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Tag: JP Morgan

  • Tesla Countersues JP Morgan, Claims Bank Sought ‘Windfall’ After Musk Tweet

    Tesla Countersues JP Morgan, Claims Bank Sought ‘Windfall’ After Musk Tweet

    Tesla Inc on Monday fought back against JPMorgan Chase & Co over a disputed bond contract, countersuing the bank for seeking a “windfall” following Elon Musk’s notorious 2018 tweet that he might take his electric car company private.

    In a filing in Manhattan federal court, Tesla accused JPMorgan of “bad faith and avarice” for demanding $162.2 million after the bank had unilaterally changed the terms of warrants it received when Tesla sold convertible bonds in 2014.

    “JP Morgan pressed its exorbitant demand as an act of retaliation against Tesla both for it having passed over JPMorgan in major business deals and out of senior JPMorgan executives’ animus toward Mr. Musk,” Tesla said.

    By changing the terms of the warrants, JPMorgan “dealt itself a pure windfall” after receiving a “multibillion-dollar payout” from Tesla’s soaring share price, Tesla added.

    Musk is Tesla’s chief executive, and according to Forbes, is the world’s richest person.

    JPMorgan spokesman Brian Marchiony said in an email: “There is no merit to their claim. This comes down to fulfilling contractual obligations.”

    The countersuit escalates the battle between the largest U.S. bank and world’s most valuable car company, which have done little business with each other since the disputed contract.

    Warrants give holders the right to buy company stock at a set “strike” price and date.

    In its Nov. 15 lawsuit, JPMorgan said the Tesla warrants let it lower the strike price to counteract any economic impact from “significant corporate transactions” involving that company.

    JPMorgan said Musk’s Aug. 7, 2018 tweet that he might take Tesla private and had “funding secured,” followed by his reversing course 17 days later, was such a transaction because it made Tesla’s share price more volatile.

    The bank accused Tesla of defaulting because it failed to hand over shares or cash when the warrants expired in June and July 2021, by which time Tesla’s share price had risen about 10-fold.

    Musk’s tweets resulted in a U.S. Securities and Exchange Commission civil lawsuit. It ended with Musk giving up Tesla’s chairmanship, and he and Tesla each being fined $20 million.

    Tesla’s lawsuit seeks unspecified damages.

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  • J.P. Morgan Opens Crypto Fund Access to All Wealth Clients

    J.P. Morgan Opens Crypto Fund Access to All Wealth Clients

    J.P. Morgan has reportedly allowed all of its wealth management clients to access cryptocurrencies via funds.

    J.P. Morgan’s wealth management clients gained access to five crypto products, effective July 19.

    Four of the products are from Grayscale Investments and one is from Osprey funds.

    According to the memo, J.P Morgan advisors will only execute unsolicited crypto trades for clients, including those who use the bank’s Chase trading app.

    J.P. Morgan is the latest U.S. bank to ramp up its digital currency offering following global custodian BNY Mellon’s entry into a crypto consortium that includes State Street and six other banks.

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  • J.P. Morgan Invests In Indian Fintech

    J.P. Morgan Invests In Indian Fintech

    J.P. Morgan has invested in a fintech player in the business payments based in India.  To help its clients experience clearer electronic invoice presentation and quicker reconciliation, the U.S. financial group invested an undisclosed sum in India-based Global PayEx, a player in the Electronics Invoice Presentment & Payment (EIPP) and business-to-business (B2B) payments space.

    «At J.P. Morgan, we continue to invest in innovation to help our clients optimize and simplify their payment operations,» said Sridhar Kanthadai, Head of Wholesale Payments for the Asia Pacific at J.P. Morgan in a media statement on Monday.

    The investment by J.P. Morgan extends the fintech’s footprint in the Far East, Middle East, Europe, and the United States, said Brij Sharma, CEO, Global PayEx. Its cloud-based platform – Freepay – facilitates the electronic sharing of invoices, handling of payments and comprehensive management of transaction information between B2B buyers and sellers.

    Operational for more than three years, Freepay improves working capital efficiency by digitizing all processes in the order-to-cash cycle such as invoicing, dynamic credit and trade terms support, credit/debit notes, instantly applicable cash discounts, full document support for payment decisions including ePoD, and analytics-driven dunning.

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  • Hong Kong home prices could begin falling next year, says JP Morgan

    Hong Kong home prices could begin falling next year, says JP Morgan

    Hong Kong home prices could fall by 5 per cent to 10 per cent over the next three years, according to JP Morgan, which warned of the risks of an economic slowdown in the city.

    A slowdown marked by falling retail sales and a softening mainland economy would adversely affect home purchasing power and buying desire, said  Cusson Leung, head of conglomerates and property research at JP Morgan.

    Leung told a press briefing on Friday there were a number of factors that could affect the performance of Hong Kong property market, such as credit leverage and capital flow, while adding that he did not see any immediate risk of over-leveraging of real estate or capital outflow.

    The unemployment rate is expected to rise

    However, he raised concerns over a potential slowdown of the city’s economy, linked to the risk of further decline in the mainland China economy.

    “Retail sales are declining and international brands are talking about network consolidation in Hong Kong,” he said. “The unemployment rate is expected to rise.”

    Leung said the impact of the negative factors would become more obvious early next year. “2016 will be a more difficult year when compared with 2015. Home prices could see a decline,” he said.

    While saying that JP Morgan had not yet reached a house view on the degree of home price falls, he said it was possible prices could drop by 5 per cent to 10 per cent a year over the next three years, starting from next year.

    Hong Kong home prices rose 13.5 per cent last year and 8 per cent in the first half of this year, according to the data from the Rating and Valuation Department.

    Leung said home prices were unlikely to see a sharp plunge of 30 per cent in a year unless a crisis or really bad unexpected news hit the market.

    Residential transactions in Hong Kong last month plunged 27.8 per cent month on month to 3,896, according to Land Registry data released on Wednesday, prompting some analysts to predict a modest decline in home prices in the second half of this year. Alva To, senior managing director of real estate services firm DTZ/Cushman & Wakefield, predicted home prices could see a decline of 5 per cent to 10 per cent from current levels this year.

    Leung, however, expects prices to remain stable this year, but begin falling next year.

    Centaline Property Agency said its secondary home price index hit a record high of 146.78 yesterday, up 0.91 per cent week on week.

    The decline in property transactions in the past two months was more related to a slowdown in project releases than the wealth effect from the stock market crash, Leung said.

    His comments came a day after Sun Hung Kai Properties sold out all 328 flats at phase two of its Century Link development in Tung Chung.

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