Headline Trading: Court News for BOA & Apple, Personnel Changes at JPMorgan
Bank of America Corp (NYSE:BAC) and Societe Generale (SCGLY) go to court today in their effort to reverse New York’s approval of MBIA’s (NYSE:MBI) 2009 restructuring. BOA and SG claim that the bond insurer misinformed then-Insurance Superintendent Eric Dinallo, according to Bloomberg. At the same time, final supervisory guidance for stress-testing practices at banks with more than $10B in total consolidated assets have been issued by the Federal Reserve Board, the Office of the Comptroller of the Currency, and the Federal Deposit Insurance Corporation. These agencies announced that, “the guidance highlights the importance of stress testing at banking organizations as an ongoing risk management practice that supports a banking organization’s forward-looking assessment of its risks and better equips it to address a range of adverse outcomes.” This guidance does not put into effect stress testing requirements in the Dodd-Frank Act or in the Federal Reserve Board’s capital plan rule for certain companies.
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JPMorgan Chase & Co. (NYSE:JPM) Chief Investment Officer Ina Drew will retire from the company after 30+ years. Co-Head of Global Fixed Income and Head of Capital Markets within the Mortgage Bank Matt Zames will be her successor, as well as maintaining his mortgage-related duties. Zames’ co-head of Global Fixed Income, Daniel Pinto, will head that group solo, as well as remaining CEO of the company’s Europe, Middle East and Africa region (working out of London).
Chesapeake Energy Corporation (NYSE:CHK): The Chesapeake Energy production deal with Eagle Ford is now reported to be delayed or cancelled. The deal was expected to bring $1B to the company. Chesapeake reports that the Permian Basin asset sale, Mississippi Lime JV is expected to close in Q3, and that it has suitable liquidity to finish planned asset sales.
Nokia Corporation (NYSE:NOK)’s stock rating has been slashed from Sell to Hold by Societe Generale Analyst Andy Perkins. Perkins notes that he predicts a similar trajectory for Nokia’s handset business to that encountered by Motorola Mobility, and he worries that operating losses and fees from restructuring could negate most of the company’s cash and even “bring into question Nokia’s very survival.” He predicts Nokia’s handset volumes to be down 30% in 2013 (from 2011),” and expects $2B in restructuring costs in the coming two years. Perkins lowered his target on the stock from 3 Euros to 1.80 Euros.
Apple Inc (NASDAQ:AAPL): In a patent lawsuit against Samsung Electronics (SSNLF) brought by Apple, an appeals court has turned in a mixed ruling. The court overturned earlier judgment regarding one patent, because “the district court committed legal error in one important respect.” In ruling on the appeals, the court determined that the district court’s reasons behind denying an injunction on “the D’889 patent” related to tablet computer design were issued in error and returned this issue to the lower court for continued proceedings. The appeals court did, however, continue a prior ruling that withheld a preliminary injunction against Samsung due to three of four patent infringement claims brought by Apple.
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