JPMorgan Profit Rises 76% on Cut in Bad-Loan Reserve

[TomClash]

Source: Bloomberg

July 15 (Bloomberg) -- JPMorgan Chase & Co., the second- biggest U.S. bank by assets, said profit rose 76 percent, more than analysts estimated, as a reduction in provisions for soured mortgages and credit-card loans buoyed results.

Second-quarter net income climbed to $4.8 billion, or $1.09 a share, from $2.72 billion, or 28 cents, in the same period a year earlier and from $3.33 billion in the first quarter, the New York-based company said today in a statement. The per-share earnings compared with an average estimate for adjusted earnings of 71 cents projected by 22 analysts surveyed by Bloomberg.


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Problem Loans

Financial companies have recorded losses and writedowns of $1.79 trillion stemming from the U.S. housing crisis and the highest U.S. jobless rate in 26 years, according to data compiled by Bloomberg. The pace of new problem loans eased last quarter as the U.S. economy showed signs of recovery, even as the federal government withdraws support from financial markets.

Federal support for mortgage bonds and reduced interest rates helped JPMorgan, Goldman Sachs Group Inc., Bank of America and Citigroup rack up perfect records in their trading businesses between January and March, when they reported gains for every day in the period. Weaker-than-expected employment, the European debt crisis and reduced underwriting volume dragged down investment-banking revenue in the second quarter.

“What was remarkable about the first quarter is the consistency, that all of the major banks made money every single day,” said Moshe Orenbuch, an analyst at Credit Suisse Group AG in New York. “That was both unusual and not likely to be repeated.”

Read more: http://noir.bloomberg.com/apps/news?pid=20601087&sid=aYgWia5loDI4&pos=1

[dipsydoodle]

1. They own 28% of BP.

You know the one : the "British" company. :sarcasm:.

[UpInArms]

2. money for nothin' ~ get your chicks for free!

how fun - these asswipes get their money for free - basically just printing it - and charge up to 30 percent to the consumer

if my biz had no hard costs, I'd be freakin' rich, too.

:puke:

[waronbanks]

3. Rise up America...

“What was remarkable about the first quarter is the consistency, that all of the major banks made money every single day,” said Moshe Orenbuch

No Mr Bankster...whats remarkable is that average Americans have not yet taken to the streets to put a stop to this corporate destruction of their nation, jobs and way of life. Aided and supported by a corrupt thoroughly government that has been completely taken over by corporate cash. As Dylan Ratigan asked that sleezy, slimey republican on his show...how do you create jobs when the people who are supposed to invest in our nation with innovation and technology are just stealing all the money?

It will happen. I hope these fucks enjoy their moment because I have a feeling the backlash is coming.

[Heywood J]

4. So the reason they made so much profit

is that they basically stopped saving for a rainy day, just after the largest bailout in US history. They know Uncle Sam will bail their asses out when they get into trouble, so why bother saving for it themselves.

Break these bastards into tiny, tiny regional pieces.