Daily Archives: November 10, 2016

JPMorgan Chase to drop commissions-paying retirement accounts

As Wall Street’s wealth management firms scramble to comply with a new U.S. Department of Labor rule, JPMorgan Chase & Co said on Wednesday it will stop offering commissions-paying retirement accounts.

In doing so, J.P. Morgan will join Bank of America’s Merrill Lynch and other firms that recently adopted the approach.

The so-called fiduciary rule, which takes effect in April, is aimed at forcing brokerages to put their clients’ interests first by eliminating any conflict of interest created by brokers’ commissions.

The rule targets “transactional” accounts, which charge clients a commission for every trade, and rather than wade through the complexities of the 1,000-plus page regulation, many firms are just dropping transactional retirement accounts altogether.

Starting in April, clients of Chase Wealth Management, Private Bank and J.P. Morgan Securities have two options: they can either chose to pay a financial adviser a flat fee based on how much money they have invested, or they can use an online platform to manage their retirement account themselves.

Read on.

Here’s the memo Jamie Dimon just sent to JPMorgan staff about the US election

Business Insider:

Here’s the full note:

Message from Jamie Dimon

Dear colleagues,

We are going through a period of profound political and economic change around the world, and American citizens showed that deep desire for change in voting to elect Donald Trump as the 45th President of the United States. We have heard through democratic processes in both Europe and the United States the frustration that so many people have with the lack of economic opportunity and the challenges they face. We need to listen to those voices.

We have just been through one of the most contentious elections in memory, which can make it even harder to put our differences aside. But that makes it more important than ever to bind the wounds of our nation and to bring together Americans from all walks of life. Recognizing that our diversity is a core strength of our nation, we must all come together as fellow patriots to solve our most serious challenges.

Leaders from across the public, private and nonprofit sectors need to collaborate to find meaningful solutions that create economic growth and greater opportunity for all.

America is best when we come together with clear leadership, expertise and the political will to take on difficult challenges and get things done. No one should ever doubt the strength and resilience of our country and our democracy.

JPMorgan Chase has a proud history of supporting our communities and our countries. Through your outstanding efforts, we have built a great company that will continue to thrive — as we continue to focus on helping to serve our clients and communities. We will also continue to help address the important public policy issues of the day and the underlying economic challenges throughout the world.

I’m optimistic about America’s future and the role our company will continue to play as we help the nation address our challenges and move forward together. Jamie

Here Is What President-Elect Donald Trump Wants To Do In His First 100 Days

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NPR:

What follows is my 100-day action plan to Make America Great Again. It is a contract between myself and the American voter — and begins with restoring honesty, accountability and change to Washington

Therefore, on the first day of my term of office, my administration will immediately pursue the following six measures to clean up the corruption and special interest collusion in Washington, DC:

* FIRST, propose a Constitutional Amendment to impose term limits on all members of Congress;

* SECOND, a hiring freeze on all federal employees to reduce federal workforce through attrition (exempting military, public safety, and public health);

* THIRD, a requirement that for every new federal regulation, two existing regulations must be eliminated;

* FOURTH, a 5 year-ban on White House and Congressional officials becoming lobbyists after they leave government service;

* FIFTH, a lifetime ban on White House officials lobbying on behalf of a foreign government;

* SIXTH, a complete ban on foreign lobbyists raising money for American elections.

On the same day, I will begin taking the following 7 actions to protect American workers:

* FIRST, I will announce my intention to renegotiate NAFTA or withdraw from the deal under Article 2205

* SECOND, I will announce our withdrawal from the Trans-Pacific Partnership

* THIRD, I will direct my Secretary of the Treasury to label China a currency manipulator

* FOURTH, I will direct the Secretary of Commerce and U.S. Trade Representative to identify all foreign trading abuses that unfairly impact American workers and direct them to use every tool under American and international law to end those abuses immediately

* FIFTH, I will lift the restrictions on the production of $50 trillion dollars’ worth of job-producing American energy reserves, including shale, oil, natural gas and clean coal.

* SIXTH, lift the Obama-Clinton roadblocks and allow vital energy infrastructure projects, like the Keystone Pipeline, to move forward

* SEVENTH, cancel billions in payments to U.N. climate change programs and use the money to fix America’s water and environmental infrastructure

Additionally, on the first day, I will take the following five actions to restore security and the constitutional rule of law:

* FIRST, cancel every unconstitutional executive action, memorandum and order issued by President Obama

* SECOND, begin the process of selecting a replacement for Justice Scalia from one of the 20 judges on my list, who will uphold and defend the Constitution of the United States

* THIRD, cancel all federal funding to Sanctuary Cities

* FOURTH, begin removing the more than 2 million criminal illegal immigrants from the country and cancel visas to foreign countries that won’t take them back

* FIFTH, suspend immigration from terror-prone regions where vetting cannot safely occur. All vetting of people coming into our country will be considered extreme vetting.

Next, I will work with Congress to introduce the following broader legislative measures and fight for their passage within the first 100 days of my Administration:

  1. Middle Class Tax Relief And Simplification Act. An economic plan designed to grow the economy 4% per year and create at least 25 million new jobs through massive tax reduction and simplification, in combination with trade reform, regulatory relief, and lifting the restrictions on American energy. The largest tax reductions are for the middle class. A middle-class family with 2 children will get a 35% tax cut. The current number of brackets will be reduced from 7 to 3, and tax forms will likewise be greatly simplified. The business rate will be lowered from 35 to 15 percent, and the trillions of dollars of American corporate money overseas can now be brought back at a 10 percent rate.
  2. End The Offshoring Act. Establishes tariffs to discourage companies from laying off their workers in order to relocate in other countries and ship their products back to the U.S. tax-free.
  3. American Energy & Infrastructure Act. Leverages public-private partnerships, and private investments through tax incentives, to spur $1 trillion in infrastructure investment over 10 years. It is revenue neutral.
  4. School Choice And Education Opportunity Act. Redirects education dollars to give parents the right to send their kid to the public, private, charter, magnet, religious or home school of their choice. Ends common core, brings education supervision to local communities. It expands vocational and technical education, and make 2 and 4-year college more affordable.
  5. Repeal and Replace Obamacare Act. Fully repeals Obamacare and replaces it with Health Savings Accounts, the ability to purchase health insurance across state lines, and lets states manage Medicaid funds. Reforms will also include cutting the red tape at the FDA: there are over 4,000 drugs awaiting approval, and we especially want to speed the approval of life-saving medications.
  6. Affordable Childcare and Eldercare Act. Allows Americans to deduct childcare and elder care from their taxes, incentivizes employers to provide on-side childcare services, and creates tax-free Dependent Care Savings Accounts for both young and elderly dependents, with matching contributions for low-income families.
  7. End Illegal Immigration Act Fully-funds the construction of a wall on our southern border with the full understanding that the country Mexico will be reimbursing the United States for the full cost of such wall; establishes a 2-year mandatory minimum federal prison sentence for illegally re-entering the U.S. after a previous deportation, and a 5-year mandatory minimum for illegally re-entering for those with felony convictions, multiple misdemeanor convictions or two or more prior deportations; also reforms visa rules to enhance penalties for overstaying and to ensure open jobs are offered to American workers first.
  8. Restoring Community Safety Act. Reduces surging crime, drugs and violence by creating a Task Force On Violent Crime and increasing funding for programs that train and assist local police; increases resources for federal law enforcement agencies and federal prosecutors to dismantle criminal gangs and put violent offenders behind bars.
  9. Restoring National Security Act. Rebuilds our military by eliminating the defense sequester and expanding military investment; provides Veterans with the ability to receive public VA treatment or attend the private doctor of their choice; protects our vital infrastructure from cyber-attack; establishes new screening procedures for immigration to ensure those who are admitted to our country support our people and our values
  10. Clean up Corruption in Washington Act. Enacts new ethics reforms to Drain the Swamp and reduce the corrupting influence of special interests on our politics.

California votes in favor of overturning Citizens United by passing Proposition 59

Voters approved Proposition 59, which instructs elected officials to overturn the U.S. Supreme Court’s landmark Citizens United decision that dramatically altered the way money can be spent on politics.

The Associated Press projects the ballot measure passed with 52.3% of the vote.

Proposition 59 is not legally binding and includes no punishment for California’s senators and representatives. While much of the delegation supports overturning the decision, some members have indicated they won’t comply with the voter instruction. Read on.

Supreme Court Probes Whether Miami Can Sue Banks Over Foreclosure Crisis

Should Bank of America and Wells Fargo be on the hook for potentially billions of dollars in tax revenue Miami and other cities lost after property values plunged in minority neighborhoods due to shoddy lending practices and foreclosures?

And if so, why can’t Miami sue for lost tourist revenue? Sales taxes? Why can’t the corner store sue the banks for the money its customers stopped spending when they lost their homes? Where does the chain of causation end?

Those were among the tough questions U.S. Supreme Court justices asked today in oral arguments overBank of America v. Miami, which tests the limits of who can sue under the expansive Fair Housing Act.

Read on.

PHH fined $28 million by NYFDS for shady mortgage servicing

When PHH reported its third quarter earnings on Tuesday, the company made several disclosures, including that it planned to exit its private-label origination business, that it planned to sell off its Ginnie Mae mortgage servicing rights portfolio, and that it was facing disciplinary action from the New York Department of Financial Services.

The company didn’t provide any details on the nature of the disciplinary action, the reason behind it, or an expected timeline, other than to say it anticipated the matter being resolved “in the fourth quarter.”

As it turned out, the wait to find out what exactly the situation with the NYDFS was proved to be exactly one day, as the NYDFS announced Wednesday that it is fining PHH $28 million for what it calls “shoddy mortgage origination and servicing practices.”

In announcing the fine, the NYDFS provided a list of the violations that PHH committed, and it reads like a laundry list of some of the same practices that gave the mortgage business a bad name before, during and after the financial crisis.

According to the NYDFS, a series of investigations uncovered “persistent shortcomings” in PHH’s mortgage origination and servicing practices, including discrepancies in how mortgage foreclosures were documented and processed.

Read on.