Replies to post #109470 on Lehman Brothers Financial SA (LEHNQ)

[footballref-8541]

This seems to be moving at lightning speed for court hearings. Are we waiting on a specific date or something?

[cottonisking]

Relax, JPMCB are the CTs' Registered Agent:

JPMorgan (JPM) to Redeem $1.5B Worth of TruPS - Analyst Blog
Zacks Equity Research
March 2, 2015
On Friday, JPMorgan Chase & Co. JPM announced the redemption of trust preferred securities (TruPS) worth $1.5 billion. The securities to be fully redeemed include 6.70% Capital Securities, Series CC. The redemption is scheduled to take place on Apr 2, 2015.

The redemption🤑 will be in accordance with the voluntary redemption provisions present in the documents relating to the TruPS. Further, JPMorgan has fixed the price of redemption of securities at 100% of the liquidation amount. The company will pay this redemption price along with the distribution outstanding and due on the securities 🤑up to the date of redemption to its shareholders. JPMorgan further added that it will utilize the existing available cash to fund these redemptions.

Back in May 2013, JPMorgan redeemed about $5 billion in TruPS. The redemption included securities of series J, K, L, N, P, S and X worth $4.8 billion.

In 🤑Jul 2012, JPMorgan redeemed about $9 billion in TruPS. The redemption included $5.7 billion worth of capital securities related to different series and Fixed-to-Floating Rate Capital Securities worth $3.3 billion.

In 🤑Apr 2012, JPMorgan redeemed about $425 million in TruPS, which included the redemption of $17 million worth 7.20% preferred securities issued by BANK ONE Capital VI.

TruPS redemption is viewed as a positive step for the banks, enabling them to🤑 bring down interest expenses, as these securities demand higher rates than other securities and often the banks replace TruPS with equity or other low-cost debt. Further, according to the Dodd-Frank Act, banks are no longer allowed to consider these securities as regulatory capital as of 2013.

Currently, JPMorgan carries a Zacks Rank #3 (Hold). Some better-ranked finance stocks worth considering include MidWest One Financial Group, Inc. MOFG and Heartland Financial USA, Inc. HTLF with a Zacks Rank #1 (Strong Buy), while Northern Trust Corp. NTRS carries a Zacks Rank #2 (Buy).


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

JPMORGAN CHASE (JPM): Free Stock Analysis Report

NORTHERN TRUST (NTRS): Free Stock Analysis Report

MIDWESTONE FINL (MOFG): Free Stock Analysis Report

HEARTLAND FINCL (HTLF): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research


View comments