In hiring news, UBS (NYSE:UBS) has added a new member to its team. Peter Baccile, who comes to the financial services group via JPMorgan Chase & Co. (NYSE:JPM), will become the company’s joint global head of real estate, leisure and lodging investment banking. That wasn’t the only loss that JP Morgan experienced recently. After reporting a $2 billion hit on a trading position in the second quarter, Oppenheimer now estimates that the loss will double to $4 billion by June 30. Despite this hit, Oppenheimer maintains JP Morgan’s Outperform rating on the shares, citing its belief that the negative impact of the situation on the stock is limited.
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Still paying for the honor of using your own money? You’re not the only one. According to a survey of over 6,000 people from the Pew Center on the States (as reported in Bloomberg Businessweek), consumers are still paying fees as high as $35 on their debit cards, despite a Federal Reserve mandate two years ago that required banks to only charge those fees to customers who had signed-on to overdraft programs.
The New York Federal Reserve, reports Reuters, sold all its Triaxx collateralized debt obligations that were part of the portfolio created during the bailout of insurer American International Group Inc. Bank of America Corp.’s (NYSE:BAC) Merrill Lynch came out the winner following a competitive bid process that included eight other Wall Street dealers.
Riding on expectations that Arena Pharmaceuticals, Inc.‘s (NASDAQ:ARNA) obesity drug lorcaserin will likely gain approval following a positive FDA panel vote, Jeffries bumped the drug manufacturer up from Underperform to Buy and boosted its price target on shares from $1 to $9. The firm estimates that sales for lorcaserin could reach $1.5 billion in 2020.
On Wednesday, Citigroup Inc. (NYSE:C) released a client note that posited the following strategy. First, interest rates in the U.K. and Eurozone should be taken down to the low, low price of zero. Next, some outside the box thinking is needed regarding all types quantitative easing of “less liquid and higher credit risk securities” beyond government bonds. Lastly, fiscal authorities should consider engaging in “helicopter money drops,” a strategy that has authorities in each region partnering with the central bank to pump money directly into their respective economies.
The U.K. Appeals Court, on Thursday, upheld the recent High Court decision that software in select Nokia Corporation (NYSE:NOK) products violated a patent held by IPCom GmbH & Co. According to Nokia, the European Patent Office’s revocation of the patent from IPCom, a German patents licensing company, won’t be impacted by the Appeals Court decision. The patents were originally developed by German auto-parts supplier Robert Bosch GmbH for its automotive telephone systems, before selling the patents to IPCom in 2007. Both Nokia and HTC Corp. (2498.TW) have been party to protracted disputes with IPCom over its patent portfolio.
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