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Related: About this forumChilling Thing Jamie Dimon just Said about the Economy
Chilling Thing Jamie Dimon just Said about the Economy
by Wolf Richter January 14, 2016
[font color="blue"]Hopefully Its not the beginning of something really bad.[/font]
JP Morgan Chase is a money-making machine. Profits in the fourth quarter rose 10% to $5.4 billion, bringing the total for 2015 to a record $24.4 billion. But it was a mixed bag of the good, the bad, and the rotting of the type we havent seen in six years.
So revenues fell 2% for the year (under GAAP), which is to be expected, given that revenues of S&P 500 companies have fallen for four quarters in a row, according to FactSet. Its been the worst revenue recession since 2009. Its tough out there.
Total assets at the bank fell 3% to $2.35 trillion during the quarter, which CFO Marianne Lake explained this way during the earnings call this morning (transcript via Seeking Alpha): The balance sheet was down in part purposefully and a little bit because of market conditions at the year end.
But JP Morgan did what American companies do so well: it cut costs to more than make up for the revenue declines.
This cost cutting included over 5,000 layoffs across its four major business units corporate and investment banking, consumer and community banking, asset management and commercial banking with the first 1,000 folks already gone by May 2015 when the layoffs were first reported. At the time, the bank announced it would also overhaul its 5,000-plus branches, with technology replacing some humans. .....................(more)
http://wolfstreet.com/2016/01/14/chilling-thing-jamie-dimon-jpmorgan-just-said-about-the-economy/
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Chilling Thing Jamie Dimon just Said about the Economy (Original Post)
marmar
Jan 2016
OP
Proserpina
(2,352 posts)1. Translation: We're all gonna die!
The cows are coming home, and the chickens, and the swallows of Capistrano....
FreakinDJ
(17,644 posts)2. The Feds will be looking for a "Soft Landing"
No doubt the markets are trending downward any more.
leveymg
(36,418 posts)3. Say bye bye to brick and mortar retail banking. Going the way of Borders.