Friday newspaper round-up: JP Morgan, Shadow banking, Standard Chartered
JP Morgan directors are top of the pile when it comes to income average of investment banks, the Guardian reported on Friday.
Bank of America Corp.
$37.91
11:10 25/04/24
FTSE 100
8,078.86
17:14 25/04/24
JP Morgan Chase & Co
$93.60
14:00 07/07/17
Rio Tinto
5,379.00p
16:45 25/04/24
According to research carried out by salary benchmarking website Emolument.com, directors at the American bank earn on average £461,000 a year – £214,000 in salary and a £272,000 bonus.
JP Morgan bankers, working in sales, trading and research, also earn 15% more than rivals at equivalent grades at second-place Deutsche Bank, with Bank of America Merrill Lynch clinching third spot, as it pays an average of £376,000.
Global shadow banking assets rose to a record $75trn (£46.5trn) in 2013, the Daily Telegraph reported.
According to a research by the Financial Stability Board (FSB), the value of mortgage-backed securities, risky investment products and other non-bank entities rose by $5trn to $75trn in 2013
Holding about 25% of the world's total financial assets, shadow-banking, which is not constrained by bank regulation, now represents almost half of the global banking system. It is also equivalent to 120% of global gross domestic product (GDP).
Standard Chartered shares plummeted to their lowest level in five-and-a-half years on Thursday after reports that US authorities had reopened an investigation into the bank over breaching sanctions with Iran, the Financial Times reported.
US regulators, which fined Standard Chartered £415m in 2012 for breaching sanctions with Iran, have now reopened their investigation, adding to the bank woes only days after Peter Sands, the group chief executive, admitted the bank could not achieve its profits promises for the year.
The future of Standard Chartered, which has lost more than 30% this year, is likely to generate concerns among investors after its shares slumped to 943p for the first time since 2009.
A tax dispute with the Mongolian government has cut into the value of Rio Tinto's huge copper project in Mongolia, the Oyu Tolgoi mine. The miner thus looks set to take a $2.5bn write-down on the value of that roubled undertaking, although it had already flagged that risk at the half-year stage. At $5bn to develop the deposit could see the Asian country's economic growth rate increase by approximately half, the International Monetary Fund recently estimated, according to The Times.
The fall in the international price of oil is indeed making itself felt in the shale oil industry. In its latest quarterly results the outfit said that each quarter during which the price of crude remained at $85 per barrel its quarterly profits would be reduced by $2bn.
That is proof of the magnitude of the pressures which the sector is coming under as a result of the recent fall in crude prices, says The Times.