Wall Street divided on cryptocurrencies

The House of Morgan is divided over bitcoin.

While JPMorgan chief Jamie Dimon is so anti crypto that he even belittled his daughter’s trading bitcoin and told his traders if he found them trading cryptos they would be fired for stupidity.

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Yesterday’s IPOs could be tomorrow’s take out rewards

This year’s tech IPOs have had a spectacularly awful performance. Snapchat and Blue Apron just can’t get out of their own way.

Snap is down 60% from its 52 week high in early March a day after the first trade. Blue Apron is off 55% from its early July highs.

Snap has the distinction of being downgraded by Morgan Stanley, which underwrote the offering.

Both these stocks but especially Snap are suffering from the Twitter effect. The micro-blogging site came up with metrics other than revenue to show their early growth. The engagement numbers of monthly users and now daily users show how people use the service, but if you can’t bank engagement, Wall Street will let you know it’s not ok.

So Twitter is down 77% from its all-time high Nov. 2015, which may be the level Snap and Blue Apron do not wish to attain.

So how far do these stocks have to go before they get a buy-out offer from the Silicon Valley heavyweights? I’m sure Amazon may be looking at Blue Apron, while Google could see Snap as a relaunch of its failed Google+.

The template for this is Yahoo’s purchase of Tumblr or Facebook buying Instagram and basically making it the Snap for the masses.

So it’s the falling knife on these stocks, but there could be a big reward down the road.

Goldman may be running its own “Storage Wars”

How close are we to seeing Goldman Sachs CEO Lloyd Blankfein standing in front of storage unit telling perspective bidders, “You can just look in, don’t touch, don’t go in.”

That the mental image I have from a story moving Thursday morning of Goldman repossessing a 217-ft luxury yacht from a former (i assume) client down in Palm Beach, Fla., according to a WSJ.com story.

Goldman, Morgan Stanley and UBS wealth management units have been active in lending cash to their clients against some esoteric belongings, such as wine collections, art collections and equity portfolios.

These banks are pushing these loans for two very specific reasons. They have an existing relationship with the client and knows his asset holdings. The banks also keep more of the profits from these loans, since there are little broker fees or other charges against the loan.

Goldman’s private bank has quadrupled its overall lending balances since 2012 to $29 billion. Morgan Stanley wealth-loan balances are up 420% since 2012 to $74 billion, according to the article.

To get back to the yacht, the luxury boat is listed for $39.9 million, according to broker​. The outstanding balance of the loan owed to Goldman is roughly $28 million. So there is some wiggle room to haggle with Lloyd.

Prime Minister May signs EU divorce papers

British Prime Minister Theresa May signed the EU divorce papers on Tuesday.

Brexit has officially begun as foreign exchange response seems to be muted as both the pound and euro traded off slightly against the dollar. US equities and bonds were also nonplussed by the much-anticipated move by the Brits.

City of London bankers from US banks such as Goldman Sachs, Morgan Stanley and JPMorgan are still awaiting news whether they will be moving before March 29, 2019 to the continent in order to smoothly transition to servicing EU-based clients.

Now May has to deal with the Scots wanting independence to rejoin the EU.

The Wall St. bulls are on the run, look out.

Apologies for late post as I have computer problems.

Wall Street appears to be flexing its muscle again on the back of Donald Trump’s Presidential inauguration.

JPMorgan reported 4th quarter earnings this morning and knocked the cover off the ball.

Jamie Dimon’s management team just seems to fire on all cylinders, while Bank Of America and Wells Fargo missed analysts’ estimates on some very important metrics.

Morgan Stanley on Friday also announced 140 new managing directors.

The idea that dealmaking and less regulations will allow Wall Street to grow revenues and profits in 2017 has been goosing the stock prices of most bulge-bracket banks.

The bulls are running so either join them or get out of the way.