JPMorgan 1Q profit drops 70% as it readies for loan defaults

[Omaha Steve]

Source: AP

By KEN SWEET

NEW YORK (AP) — JPMorgan Chase said Tuesday that its first-quarter profit plunged nearly 70%, as the bank was forced to set aside billions of dollars to cover potential losses tied to the coronavirus pandemic.

The New York-based bank put $8.29 billion in reserve to cover potentially bad loans, up from $1.5 billion last year. JPMorgan Chase is facing billions of dollars in losses shut down businesses across the country and put millions of Americans out of work, as borrowers who were in fine shape just weeks ago — ranging from individuals with credit cards to oil and gas companies — are now at risk of running out of money and defaulting on loans.

The last time JPMorgan had to set aside that amount of money to cover potentially bad loans was the first quarter of 2009 — in the depths of the Great Recession.

Chase, the nation’s largest bank by assets, is among the first of the major U.S. companies to describe the financial impact of the coronavirus pandemic, which has. It’s profit fell to $2.87 billion from $9.18 billion in the same period a year earlier. Wells Fargo, the nation’s largest mortgage lender, said profit fell 95% as it boosted bad loan reserves by $3.1 billion.



FILE - In this Aug. 16, 2019 file photo, the logo for JPMorgan Chase & Co. appears above a trading post on the floor of the New York Stock Exchange. JPMorgan Chase & Co. reports financial results on Tuesday, April 14, 2020. (AP Photo/Richard Drew, File)


Read more: https://apnews.com/a668ceeddeba7f38541296869c2b0f51

[bucolic_frolic]

1. Big Fish eat little fish

Chase devoured Manny Hanny as I recall ... among others

[LiberalArkie]

2. FUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUCK

[Under The Radar]

3. This announcement and the Dow is up 2.5% today?

17 million unemployment (so far), defaults rates in the 30’s expected on credit card debt, student loans and automobiles loans.
Something is bubbling under the surface....

[melm00se]

10. it says to me

that the bad news is already baked into the current stock prices.

[Steelrolled]

12. They are still making money, just not as much.

Better than losing money, which what was happening in 2009.

Edit to add: The other thing occurring is that the coronavirus pandemic outlook is improving.

[durablend]

4. Watch them start jacking up credit card interest rates

Assuming they don't mass-close accounts.

[WestCoastYellowDog]

5. Lolz ... no sympathy here

[kysrsoze]

6. So glad we dumped this shitty company and went to Logix. I have no sympathy for them.

[Politicub]

7. Too big to fail? Or, too stupid to run a company competently?

These companies that are crying poor mouth had years to think of contingency plans and to build a cushion for downturns -- even big downturns like the one we're experiencing now. They learned nothing from 2008 other than how to stick their hand out and get government to fill it with taxpayer dollars.

[mathematic]

9. How is JPMorgan being run incompetently?

Or, for that matter, how are they "crying poor"?

This really seems like you're reacting to a story that doesn't exist.

[Progressive Jones]

8. Boo Hoo. Everybody is getting a haircut. nt

[marble falls]

11. An accounting move to enable them a place at the table for some of that sweet, sweet ...

stimulus pork barrel.

Screw the Ponzi scheme these crooks and liar have put themselves on the line for.

At their richest what single average American have they ever "bailed" out?

[DEbluedude]

13. ""It's profit fell to $2.87 billion from $9.18 billion in the same period a year earlier..."

Boo Fuckin Hoo.

[aggiesal]

14. F#&k Chase ...

They tried to steal my home in 2010.
Sued them in 2012 and finally settled in 2017. I was able to keep my house.
But I had to sit for an 8 Hrs. deposition in front of the Chase attorney.
When that was over, after I pointed out where they made mistakes, the lawyer
asked me, "... What would it take to settle?"

Know every time I buy a mortgage, I tell the servicer never sell it to Chase,
or I will re-fi immediately.

I tried to get a clause put in the mortgage contract that says if Chase buys this
mortgage, the mortgage becomes null and void, and I own the house.
Nobody would give me a mortgage if I left that clause in.

I then asked, if I could have a clause that if the mortgage got sold to Chase,
I should have the right of first refusal for 90 days. Which means that I have the
right to match Chase's offer, and I'd have 90 days to come up with the money.
Again, nobody would give me a mortgage with the clause in the contract.

This was based on Washington Mutual's selling my original mortgage for 10% to
Chase during the mortgage meltdown.
Why were we not allowed to purchase the mortgage at 10%?