Jeff Manning, staff writer for The Oregonian newspaper, released a story Thursday, March 27, 2008, that claims the paper has come into possession of a copy of an internal memo from JP Morgan Chase (NYSE: JPM). According to The Oregonian article, which hints at unsavory or even fraudulent mortgage processing practices, the memo indicates that loan processors can (not should) use creative data entry to alter automated underwriting system results. The Oregonian writer entertains the "dark side" scenario in the tone of his article.That's a real convenient, time-tested ploy for selling newspapers. Kudos for his attempt.

However, representatives for Chase mortgage operations have dismissed the memo as nothing more than a strategic angle on automated process. While no one has actually come out to say they created the memo or why, the company allegedly admits that the document is genuine. I get no sense that anyone from the company who commented on the situation has anything to hide. In fact, company reps appear to be quite forthcoming on the matter.

Continue reading Oregon newspaper claims JP Morgan Chase memo of dubious intent

Oregon newspaper claims JP Morgan Chase memo of dubious intent originally appeared on BloggingStocks on Sat, 29 Mar 2008 16:40:00 EST. Please see our terms for use of feeds.

At a mere $276 million, celebrity talk-show host and entertainment billionaire Oprah Winfrey could afford to buy Bear Stearns (NYSE: BSC), which closed Tuesday at $5.91 per share and keeps on climbing to over $6.50 a share in morning trading. The story alone and the associated publicity would be worth at least that. Furthermore, she could at least make an offer and demand a meeting with the Federal Reserve Board to discuss the issue.

If her offer was rejected, she would still be able to generate millions of dollars of publicity and perhaps she might want to acquire the asset, in particular if the Fed is going to protect the acquirer from potential losses. She could really become an international mogul, the likes of which has not been seen. We all know that Oprah wants to do good. She is so giving, this could be the ultimate.

I could just see the headlines: Oprah Winfrey takes on JP Morgan Chase (NYSE: JPM) and the Federal Reserve to rescue John Q. Public.

Continue reading Bear Stearns going too cheap, Oprah Winfrey should buy it

Bear Stearns going too cheap, Oprah Winfrey should buy it originally appeared on BloggingStocks on Wed, 19 Mar 2008 14:52:00 EST. Please see our terms for use of feeds.

Is this just a case of greed causing blindness? If so why was it so contagious among some firms and not others?

It seems to me that the reported $2 per share purchase price that JP Morgan Chase (NYSE: JPM) is paying for Bear Stearns (NYSE: BSC) would not have been enough to buy the brand name last year, never mind the whole company. What we are witnessing is the strong (until JPM reports some surprise) taking advantage of the weak. It also exemplifies how bad the market is, that no other buyer has stepped in at these fire sale prices.

Continue reading Serious Money: Bear Stearns questions and curiosities

Serious Money: Bear Stearns questions and curiosities originally appeared on BloggingStocks on Mon, 17 Mar 2008 15:32:00 EST. Please see our terms for use of feeds.

SLM Corporation (NYSE: SLM), a leading provider of saving and paying for college programs, is recently down $1.91 to $44.36.

SLM says that the J.C. Flowers, Bank of America Corporation (NYSE: BAC), and JPMorgan Chase & Company (NYSE: JPM) buyers group does not expect to consummate the acquisition of SLM. SLM call option volume of 98,356 contracts compares to put volume of 68,654 contracts. SLM October option implied volatility was at 91 according to Track Data, suggesting larger price movements.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Option update: SLM Corp (SLM) volatility spikes as deal won't be completed originally appeared on BloggingStocks on Wed, 26 Sep 2007 16:34:00 EST. Please see our terms for use of feeds.