The Next Crisis:CEOs Plead With President,Congress

A group of CEOs met with President Barack Obama and Members of Congress Wednesday in an effort to educate them about what would happen if the nation defaults on its debt,a prospect that will be realised on October 17,if Congress doesn't raise the debt ceiling.Among those participating were Lloyd Blankfein of Goldman Sachs and Jamie Dimon of JP Morgan Chase.
They shouldn't use the US failing on its obligation to meet its debt as a cudgel,Mr.Blankfein said.There's no precedent for default.We really haven't seen this before,and I'm not anxious to be part of the process witnessing this.*
The CEOs had a grim feeling following their meeting with Republicans in Congress.Congress is completely out of touch with Wall Street and the general economy,according to Bloomberg TV contributor Dawn Kopecki.They have no idea how bad it would be if the nation defaults on its debt.Mortgage rates will start widening.You're not dealing with business school graduates down in Washington,D.C.,Ms.Kopecki said.
The debt ceiling issue is legislatively separate from the budget impasse that has shuttered the federal government for more than two days now.It is related,howvever,by the fact that some House Republicans intend to use it as a political tactic,just as they are using the government shutdown,regardless of the harm it causes.
The chaos partly reflects the internecine conflict going on within the Republican party between moderates and the far right;and,some say,the leadership style of a president who didn't negotiate enough early on.It's resulted in dysfunction on a grand scale.

Betting On Banking:Should You Invest in Chase and Citigroup

JP Morgan Chase reported earnings of 1.48 versus a consensus estimate of 1.16,and revenue of 24.37 billion dollars versus an estimate of 24.41 billion.We think that the numbers were good,in line,said Jason Goldberg,CFA,an analyst at Barclays.Mortgage results continue to be the story.Asset management and commercial banking also had a good quarter.
We have an overweight on the stock.We think you'll see several metrics in the right direction.They're growing the top and bottom lines.Not too bad.It is trading well below tangible book value.
The stock has outperformed the market and the sector since Jamie Dimon joined as CEO.It's certainly one of our favourites in 2013.We also like Citigroup and US Bank.
Gerard Cassidy of RBC Capital Markets thinks Citigroup is in a good position to obtain some capital return for shareholders.Their Q4 report as well as their reducing exposure to risky assets over the past 2-3 years will support their case with regulators.
JP Morgan Chase was at 46.14 in afterhours Wednesday trading,down 0.09;while Citigroup was at 41.85,down 0.17;and US Bank was at 32.70,down 0.39.
JP Morgan Chase(JPM),Citigroup(C),US Bank(USB)

Advisor:Moving From Market Pessimism-plus the nuanced view from Chase

Anticipation is the key word in the market today,according to Michael Yoshikami,CEO of YCMNET Advisors in Walnut Creek,California.The sentiment is so pessimistic,even meeting expectations will be seen as victory.I think analyst sentiment will shift to more positive.
Stock prices have been based on a catastrophic scenario.The news has been getting better.Europe might actually be stabilising.The economy is slowly recovering.
I think banks are beaten down right now.They're extraordinarily cheap.They have really deleveraged their balance sheet.I think they're poised for a rebound,Mr.Yoshikami noted.
JP Morgan Chase and Qualcomm are among Mr.Yoshikami's top picks.
Jamie Dimon,JP Morgan Chase CEO,thinks it's a mild recovery,but that it seems to be broadening.Charles Gasparino of Fox Business has a lot of respect for Mr.Dimon as being one of the smartest people on Wall Street.Although he's optimistic,there are a lot of hedges in Jamie Dimon's position.For example,although portrayed by the media as predicting a housing recovery in 2012,Mr.Dimon believes we still have a little ways more to go down in housing.With regard to the new financial regulations,although Mr.Dimon doesn't mind banks being required to put more capital aside,he feels the Dodd-Frank bill is squeezing a lot of business out of Wall Street,Fox Business analyst Charlie Gasparino points out.
JP Morgan Chase disappointed Wall Street with its recent Q4 earnings report,missing the Street's estimates.
JP Morgan Chase(JPM),Qualcomm(QCOM)