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JPMorgan said to near closure over princeling hires in Asia, is also in the news for closing accounts


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JPMorgan said to near closure over princeling hires in Asia, is also in the news for closing accounts


Georgia-basedSunTrust Banks Inc.and SynchronyFinancial of Connecticut help close this earnings week.

SunTrust postednet income available to common shareholders of $475 million, or . The S&PCapital IQ consensus normalized EPS estimate for the recent quarter was 88cents.

May wenever "" again. In the next fewmonths, JPMorgan Chase & Co.may pay as much as $200million to settle a federal probe into its hiring practices inAsia.

The NewYork-based bank is also in the news for closing accounts. One case involves anArab-American family claiming racial discrimination,and Reuters reports a court has ruled their suit can proceed. It wasn't justpersonal deposit accounts, which JPMorgan says are governed by an agreement thatallows closing at any time and for any reason. The bank also ended its contractwith Najah and Kathy Manni's debt collection business, JM Adjustment Services,in 2015, reportedly over its "reputational risk."

, Credit SuisseGroup AG and HSBCHoldings Plc are also on a list of clients no longer being served.They are among 30 banks and brokers affected by JPMorgan's decision to shutterits governmentsecurities settlements business, Bloomberg News and The Wall Street Journal report. A spokesman for the bank said itwas determined to be a noncore service, but sources for the WSJ add the move was partly driven by adisagreement over technology between JPMorgan, and Bank of New York MellonCorp.

Meanwhile, theCanadian Money Service Business Association has written to the Office of theSuperintendent of Financial Institutions to complain about the closing of itsmembers' bank accounts. "Without risk of money laundering or reputationaldamage, we can only assume that the decision to close these accounts relates tothe competitionthat they represent," The FinancialPost quotes the letter as saying. Bank of Nova Scotia acknowledged to the Post it has been "exiting somerelationships" following a review of the business.

Meanwhile,Goldman Sachs GroupInc. is offering a private equity fund called West Street Capital Partners,again pushing onward where other banks (for regulatory reasons) no longertread.

Asset manager

Also pushingonward, but in London, is Point72 Asset Management LP. Since reopening an officein 2015, it has doubledthe site's headcount even as others pull out amid Brexit worries. The New York Times reports Point72 plansto add even more employees, bringing their numbers to 50 to 70 from the current23. It also plans to grow in Singapore.

And has agreed to a settlement with the SEC over charges it investors in a private placement,overstating subsidiaries' AUM, failing to disclose conflicts of interest andreporting profits instead of losses.


The Fed Boardhas adjusted postingrulesin its Payment System Risk policy to bring them in line with enhancements madeto Reserve Banks' same-day automated clearinghouse service. And the CFTC issuedguidance regarding recovery andwind-down plans for clearinghouses of systemic importance.


says bringingits business to China is "crucial," but the complexity of new rulesthat would allow it to do so is giving it pause. It is considering applying forthe licensethis year, Reuters reports.

A , but with bitcoin: Trendon Shavers has beensentenced to 18months in prison, The Associated Press reports.

Sen.Tim Kaine, Hillary Clinton'spossible running mate, is drawing flak for signing twoletterslobbying for lighter financial regulations. In a statement posted on itswebsite, Democracy for America said, "It should be disqualifying for anypotential Democratic vice presidential candidate to be part of alobbyist-driven effort to help banks dodge consumer protection standards andregulations designed to prevent banks from destroying our economy."

In other parts of the world

Asia-Pacific:BI keeps key rate at 6.5%;Goldman Sachs under scrutiny in 1MDB probe

Europe:Postbank disposal rethink; AdminRe stake disposal plan; Bankia, Sabadell earnings

Middle East& Africa: Bank of Mozambiquehikes rates again; Kenya eyes term limits for bank CEOs

Theday ahead

Early morning futures indicatorspointed to a higher opening for the U.S. market.

In Asia, the Nikkei 225 dropped 1.09%to 16,627.25 and the Hang Seng decreased 0.16% to 21,964.27.

In Europe, around midday, the FTSE 100was up 0.42% to 6,728.27, and the Euronext 100 was up 0.06% to 867.81.

Onthe macro front

The PMI manufacturing index flashreport is due out today.

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