Us bank – Alg A http://alg-a.com/ Wed, 11 May 2022 11:46:07 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://alg-a.com/wp-content/uploads/2021/10/icon-6-120x120.png Us bank – Alg A http://alg-a.com/ 32 32 US Bancorp: Community partnerships and US Bank Focus Card provide access to affordable banking services https://alg-a.com/us-bancorp-community-partnerships-and-us-bank-focus-card-provide-access-to-affordable-banking-services/ Wed, 20 Apr 2022 05:55:09 +0000 https://alg-a.com/us-bancorp-community-partnerships-and-us-bank-focus-card-provide-access-to-affordable-banking-services/ In California and beyond, US Bank and its community partners are helping hundreds and thousands of underbanked people gain affordable access to banking services. For people struggling to make ends meet, every dollar counts. And when it comes to banking, problems with overdrafts or insufficient funds fees leave many people unbanked. In California and beyond, […]]]>

In California and beyond, US Bank and its community partners are helping hundreds and thousands of underbanked people gain affordable access to banking services.

For people struggling to make ends meet, every dollar counts. And when it comes to banking, problems with overdrafts or insufficient funds fees leave many people unbanked.

In California and beyond, US Bank and community partners like Oakland, Calif., Community Financial Resources are helping hundreds and thousands of underbanked people gain affordable access to banking services through US Bank Focus Card – a reloadable prepaid card that provides consumers with quick access and a secure, cost-effective way to get paid, transact, monitor spending and save.

“We are focused on providing a pathway to financial well-being for low-income communities, and where it starts is safe and reliable banking,” said Parisa Esmaili, Executive Director of Community Financial Resources.

Community Financial Resources makes the cards available through its partnerships with more than 100 nonprofit organizations focused on the financial well-being of low-income households, including voluntary income tax assistance programs. revenue to provide direct deposit of tax refunds and foster youth programs where teens need access to banking without depository signatures. The organization also works with many employers to ensure employees have a safe and reliable way to get paid.

Last year alone, Community Financial Resources distributed nearly 4,000 Focus cards across the country, with an estimated nearly 50,000 cards in circulation since establishing a relationship with US Bank in 2011. Additionally, more than $35 million was deposited into the Focus card in 2021, with some 220 people using their free linked savings accounts to save more than $485,000.

The card has been a key part of several Guaranteed Income pilot projects, including a program with Santa Clara County in California and national nonprofit MyPath, which provided $1,000 a month to 72 aging youth in a host family. The Focus Card was also used for the first Mayor-led Guaranteed Income Program which provided $500 to 125 low-income residents in Stockton, California.

“What we saw was a use beyond guaranteed income. This allowed these people to file their tax returns, receive government incentives through direct deposit, and receive their child tax credits,” said explained Esmaili.

Peter Klukken, managing director of US Bank’s prepaid division, oversees the Focus Card program. Focus Card relationships support non-profit organizations such as Community Financial Resources, as well as employers in various industries who use the Focus Card to support employee payroll.

“Because the U.S. Bank Focus Card provides a fast, secure, and easy way to get paid, transact, track expenses, and save, working with organizations like Community Financial Resources helps open doors to affordable and secure banking services for those who need it most,” says Klukken.

The Focus card is connected to the award-winning US Bank mobile app, making banking, budgeting and saving even easier. According to 2019 data from Community Financial Resources, approximately 57% of Focus cards distributed through the organization were used to receive salary and 43% were used to receive direct deposit of tax refunds. In a 2018 usage study, holders of CFR-issued Focus cards saved about $350,000 in emergency funds.

To learn more about community financial resources, visit www.communityfinancialresources.org. To learn more about the US Bank Focus card, visit US Bank Focus Card Site.

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Circle soon seeks US banking charter to bolster stablecoin business https://alg-a.com/circle-soon-seeks-us-banking-charter-to-bolster-stablecoin-business/ Fri, 15 Apr 2022 21:07:33 +0000 https://alg-a.com/circle-soon-seeks-us-banking-charter-to-bolster-stablecoin-business/ The Stablecoin Circle issuer is in talks with US regulators to become the fourth crypto-native company to obtain a federal trust charter through the Office of the Comptroller of the Currency (OCC). Circle CEO Jeremy Allaire told Bloomberg that the Boston-based fintech is “making good progress” in obtaining a banking charter. If approved, it would […]]]>

The Stablecoin Circle issuer is in talks with US regulators to become the fourth crypto-native company to obtain a federal trust charter through the Office of the Comptroller of the Currency (OCC).

Circle CEO Jeremy Allaire told Bloomberg that the Boston-based fintech is “making good progress” in obtaining a banking charter. If approved, it would make Circle a federally regulated entity offering custodial, stablecoin management, payment, exchange, and other services.

“They’ve done a lot of work to lay the groundwork for how they’re going to oversee crypto, how they’re going to oversee stablecoin issuers specifically,” Allaire added.

The blockchain company has signaled its desire to get the green light from the OCC in August 2021. Since then, it has 18 months to execute its business plan and show the OCC that it can operate safely. security. At the end of this period, the regulator will assess Circle’s operations and determine whether it will sign a final charter.

With the approval, Circle would join Anchorage, Paxos Trust and Protego Trust which have received preliminary approvals to become the only national trusts born into the crypto ecosystem. In particular, the endorsement indicates that the OCC was comfortable with these companies as custodians, which is important for a hack-prone industry.

Circle has raised nearly $1 billion

Kraken and Avanti also secured approval from the Wyoming state regulator to launch a crypto bank under an SPDI charter. A special purpose depository institution charter allows its holder to operate an independent bank, which reduces reliance on third-party financial institutions and enables it to provide depository, custodial and trust services for digital assets.

Circle expects to serve as a compliant bridge to the US dollar payment system and its USDC stablecoin. However, it will be required to comply with all federal and state laws, including “know your customer”, anti-money laundering and related regulations. It will also be compliant with SPDI and digital asset laws, which include requirements that escrows must be 100% reserved and meet consumer protection standards.

Circle made headlines this week raising $400 million in new funds, led by BlackRock, the world’s largest asset manager with nearly $8 trillion in assets under management. This round, plus the $440 million raised in 2021 and a $110 million Series E the stablecoin issuer raised in 2018, brings its total funding to nearly $1 billion.

In addition to its investment and role as the primary asset manager of USDC’s cash reserves, BlackRock has partnered with Circle to explore capital market applications for its stablecoin.

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Telcoin now connects any US bank account to DeFi trading in an updated mobile app https://alg-a.com/telcoin-now-connects-any-us-bank-account-to-defi-trading-in-an-updated-mobile-app/ Thu, 14 Apr 2022 07:00:00 +0000 https://alg-a.com/telcoin-now-connects-any-us-bank-account-to-defi-trading-in-an-updated-mobile-app/ Starting today, US-based users will be able to instantly cash out up to $1,000. Once the preliminary “fast deposit” threshold is exceeded, users can deposit any amount up to their individual bank’s limits, based on standard settlement schedules. After the initial beta, Telcoin plans to gradually increase fast deposit limits to enable instant DeFi trading […]]]>

Starting today, US-based users will be able to instantly cash out up to $1,000. Once the preliminary “fast deposit” threshold is exceeded, users can deposit any amount up to their individual bank’s limits, based on standard settlement schedules. After the initial beta, Telcoin plans to gradually increase fast deposit limits to enable instant DeFi trading in a safe manner.

“A simple and secure on-ramp to DeFi is something our users have been asking for, and we’re excited to make it a reality today,” says Paul Neuer, CEO of Telcoin. “We now plan to roll out similar stablecoins elsewhere, with the goal of providing equal access to digital assets around the world and enabling instant and affordable digital funds transfers using DeFi instead of money transfer services or traditional banks.

Telcoin previously migrated its self-custodial digital asset wallets to Polygon Network, a popular scaling solution for the Ethereum blockchain. In addition to the ability to store multiple assets, Polygon allows Telcoin transactions that cost pennies instead of dollars or tens of dollars. Transactions in the Telcoin app go through TELx, the decentralized liquidity engine of the Telcoin platform, where users who provide liquidity in the form of pairs of tradable assets can earn a share of transaction fees and, in some cases, TELs and other reward tokens.

A growing list of 13 digital assets is currently available for trading in the Telcoin app, including TEL, WBTC, WETH, USDC, AAVE, BAL, QUICK, DFX, CADC, EURS, XSGD, LINK, and MANA. Additional tokens will be added at regular intervals, as Telcoin aims to provide an intuitive and low-cost alternative to existing centralized exchanges.

In addition to securely storing and exchanging digital assets, the Telcoin app also offers the best digital fiat money transfers from United States and Canada to 24 mobile money platforms in 16 countries. The company aims to bring these two worlds together – traditional fintech and the burgeoning crypto economy – in future releases that bring users around the world the most affordable personal financial product at their fingertips.

Telcoin Group is headquartered in Singapore where its operating entity is licensed as a major payment institution. The Group’s subsidiaries are also registered as Money Services Business in United States, Canadaand Australia. Telcoin also supported Nebraska’s Financial Innovation Act to create digital asset depository institutions for state-chartered banks. The bill was enacted in May 2021.

SOURCE Telcoin

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US bank profits down in first quarter https://alg-a.com/us-bank-profits-down-in-first-quarter/ Fri, 08 Apr 2022 12:42:00 +0000 https://alg-a.com/us-bank-profits-down-in-first-quarter/ NEW YORK, April 8 (Reuters) – Big U.S. banks are expected to post a sharp fall in first-quarter profits from a year ago as they benefited from exceptionally strong deals and transactions, and funds put aside for loan losses. Net income for the six largest U.S. banks will decline about 35% from a […]]]>

NEW YORK, April 8 (Reuters) – Big U.S. banks are expected to post a sharp fall in first-quarter profits from a year ago as they benefited from exceptionally strong deals and transactions, and funds put aside for loan losses.

Net income for the six largest U.S. banks will decline about 35% from a year earlier, according to analysts’ estimates from Refinitiv I/B/E/S. Investment banking revenues stagnated after the Russian invasion of Ukraine in late February.

The quarter will be difficult for the biggest banks, according to analyst Christopher McGratty of Keefe, Bruyette & Woods. Estimated revenue declines of 36% in investment banking and 18% in trading are the biggest headwind, he said.

“Last year was huge for banking capital markets, so comparisons are tough,” McGratty said.

The quarter could be viewed as a short-term pain with the promise of long-term gain, Barclays analyst Jason Goldberg wrote in a report. One example came on March 31 when PNC Financial Services Group lowered its first-quarter revenue forecast but raised its full-year expectations, he noted.

Investors should focus more on the prospects for banks to increase net interest income, or the difference between loan income and interest paid on deposits and other funds, as they benefit from higher interest rates. students.

Bank executives will be asked for their views on whether the US economy will continue to grow if the war in Ukraine continues and the Federal Reserve continues to raise interest rates in an attempt to quell inflation. They may be in a rush to find out if low-income borrowers can make repayments after rising fuel and food prices.

JPMorgan Chase & Co (JPM.N)the largest bank in the United States, publishes its results on Wednesday.

Thursday, Citigroup Inc. (NC)Wells Fargo & Co (WFC.N)Goldman Sachs Group Inc. (GS.N) and Morgan Stanley (MS.N) report. Bank of America Corp (BAC.N) is due the following Monday.

Analysts expect pre-provision net income — which isn’t clouded by swings in set loss reserves during the pandemic — to decline more modestly than the overall fall in earnings.

Credit Suisse analyst Susan Roth Katzke expects a 7% fall in net income before provisioning, against a 24% fall in earnings per share at the banks she covers.

A growing concern for investors is whether banks, particularly JPMorgan, allow spending to rise too high. JPMorgan’s non-interest expenses jumped 11% last quarter, in part because of rising wages. He also warned of rising technologies and acquisition costs. Read more

Banks are more exposed to possible trade losses this quarter, especially in commodity markets which turned volatile after Russia launched what it calls a “special military operation” in Ukraine.

Some banks, such as Citigroup, may set aside provisions for Russian business losses after Western countries began imposing sanctions. Citigroup said it could lose nearly half of its $9.8 billion exposure in a severe scenario. Read more

Another unknown is the extent to which banks slowed their share buybacks during the quarter. Buybacks boosted earnings per share, but may have been tempered as banks saw their excess capital eroded by unrealized losses on bond holdings which fell in value as yields rose during the quarter. . L2N2W31XD

Reporting by David Henry in New York. Additional reporting by Sinéad Carew. Editing by Matt Scuffham


Warning: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. This is not a solicitation to trade commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for loss and/or damage resulting from the use of this publication.

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Top US banking regulator questions crypto’s ‘long-term sustainability’ https://alg-a.com/top-us-banking-regulator-questions-cryptos-long-term-sustainability/ Fri, 08 Apr 2022 07:00:00 +0000 https://alg-a.com/top-us-banking-regulator-questions-cryptos-long-term-sustainability/ Michael Hsu, chief federal regulator of the nation’s largest banks, said on Friday he found the arguments questioning the long-term value of cryptocurrency “compelling,” while calling for a tough regulatory regime to protect consumers and the economy from the risks posed by stablecoins. “The rise of Web3 and a blockchain-based digital economy are not inevitable,” […]]]>

Michael Hsu, chief federal regulator of the nation’s largest banks, said on Friday he found the arguments questioning the long-term value of cryptocurrency “compelling,” while calling for a tough regulatory regime to protect consumers and the economy from the risks posed by stablecoins.

“The rise of Web3 and a blockchain-based digital economy are not inevitable,” Hsu, acting comptroller of the currency, told a lecture at the University of London’s Institute of International Law. Georgetown, highlighting analyzes made by crypto critics, including Signal founder Moxie. Marlinspike and crypto critic and Dan Olson.

Marlinspike argued in a widely read blog post in January that Web3 is a flawed concept because decentralized protocols are inherently inefficient and that developers have been drawn to crypto projects not because they solve problems that centralized Internet companies cannot, but because they See it as a way to get rich quick.

Olson, video essayist, is the producer of a 2 hour viral withdrawaln of cryptocurrencies that compares the crypto craze to the housing bubble that led to the 2008 financial crisis. It has nearly 7 million views on YouTube.

Hsu echoed that metaphor in his comments on Friday, comparing cryptocurrency and blockchain to financial derivatives that supercharged the economic meltdown of the 2000s. He said derivatives genuinely solve problems and help spread better risks, but only when they are well regulated.

“I think where we are with digital assets looks very similar to me, that you’re kind of in the early days and if you can architect it well and avoid excess, you can get closer to the promise and the potential” of the technology, he says.

Despite his doubts about the technology, Hsu said that “it is difficult to ignore the rapid growth of the developer community, market signals regarding the long-term potential of blockchain businesses, and statements and actions of a range of policy makers and governments”.

Hsu argued that Congress and regulators should move quickly to create a stablecoin oversight regime, which he says supports the entire $2 trillion market for cryptocurrencies, even if their market value is only $180 billion.

Stablecoins like tether USDTUSD,
+0.01%
and USD Coin USDCUSD,
,
are digital assets whose value is indexed to the US dollar DXY,
-0.45%
and are used by crypto investors to trade various digital assets such as bitcoin BTCUSD,
-1.64%
or ether ETHUSD,
-3.04%
and as a stable store of value for uninvested cryptocurrency.

“If there were to be a run on stablecoins, the entire crypto economy would likely be impacted, causing outsized losses for ordinary people who own crypto and potentially leading to a host of other ripple effects. coaching.”

To avoid such an outcome, Hsu argued that legislation should be passed requiring bank-like regulation of stablecoins and mandating the interoperability of dollar-based stablecoins.

Hsu’s remarks follow a series of bills being pushed through Congress that would put in place a new regulatory regime for stablecoins, including a new invoice proposed Wednesday by Pennsylvania Sen. Pat Toomey, the ranking Republican on the Senate Banking Committee.

Ian Katz, an analyst at Capital Alpha Partners, wrote in a note to clients this week that “the field of crypto-related legislation is starting to get crowded,” pointing to competing legislation submitted by Sens Republicans. Bill Haberty of Tennessee and Trey Hollingsworth of Indiana, as well as a bipartisan bill crafted by Senator Cynthia Lummis, a Republican from Wyoming and Senator Kirsten Gillibrand, a Democrat from New York.

He noted that regulatory proposals on stablecoins generally envision a primary role for Hsu’s OCC, while the industry attempts to shape legislation that would regulate the broader crypto economy so that the Commodity Futures Trading Commission is the main regulator of cryptos that are not stablecoins. .

Still, divisions between Democrats and Republicans mean “we don’t expect any major legislation passing Congress this year,” Katz wrote. “Even next year it will be a tough fight.”

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Russia prevented from paying its debt with American bank funds https://alg-a.com/russia-prevented-from-paying-its-debt-with-american-bank-funds/ Tue, 05 Apr 2022 15:42:00 +0000 https://alg-a.com/russia-prevented-from-paying-its-debt-with-american-bank-funds/ The United States is barring Russia from repaying its debt using funds held in U.S. banks, the U.S. Treasury announced on Tuesday, increasing economic pressure on Moscow over its actions in Ukraine. The European Commission, meanwhile, proposed new sanctions against Russia, including a ban on buying Russian coal and Russian ships entering EU ports, and […]]]>

The United States is barring Russia from repaying its debt using funds held in U.S. banks, the U.S. Treasury announced on Tuesday, increasing economic pressure on Moscow over its actions in Ukraine.

The European Commission, meanwhile, proposed new sanctions against Russia, including a ban on buying Russian coal and Russian ships entering EU ports, and said it was also working to ban oil imports.

“Today is the deadline for Russia to make another debt payment,” a U.S. Treasury spokesman said Tuesday. “Effective today, the U.S. Treasury will no longer allow any dollar debt payments from Russian government accounts with U.S. financial institutions.

“Russia must choose between draining precious remaining dollar reserves or new incoming revenue, or defaulting.”

Debt payments had so far been exempt from a near-complete lockdown that separated Russia from the global financial system, and Moscow had made several payments to foreign creditors through major US banks.

The country has also been allowed to receive payments for oil and gas sales, although the United States has banned imports from Russia.

The White House, however, warned on Monday that new sanctions were looming against Russian leader Vladimir Putin following the emergence of alleged atrocities in areas of Ukraine formerly occupied by Russia.

The latest U.S. move “will further drain the resources Putin is using to continue his war against Ukraine and bring more uncertainty and challenges to their financial system,” the Treasury official said in a statement.

In a speech posted on Twitter, European Commission President Ursula von der Leyen presented new sanctions, including a ban on coal imports from Russia worth 4 billion euros a year, and a total ban on transactions on four key Russian banks, including the country’s second. the largest, VTB.

“We are working on additional sanctions, including on oil imports, and we are considering some of the ideas presented by member states, such as taxes or specific payment channels like an escrow account,” von der Leyen said. .

The EU will also ban Russian vessels and vessels operated by Russia from accessing EU ports, although there are exemptions for agricultural and food products, humanitarian aid and energy.

In addition, the bloc will ban Russian and Belarusian road transport operators and prohibit the sale to Russia of quantum computers, advanced semiconductors, sensitive machinery and transport equipment worth around 10 billion euros per year. (AFP, Reuters)

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US Bank Business Triple Cash Rewards World Elite Mastercard Credit Card Review 2022 – Forbes Advisor https://alg-a.com/us-bank-business-triple-cash-rewards-world-elite-mastercard-credit-card-review-2022-forbes-advisor/ Fri, 01 Apr 2022 07:00:00 +0000 https://alg-a.com/us-bank-business-triple-cash-rewards-world-elite-mastercard-credit-card-review-2022-forbes-advisor/ US Bank Business Triple Cash Rewards World Elite™ Mastercard® vs. Ink Business Cash® Credit Card For those who don’t plan to spend lavishly on gas or restaurants, Chase Ink Business Cash will provide 5% cash back on the first $25,000 of combined spending with phone, internet and cable bills and at office supply stores. This […]]]>

US Bank Business Triple Cash Rewards World Elite™ Mastercard® vs. Ink Business Cash® Credit Card

For those who don’t plan to spend lavishly on gas or restaurants, Chase Ink Business Cash will provide 5% cash back on the first $25,000 of combined spending with phone, internet and cable bills and at office supply stores. This exceeds the US bank card for most small business owners, but for those spending over $41,700 in these categories, the US bank card once again exceeds the maximum earnings due to the Ink Business card cap. Cash. The Chase Ink Business Cash also earns 5% cash back on the first $25,000 spent on combined purchases from office supply stores and internet, cable and phone services each account anniversary year and 2% cash back on the first $25,000 spent on combined gas station and restaurant purchases each account anniversary year. Earn 1% cash back on all other purchases.

For some whose business spending habits align well with Chase Ink’s rewards program, the card may make more sense. For others, the American bank could rather. US Bank offers an introductory APR on purchases and balance transfers, where the Chase Ink card offers an introductory APR of 0% on purchases for 12 months, then a standard APR of 13.49% – 19 .49% variable applies. Neither card has an annual fee, and the Chase card offers a number of superior benefits, such as damage waiver for car rental and purchase protection benefits. Ultimately, the decision between these two comes down to spending habits and benefit priorities.

US Bank Business Triple Cash Rewards World Elite™ Mastercard® vs. American Express Blue Business Cash™ Card

The American Express Blue Business Cash™ card (conditions apply. See rates and fees.) doesn’t quite match the reward potential for spenders in the same categories, but its rewards may make sense for those who don’t fit into the restricted set of 3% cash back categories. US Bank card. Cardholders will receive the following rewards: 2% cash back on all eligible purchases up to $50,000 per calendar year, 1% thereafter. Those who can spend at least $33,334 on office supplies, gas, or restaurants or cell phone service providers with the US bank card will earn better cash back than those who spend $50,000 on anything. or with the American Express Blue Business Cash ™ card.

The American Express Blue Business Cash™ card offers an initial APR of 0% on purchases for 12 months from the date the account is opened, then a variable APR of 13.49% to 21.49% applies on purchases and balance transfers. Balance transfers must be made within 60 days of account opening and a fee of $5 or 3%, whichever is greater, applies. US Bank Business Triple Cash offers an introductory APR on purchases and balance transfers for a slightly longer period, so for those looking to make large purchases on the card and pay off balances slowly, the US Card Bank offers a few months of extra time.

Alternatively, additional Blue Business Cash benefits and perks offer extended warranties, purchase protection, and car rental loss and damage insurance waivers. The choice between these cards depends on a company’s spending habits, but the combination of these cards can also have advantages: where the American bank card does not offer more than 1%, the Blue Business Cash card can help maximize reward gains.

US Bank Business Triple Cash Rewards World Elite™ Mastercard® vs. Bank of America® Business Advantage Customized Cash Rewards Mastercard® credit card

With the Bank of America® Business Advantage Customized Cash Rewards Mastercard® credit card, cardholders can earn 3% cash back in the category of your choice, 2% cash back on restaurant purchases and 1% unlimited cash back on all other purchases. You’ll earn 3% and 2% cash back on the first $50,000 of choice category/restaurant combo purchases each calendar year and 1% thereafter.

For those with specific spending habits that can best utilize Bank of America Business Advantage cash rewards, there may be a good option here to earn 3% cash back in a single category, a category that can be changed once a month. For others, having a broader range of four categories may make more sense.

Introductory APR of 0% for the first 9 billing cycles on purchases, then a standard APR of 12.49% to 22.49% Variable applies on purchases and balance transfers. A balance transfer fee of $10 or 4% of each transaction amount, whichever is greater, applies offered by the Bank of America card does not compete well with the bank’s introductory APR offer American, but the Bank of America card offers a wide range of benefits, including travel accident insurance, collision damage waiver for rental vehicles, and emergency ticket replacement, among others. We think the US bank card is likely to make sense for more people except those with the right spending habits who can leverage the Bank of America card for travel benefits and category much narrower rewards.

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Jamie Dimon, US Bank and BMO show that value is a buyer-led construction https://alg-a.com/jamie-dimon-us-bank-and-bmo-show-that-value-is-a-buyer-led-construction/ Thu, 31 Mar 2022 07:00:00 +0000 https://alg-a.com/jamie-dimon-us-bank-and-bmo-show-that-value-is-a-buyer-led-construction/ JPMorgan Chase reported tuesday that he transferred 398,708 shares of the company to CEO Jamie Dimon last week. The shares – part of Dimon’s 2018 compensation package – are worth nearly $56 million, Bloomberg reported. It’s more than double the $24.5 million Dimon was pledged that year in performance share units. To be clear, JPMorgan […]]]>

JPMorgan Chase reported tuesday that he transferred 398,708 shares of the company to CEO Jamie Dimon last week. The shares – part of Dimon’s 2018 compensation package – are worth nearly $56 million, Bloomberg reported. It’s more than double the $24.5 million Dimon was pledged that year in performance share units.

To be clear, JPMorgan Chase said at the time that it could increase the number of shares – originally 243,697 – by up to 50% if the bank met a predetermined return on equity target, among other things. factors.

Additionally, JPMorgan’s share price is up about 38% since the 2018 compensation deal was struck.

Just like that, a package once supposed to encompass $31.5 million has moved north of sixty, when Dimon’s $1.5 million salary and $5 million cash bonus are included.

Tuesday’s filing is not an outlier. Dimon’s incentive bonus for 2017 was paid last March for a value of $51 million, according to Bloomberg. That’s up from an initial estimate of $23 million.

This emphasizes the “variability” of variable compensation – and reinforces the idea that value is a construct, and that the only opinion that matters in value is that of the buyer.

In Dimon’s case, the buyer is JPMorgan’s board – which made it clear last July, when it presented the CEO with a ‘special award’, that it was aiming to buy his services for at least five years.

The spectrum of M&A stocks

Indeed, the concept of value can have few constants. To illustrate, let’s look at mergers and acquisitions — specifically, comparing two proposed deals about three months apart by two banks, each taking on the US retail footprint of a foreign entity seeking to exit consumer banking in the States. -United.

Bank of the West, the US branch of the San Francisco-based French juggernaut BNP Paribas, had $105 billion in assets when the Bank of Montreal (BMO) offered $16.3 billion in December. To be fair, total assets are not the only factor that goes into determining value. But consider, US Bank in September offered to acquire MUFG Union Bank – and its $133 billion in assets – for $8 billion, less than half the price of Bank of the West.

Two other recent proposed acquisitions of banks with similar total assets show that transactions between BMO and US Bank may simply represent the high and low ends of a value spectrum. PNC paid $11.6 billion at the end of 2020 to buy BBVA’s $101 billion in US assets. More recently, TD announced that it would buy $89.1 billion in assets Premier Horizon for $13.4 billion.

The moral can be: it is not what a bank or a banker is worth; that is what this bank or banker is worth to the buyer.

Asterisks

And the pay numbers, like sports records, may well include asterisks. The value may also depreciate. Some Syracuse University basketball fans may say that men’s head coach Jim Boeheim has won 1,099 games in his career. But the NCAA showed it saw no value in 101 of those wins when it determined the program violated regulations in the mid-2000s and early 2010s.

Likewise, Barry Bonds may have hit more home runs than any baseball player. And if the spectrum of performance-enhancing drugs wasn’t an issue, he would have been a first-round lock. But baseball buyers — in this case, the sportswriters who vote every year — felt that home run totals weren’t valuable enough on their own to warrant entry into the Hall of Fame.

Banks can also value certain qualities or people over time. Barclays last month froze the unearned portion of former CEO Jes Staley’s deferred salary “pending further developments” stemming from UK regulators’ investigation into his links to convicted sex offender Jeffrey Epstein. This means Staley could lose $32 million worth of Barclays stock.

The bank clearly thought that at some point Staley was worth it. And that may still be the case, depending on the outcome of the case and the associated optics.

Goldman Sachs, in another example, has shown that it embraces the idea that value is tied to loyalty. The bank is said to have locked in unearned compensation it once promised to Gregg Lemkau and Eric Lane, two executives who left Goldman in 2020 and 2021 for companies that traditionally wouldn’t be seen as direct competitors.

Executives have signed contracts that say the bank has the right to withhold unearned funds, but historically Goldman had let departures slip to non-competitors. Perhaps feeling betrayed by these particular instances of executive flight, Goldman adhered to a stricter interpretation of the contracts.

Lemkau and Lane would not be alone. Goldman also reportedly blocked former Marcus executives Omer Ismail and David Stark from cashing out stock bonuses that had been vested and taxed up to five years earlier and banned them from alumni events. Ismail and Stark left Goldman in early 2021 for fintech startup Walmart.

It turns out Dimon could end up pocketing a figure closer to what was agreed for 2018. More than half of the stock reported Tuesday was withheld for tax purposes, Bloomberg reported.

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Russia’s payment on another bond is processed by the US bank -source https://alg-a.com/russias-payment-on-another-bond-is-processed-by-the-us-bank-source/ Tue, 22 Mar 2022 03:01:00 +0000 https://alg-a.com/russias-payment-on-another-bond-is-processed-by-the-us-bank-source/ A Russian ruble banknote is seen in front of a descending stock market chart in this illustration taken March 1, 2022. REUTERS/Dado Ruvic/Illustration Join now for FREE unlimited access to Reuters.com Register NEW YORK, March 21 (Reuters) – Russia’s coupon payment on a sovereign bond maturing in 2029 was handled by correspondent bank JPMorgan Chase […]]]>

A Russian ruble banknote is seen in front of a descending stock market chart in this illustration taken March 1, 2022. REUTERS/Dado Ruvic/Illustration

Join now for FREE unlimited access to Reuters.com

NEW YORK, March 21 (Reuters) – Russia’s coupon payment on a sovereign bond maturing in 2029 was handled by correspondent bank JPMorgan Chase & Co (JPM.N), a source said on Monday, the second times in recent days that the country seems to have avoided default.

Russia was due to make a $66 million payment to bondholders on Monday. Read more

Last week, it paid the interest due on two sovereign bonds, lifting doubts about its willingness and ability to service foreign debt after harsh sanctions were imposed by Western countries following its invasion of Israel. Ukraine.

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By making the payment, Russia avoided its first default, so far, since the 1998 financial crisis and its first on international obligations since the 1917 revolution. Read more

JPMorgan worked Monday with the US Treasury Department on the necessary approvals, the source familiar with the matter said.

The payment has moved to the next stage before the money is released to bondholders, the source added. Reuters could not find out which bank was acting as paying agent on the bond.

JPMorgan last week processed the payment as a correspondent bank and remitted it to Citigroup Inc (CN), which, as payment agent, distributed the funds to bondholders.

Russia has 15 outstanding international bonds with a face value of about $40 billion. Prior to the Ukraine crisis, around $20 billion was held by investment funds and fund managers outside of Russia. Read more

The next test of the country is a payment of $102 million on March 28 and after that, on March 31, there is a payment of $447 million that must be made in dollars. Its biggest payment of the year – and its first full “principal” repayment, of $2 billion – is due on April 4. Read more

Even if Russia is willing to pay, there could be complications in the coming weeks and months, particularly for bonds that must be managed in dollars, after a temporary license issued by the U.S. Bureau expires. of Foreign Assets Control on May 25. have nearly $2 billion in external sovereign bond payments to make before the end of the year. Read more

If Russia fails to make any of its bond payments within the defined grace periods, or pays in rubles when dollars or euros are specified, it will be a default. Read more

The Russian ruble stabilized on Monday and OFZ Treasuries returned to trading, albeit in a volatile fashion. Stocks and bonds last traded on the Moscow Stock Exchange on Feb. 25, and the central bank has yet to say when stock trading can resume. Russia invaded Ukraine on February 24, calling it a “special operation”. Read more

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Reporting by Megan Davies; Editing by Paritosh Bansal, Christopher Cushing and Muralikumar Anantharaman

Our standards: The Thomson Reuters Trust Principles.

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American bank: Goldman Sachs becomes the first American bank to offer over-the-counter crypto trading https://alg-a.com/american-bank-goldman-sachs-becomes-the-first-american-bank-to-offer-over-the-counter-crypto-trading/ Mon, 21 Mar 2022 07:00:00 +0000 https://alg-a.com/american-bank-goldman-sachs-becomes-the-first-american-bank-to-offer-over-the-counter-crypto-trading/ Goldman Sachs, a major US bank, is set to announce and become the first bank to trade an over-the-counter crypto transaction. Pushing its development of digital assets further in the market, Goldman with Galaxy Digital sold a new undeliverable option, a bitcoin-linked instrument. The move is seen as an unprecedented step in the growth of […]]]>
Goldman Sachs, a major US bank, is set to announce and become the first bank to trade an over-the-counter crypto transaction. Pushing its development of digital assets further in the market, Goldman with Galaxy Digital sold a new undeliverable option, a bitcoin-linked instrument.

The move is seen as an unprecedented step in the growth of the crypto market for investors due to OTC transactions. This step also represents the bank’s first direct exposure to the Bitcoin trading and crypto market instead of its customers.

Institutional players like Hedge Funds have been looking for ways to integrate bitcoin into their operating system. Since Goldman is involved in increasing the maturity of Hedge assets, this will force them to bet on the price without directly owning it.

Goldman, however, took a significant risk by becoming principal in all of these deals when put into perspective with its CME Group exchange-based bitcoin products.

Words from Galaxy Co-Chair Vanderwilt

Vanderwilt believes this is a much more systematic and relevant shift due to the upcoming future of exchange-based markets and products. He also says that while this looks like a big risk, it only reinforces banks’ faith and confidence in the maturity of crypto.

What is OTC crypto trading?

Over-the-counter crypto trading is a private transaction, i.e. the buying or selling of crypto and bitcoins. These agreements occur between two parties without the intervention of an intermediary. Parties can exchange one type of cryptocurrency for another type of cryptocurrency.

How will Goldman Sachs’ new move in crypto trading affect the market?

Due to OTC crypto trading, there will be a noticeable development in the market. There are many ways this crypto trading will affect the market. Some of them are listed below.

  • Although risky, this move will surely open up more choices in the cryptocurrency trading system.
  • This will provide direct and customizable exposures to the crypto market.
  • This will pave the way for other financial institutions to get into bitcoin trading.
  • In addition, this decision will eliminate the traditionally slow negotiation process. Goldman’s crypto trading is fast and the transactions available to investors are limited.

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