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Criticized energy loans jump at JPMorgan; BB&T's say-on-pay gets even less support than Citi's


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Criticized energy loans jump at JPMorgan; BB&T's say-on-pay gets even less support than Citi's

Guess whatjust went from $4.26 billion to $8.03 billion as of March 31 — criticizedperforming loans in JPMorgan Chase& Co.'s oil-and-gasportfolio. Criticized nonperforming loans, meanwhile, went from $277 million to$1.71 billion. But at least legal expense was said to be "not material,"though the bank also admitted its hiring practices in Asia are now underinvestigation by the JusticeDepartment as well as by the SEC.

It might'vestung when Mike Corbat's 2015 compensation only got support from shareholders. But overat BB&T Corp.,executive compensationreceived 311,220,573 votes in its favor, and 258,789,162 votes against.

Also in banking news:

wants todo M&A inmetropolitan New York and New Jersey, even at the expense of faster loangrowth.

waived itsmaximum retirement age for Chairman DavidSoule Jr. as the Maine-based bank continues its recruitmentprocess.

In the fintechsphere:

Varo Money iscoming out with a mobile-bankingapp and planning to partner with a bank. But what's really interestingabout the Warburg PincusLLC-backed startup is its aim to get its own bank charter, TheWall Street Journalnotes.

And CotivitiHoldings has filed for its IPOand expects to list its stock on the NYSE under the ticker symbol COTV. Thelist of underwriters is led by GoldmanSachs & Co.

Speaking offund raising, J. Daniel Plants of activist investor is stillslamming FBR & Co.'slow advisory revenue: "Youraise a billion dollars for some company and you can't get hired to do M&Afor them?" He told The New YorkTimes the firm has "gone on a massive hiring and acquisition spree totry to become the next D.L.J. or Jefferies, even though there's nopossible way that will ever succeed."

Meanwhile, theHalliburton-Baker Hughes deal has fallenthrough, and what a blow it must be, notes Reuters,to lead advisers Goldman and CreditSuisse Group AG.

And two NewJersey-based credit unions havecombined: ($20.1 million) with AdvancedFinancial Federal Credit Union ($76.7 million).

Statements on the regulatoryfront:

"The decision-making process and communications of the FederalOpen Market Committee reflect a phonyconsensus that obscures accountability and increases inertia," the Journal quotes Peter Fisher, former headof markets at the Federal Reserve Bank of New York.

And "Now that all major securities firms in the U.S. are part ofbank holding companies and are subject to enhanced prudential standards as wellas capital and liquidity stress tests, providing these firms with access to theDiscountWindow might be worth exploring," said William Dudley of the New YorkFed.

At the Berkshire Hathawayshareholder meeting, Warren Buffett said he "personally [felt] OKabout American Express Co.,"though he acknowledged its position would "continue to be ." He had someharsh words about Valeant, on the other hand, describing it as "." ViceChairman Charlie Munger called it "a sewer." Ruane Cunniff & Goldfarb's Sequoia Fund wasamong Valeant's investors, but Buffett clarified the position had been thefault of one manager who increased his holdings despite the board's doubts andhas since been fired.

Another Valeant investor, PershingSquare Capital Management LP, has tried to do damage control. The Journal posts a copy of Bill Ackman'semail to Buffett after one of Munger's earlier criticisms: "WhileI have enormous respect for Charlie, I think he has gotten this one wrong,"Ackman writes. "Your friends at Ruane Cunniff are Valeant's largestshareholders having held the stock for years, and hold Mike Pearson inextremely high regard. … I would love to set up a meeting where you and Charliecould meet Mike Pearson [who] would like the opportunity to clear hisreputation in response to Charlie's recent comments." Buffett responded atthe time: "None of this came from me, and I know that Bob Goldfarb andothers at Ruane Cuniff think well of both Valeant and Pearson … Charliealways makes up his own mind, as I'm sure you've noticed. It won't be easyto change."

The day ahead

Earlymorning futures indicators pointed to a higher opening for the U.S. market.

In Asia, the Nikkei225 declined by 3.11% to 16,147.38.

In Europe,around midday, the Euronext 100 was higher by 0.41% to 873.42.

On the macro front

The PMImanufacturing index, the ISM manufacturing index and the construction spendingreport are due out today.

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