JPMorgan's $13B Settlement in Question, and the 2013 Market Laggards | Where the Money Is - 10/30/13

TL;DR

ADP job numbers for October show slower hiring due to the federal government shutdown. JP Morgan's settlement is facing complications and 2013 Market laggards in the financial sector are analyzed.

Transcript

ADP job numbers are out JP Morgan's historic settlement is in question and we've got your 2013 Market laggards you're in the right place folks because this is where the money is welcome to the show on the eve of Halloween David I won't ask you about your Halloween costume because I fear that you don't have one yet however however listen to this coo... Read More

Key Insights

• ⏮️ October's job growth was below average, but still better than some previous years.
• 😀 JP Morgan's settlement with the Justice Department is facing uncertainties and challenges that might impact the final amount.
• ❓ Barclays might benefit from splitting itself into two distinct entities to improve evaluation and performance.
• 👨‍💼 Companies like Aflac and Blackstone are experiencing changes in their profits and business strategies.
• 🇨🇷 Western Union's compliance costs are affecting its profitability and outlook.
• ❓ Super Regional Banks, including PNC and Huntington, offer promising strategies and valuations.

Questions & Answers

Q: How many jobs were added in October according to ADP?

According to ADP, 130,000 jobs were added in October. However, this number is lower than the average monthly job growth since 2001.

Q: What challenges is JP Morgan facing with its settlement?

JP Morgan's settlement with the Justice Department is facing complications regarding the FDIC and the level of criminal protection the bank will receive after paying $13 billion.

Q: Why is splitting Barclays into two parts suggested?

The suggestion to split Barclays into two parts is based on the idea of differentiating the good and bad components of the company for better evaluation. This is a strategy similar to what other banks have done.

Q: What are the key insights from the content?

1. October job growth was lower than the average monthly job growth since 2001.
2. JP Morgan's settlement with the Justice Department is facing challenges and uncertainties.
3. Barclays may benefit from splitting itself into two parts for better evaluation.
4. Aflac's profit has fallen, but the company has a consistent dividend track record.
5. Blackstone's securitization of rental properties is a unique development in the market.
6. Western Union's compliance costs have affected its profitability.
7. Super Regional Banks, such as PNC and Huntington, show promising strategies and valuations.
8. MNT, a bank with strong historical performance, is lagging behind in the current market.

Summary & Key Takeaways

• ADP reports 130,000 jobs added in October, lower than the average monthly job growth of 177,000 since 2001.

• JP Morgan's $13 billion settlement with the Justice Department is facing challenges, particularly regarding the FDIC and criminal probes.

• Barclays' earnings are discussed, with a suggestion to split the company into two for better evaluation of its components.

• Other headlines include Aflac's profit fall, Blackstone's securitization of rental properties, Western Union's compliance costs, and Super Regional Bank rankings.