JPMorgan's net jumps 67 pct on investment banking

[Poboy]

JPMorgan's net jumps 67 pct on investment banking

April 13, 2011 8:52 AM ET.

By PALLAVI GOGOI

NEW YORK (AP) - JPMorgan Chase & Co. reported a 67 percent jump in first quarter earnings Wednesday on solid growth in investment banking fees and a drop in losses in its credit card portfolio.

The New York bank earned $5.6 billion, or $1.28 per share, compared with $3.3 billion, or 74 cents a share in the same period last year. The profits at JPMorgan, the first bank to report earnings, were way ahead of the $1.15 per share analysts surveyed by FactSet were expecting.

Revenue fell to $25.2 billion from $27.7 billion in the same period last year. The slump in real estate continued to weigh heavily on JPMorgan's results. The bank increased its provision for mortgage-related losses by $1.1 billion.

Jamie Dimon, the CEO of JPMorgan, said in a statement that the bank's mortgage losses were "extraordinarily high," adding: "Unfortunately, these losses will continue for a while."

JPMorgan Chase & Co.'s profits included $2 billion from reducing its credit card loan reserves. Delinquency fell among the bank's credit card customers, allowing JPMorgan to lower its estimates of future losses.

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The stronger than expected results sent JPMorgan's stock up 1.8 percent to $47.49 in pre-market trading. Other major banks also rose. Bank of America Corp. rose 1.3 percent to $13.63, and Citigroup Inc. rose 1.1 percent to $4.60.

http://money.msn.com/business-news/article.aspx?feed=AP&date=20110413&id=13304446

[marmar]

1. Nothing warms my heart quite like the thought of Banksters doing well.

Extreme :sarcasm:

[xchrom]

2. some one hand me my guillotine. nt

[Vinnie From Indy]

3. Making money when you get ZERO interest loans from the federal government

is really not very hard. That is even more true when you can borrow the money at 0% interest and then loan the money back to the federal government at 3%. Why not just give the SOB's the money directly?

[Yavin4]

9. Or Issue 21% Credit Cards

Don't take a MIT Finance PhD to figure it out.

[Travis_0004]

10. The Tarp money was repaid in 2009.

What affect does that have on the first quarter of 2011 profits?

[Vinnie From Indy]

11. Says who?

There is still much debate as to whether the "repayment" has actually occurred.

[Poboy]

12. I noticed you got no reply.

[Poboy]

13. still waiting.

[kenny blankenship]

14. Most TARP money - loans through the Treasury- have been paid back, BUT

they have been paid back by injections of money from the FED into the banks- so called Quantitative Easing. Paul has been largely paid back, thanks to the ease with Peter can be robbed. Precise figures for the Fed's QE activities are not available but figures derived from the general stats released by the Fed range into the region of 2 trillion dollars.

Much of the liquidity injections of QE phase one and two has gone straight into the stock market, fueling its meteoric rise from this time two years ago. In other words, the only response from the institution entrusted with the safe keeping of the currency and with ensuring that speculative bubbles don't destroy the economy of the United States is to try to reinflate the last speculative collapsed bubbles with vast new money, wished into existence without any reference to any expanded production. This free money isn't really free. It was "robbed from Peter" - that is from you and me.

You pay for this in the form of rising prices -noticed your food and fuel bills rising lately?- as the currency is debased. Now the goals of QE as announced by the Fed are twofold: first, to create excess liquidity in the banking system and encourage it to start lending, and secondly, to jam up the value of stocks (America's real piggybank, thanks to Fed policies) making stock owning households feel wealthier again, and thus making them more likely to spend in theory, which will then ignite the stalled economy. Note that the plan hinges on creating the subjective perception of being wealthier - not on objective increases in wages or salaries. Neither of the Fed's two goals has been met. People don't want to spend that much more money despite the fact that the stock market has been jammed higher in a steep run up over the past two years, and despite the fact that money is losing value while people hold it as cash. Believe it or not, the Fed was actually trying to create MORE inflation than it has managed to. Of course for the vast majority of folks, inflation at its current rate, much less even higher rates, makes them feel POORER, because they have no way of increasing their wages. And for the vast majority a 100% rise in the value of the DJIA in 24 mo.s means nothing because they don't own any significant piece of that action. For those people who haven't lost their jobs, hours and days worked per year (w/o vacation) are already at a maximum. Someone who works two jobs to get by in 3 job household can't just snap their fingers and add another paycheck to their week. At some point, one hopes that the importance of rising WAGES will start to sink into the heads at the Fed. The Fed was naturally not thinking of those people - they never do. They were targeting the behavior of upper middle class and above households who own significant wealth in paper assets. But those people have been overdosed on the Fed's cheap credit for so long they cannot take on more debt to spend and make the Fed's QE schemes work out. You could say they finally learned their lesson about credit card debt, which just raises the question why does the Fed want the class of people it considers the salt of the Earth, and the beating heart of the economy to take on MORE credit card/home equity debt?

[Poboy]

4. Dimon Gets 51% Pay Raise

April 8 (Bloomberg) -- JPMorgan Chase & Co. gave Chief Executive Officer Jamie Dimon a 51 percent raise in 2010 as the bank resumed paying cash bonuses following two years of pressure from regulators and lawmakers to curb compensation. Dimon’s $23 million compensation package makes him the highest-paid chief executive among the top six U.S. banks since 2007, according to the banks’ proxy statements. Bloomberg's Erik Schatzker reports. (Source: Bloomberg)

http://www.bloomberg.com/video/68484848/

[ixion]

5. Gee, when by all rights they should be bankrupt and out-of-business

Guess that daylight robbery they pulled off worked out pretty well for them. It's not hard when the 'cops' are in on it, though.

[Poboy]

6. Obama, Holder, and the useless investigative arm of congress :

[lonestarnot]

7. Fuckers fucking the fucked.

[NorthCarolina]

8. Wow, my JP Morgan Chase investment accounts sure didn't perform anywhere near that well. nt

[Poboy]

15. one more kick.