and the Midwest.
JP Morgan’s energy unit has agreed to pay $410 million to settle charges from The Federal Energy Regulatory Commission
The fine is the second largest penalty in FERC history.
The bank did not admit any wrongdoing as part of the settlement.
JPMorgan spokesman Brian Marchiony said the settlement would “not have a material impact on our earnings” because the bank had previously set aside reserves for the case.
Under the deal, the bank must also make annual reports to the commission for three years detailing its power business in the United States.
JPMorgan has already sold the rights to buy the gas and sell the power from its California plants.
David Gray, a very successful JP Morgan investment banker has thrown away his career by stalking his beautiful colleague Daniela Rausnitz.
David Gray, 28, is almost certain to be fired from his prestigious position at JP Morgan after a passionate affair became an uncontrolled obsession.
The young and wealthy American analyst was yesterday convicted of harassing Daniela Rausnitz, 25, after she transferred to the global finance giant’s London offices to escape him.
David Gray, a very successful JP Morgan investment banker has thrown away his career by stalking his beautiful colleague Daniela Rausnitz
David Gray deluged Daniela Rausnitz with hundreds of texts, emails and phone calls as he repeatedly flew across the Atlantic to pursue her when their one-year relationship turned sour.
He used his old key to get into her Chelsea flat, falsely said his sister had died and even claimed he was critically ill in a desperate effort to attract her attention.
Daniela Rausnitz told police David Gray planted a tracking device in her phone and hacked her email, leaving her afraid that his campaign would never end.
When officers confronted David Gray at a Park Lane Hotel where daniela Rausnitz was hiding with her family he told them he was an agent for the Israeli secret service.
Even on the eve of his trial David Gray was accused of breaching his bail by turning up at the same Notting Hill restaurant as his former lover.
David Gray deluged Daniela Rausnitz with hundreds of texts, emails and phone calls as he repeatedly flew across the Atlantic to pursue her when their one-year relationship turned sour
West London Magistrates’ Court heard the couple met while working in adjacent cubicles at JP Morgan’s investment banking division in New York. David Gray, a graduate of Ivy League Cornell University, had been working for the firm since 2004.
Daniela Rausnitz worked as an unpaid intern before completing her studies at Duke University, ranked as one of the best in the world, where she set up a high-profile organization dedicated to supporting women in business.
When she returned as an employee she began an affair with David Gray, despite the fact he was married. In a strange twist, their relationship was cemented after she confided that she was being sexually harassed by a senior banker at the firm.
The court heard they were at one point “very much in love with each other” as David Gray considered leaving his wife.
But his behaviour became stifling and when Daniela Rausnitz transferred to London to further her career and put distance between them, he followed her.
The tipping point came in August as David Gray flew to London four times and subjected his victim to a relentless barrage of visits and messages.
David Gray was extremely jealous after discovering she had a new boyfriend during one visit and caught them together at her Chelsea flat.
At one stage David Gray sent Daniela Rausnitz 176 text messages and 23 emails over just 16 hours. He even used his key to enter her Onslow Gardens home and take two candlesticks that belonged to his grandmother.
Daniela Rausnitz accused him of trying to change his flights so they were on the same aircraft, putting a tracking device in her bag and breaking in to her email account.
David Gray collapsed in front of her at Heathrow Airport –something she accused him of faking and which he said was brought on by stress.
And in a bizarre confrontation at the Intercontinental Hotel in Park Lane, David Gray was arrested after telling police he was an Israeli secret service agent.
Carrying two bottles of whisky and Cuban cigars, David Gray said he travelled to the hotel to apologize to Daniela Rausnitz and her father.
David Gray told a police officer that he had received tapes of conversations recorded by a hidden bug under the bed at her home and urgently needed to speak to her.
Speaking in his defense, David Gray admitted the story was a complete lie which he concocted in a desperate attempt to evade arrest.
David Gray also admitted claiming falsely that his sister had died and that he was seriously ill in a Paris hospital after an accident. He described himself as a “broken man”.
David Gray’ solicitor Dan O’Callaghan described him as a “pathetic lovelorn fool” who was sent “mixed signals” by the victim.
Daniela Rausnitz wept in court as she described how David Gray’s actions left her scared, unable to sleep and forced her to take a leave of absence from work.
In a statement, Daniela Rausnitz said: “His erratic and obsessive behaviour began to frighten me and I was hopeful that moving to London would put an end to it. Unfortunately it escalated.
“His unwarranted, unprovoked and unrelenting actions have caused me extreme distress.”
Sentencing David Gray to a conditional discharge at West London Magistrates’ Court, District Judge Andrew Sweet said Gray could face a serious penalty if the harassment continues.
The judge said David Gray will be arrested if he contacts Daniela Rausnitz by any means and then visits Britain.
The court has no powers to stop David Gray contacting his victim from America but can arrest him if he returns having done so. David Gray is free to come to Britain if he does not contact Daniela Rausnitz before or during the visit.
JP Morgan declined to comment.
