U.S. Banks Gain as J.P. Morgan (JPM) Gains Regulator Favor (GS) (MS) (WFC)

U.S. banks are getting a boost Thursday morning following earlier news that J.P. Morgan (NYSE: JPM) came to an agreement in principle with the U.S. Securities and Exchange Commission (SEC) over buyback plans covering up to $3 billion in common stock.

Buried in a 10-Q, the agreement with the SEC covers two investigations related to mortgage-backed securities (MBS) that J.P.Morgan handled following the acquisition of Bear Stearns in 2008. One related to disclosures in a single MBS deal, while the other related to loan originator settlement claims at Bear Stearns.

The agreement in principle is subject to court and SEC approval.

In addition to the SEC, J.P. Morgan won Federal Reserve approval to reinstate the $ 3 billion buyback plan. The move comes following J.P. Morgan's suspension of a fresh $15 billion repurchase program in May, after it disclosed massive trading losses in its CIO unit. To-date, those losses amounted to about $6.2 billion.

Earlier in the year, J.P. Morgan CEO Jamie Dimon said he intended to resume buybacks in the first-quarter of 2013, which looks like it will happen based on the data available.

J.P. Morgan stock is up about 2 percent early, while Bank of America (NYSE: BAC), Citigroup (NYSE: C), Wells Fargo (NYSE: WFC), Goldman Sachs (NYSE: GS), Morgan Stanley (NYSE: MS), and others are also ticking higher.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Trump Media & Technology Group (DJT) send letter to Nasdaq over “naked” short selling
• MYT Netherlands Parent B.V. (MYTE) Announces Preliminary Third Quarter Results – Double-Digit Topline Growth Significantly Improved Profitability
• Bio-Path Holdings (BPTH) Announces 375K Share Offering at $3.225/sh