JP Morgan Chase CEO buys $26.5 million worth of shares: Shrewd or speculatory?

Many large banks have experienced tremendous collapse in the price of their shares over the last few weeks, a direction which continued unabated after a two-day ‘dead-cat bounce’ earlier this week. Some of the institutions concerned represent the largest percentage of global FX order flow and are prominent among Britain’s interbank sector in Canary Wharf. […]

JP-Morgan-Chase-CEO-buys-$26.5-million-worth-of-shares

Many large banks have experienced tremendous collapse in the price of their shares over the last few weeks, a direction which continued unabated after a two-day ‘dead-cat bounce’ earlier this week.

Some of the institutions concerned represent the largest percentage of global FX order flow and are prominent among Britain’s interbank sector in Canary Wharf.

Today, an interesting occurrence has bolstered the share price of JPMorgan Chase & Co. (NYSE:JPM), albeit very slightly after a massive downward spiral recently.

This occurrence comes in the form of a share purchase by the bank’s CEO Jamie Dimon, who purchased 500,000 shares in the company, with a total value of $26.5 million at the time of purchase.

As share prices across the board are continuing to dive, prominent interbank FX dealers such as Credit Suisse have cut the bonuses of staff by up to 36%, an initiative which has reached the very senior management, with Tidjane Thiam, the bank’s CEO, having stated earlier this week that he was preparing to take a larger hit than other Credit Suisse employees with regard to the reduction of his own bonus.

Deutsche Bank, the world’s second largest interbank FX dealer in terms of market share, is one of the most severely affected, having plunged so considerably that German government officials have publicly spoken out. Wolfgang Schaeuble, Germany’s finance minister, stated this week that he has “no concerns over Deutsche Bank” in answer to investor concerns over the bank’s capital position.

JPMorgan Chase is the world’s fourth largest interbank FX dealer by volume, retaining this position since 2014.

At the beginning of this year, the firm’s share prices began to head south dramatically, standing today at $53.02, 4.5% down from yesterday. Mr. Dimon’s purchase may have had a slight influence with regard to stemming the downward direction, however the question remains as to whether this was a strategic move on his part to buy shares at what could be a critical low point where they may not go any lower, therefore a safe investment, or whether this is purely speculative and it could be not quite the good time to buy bank shares as it seems.

Capture
Chart courtesy of Google Finance

Photograph: Downtown Manhattan. Copyright FinanceFeeds

Read this next

Retail FX

ThinkMarkets expands CFDs lineup to over 4000 ETFs and shares

ThinkMarkets has expanded its service offering by incorporating 2500 new CFDs on shares and ETFs on its ThinkTrader platform.

Retail FX

France regulator warns investors of Omega Pro, Businessempire.fr

France’s financial markets regulator alerted investors that scams related to Omega Pro Ltd are beginning to circulate, with the blacklisted firm capitalizing on the situation to run a range of “unrealistic” offers.

Digital Assets

Web3 platform Grand Time paid $2 million in token earnings to date

Community-driven Web3 platform Grand Time said its offering – which includes a multifaceted platforms and its native token – has been gaining significant traction highlighted by impressive operational metrics.

Institutional FX

FX volumes at MOEX halved in April as ruble gains gorund

Currency trading at Moscow Exchange (MOEX) halted its upward route in April as monthly volumes nearly halved from a month earlier.

Digital Assets

FTX US adds stock trading, fractional shares to crypto platform

FTX US, the American subsidiary of crypto exchange FTX has kicked off stock trading feature to its customers in an effort to compete with popular platforms such as Robinhood and eToro.

Industry News

UK FCA empowered to remove brokers’ permissions in 28 days

Businesses with permissions they don’t need or use, risk misleading consumers. These new powers will enable us to take quicker action to cancel permissions that are not used or needed.

Industry News

CFTC charges $44m Ponzi scheme but millions may have fled to foreign crypto exchange

The CFTC alleged that defendants transferred millions of dollars to an off-shore entity that, in turn, may have transferred funds to a foreign cryptocurrency exchange. None of these funds were returned to the pool.

Technology

Saxo Bank deploys Adenza to address Basel and EBA requirements

The integration of ControllerView will enhance Basel-driven capital calculations and reporting at Saxo Bank in support of the bank’s multijurisdictional capital and liquidity reporting requirements throughout Denmark, Switzerland and UK, with plans to expand into the Netherlands.

Executive Moves

ComplySci appoints CTO, CPO, and CLO to further regtech’s product expansion

ComplySci offers compliance software used by more than 1400 global institutions to identify risk and address regulatory compliance challenges.

<