JPMorgan Chase (JPM)

JPMorgan Chase (JPM)

Postby winston » Thu Jul 17, 2008 8:44 pm

JPMorgan earnings fall, beat forecast

JPMorgan Chase, the third-largest US bank, said that second-quarter profit fell, hurt by hurt by US$1.1 billion (HK$8.58 billion) in write-downs.

Net income fell to US$2 billion, or 54 US cents per share, from US$4.2 billion, or US$1.20 a share, a year earlier.

The earnings beat analysts' consensus forecast of 44 US cents a share.

REUTERS
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Re: JPMorgan Chase JPM

Postby kennynah » Thu Jul 17, 2008 8:51 pm

when mkt wans to run, lower revenue will also be ignored :lol:
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Re: JPMorgan Chase JPM

Postby millionairemind » Tue Aug 12, 2008 1:51 pm

JPMorgan Loses $1.5 Billion Since July on Debt Prices (Update1)

By Cathy Chan

Aug. 12 (Bloomberg) -- JPMorgan Chase & Co. will write down the value of mortgage-backed assets by at least $1.5 billion this quarter after credit-market turmoil and the U.S. housing slump deepened.

Trading conditions ``have substantially deteriorated'' since July and ``sharply widened'' spreads on mortgage-backed securities and loans caused losses, the second-biggest U.S. bank by market value said in a regulatory filing late yesterday.
http://www.bloomberg.com/apps/news?pid= ... refer=home

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Re: JPMorgan Chase JPM

Postby millionairemind » Tue Aug 26, 2008 10:25 am

Fannie-Freddie crisis spreads
By Saskia Scholtes and Francesco Guerrera in New York
Published: August 25 2008 18:24 | Last updated: August 26 2008 02:49

The crisis gripping Fannie Mae and Freddie Mac spread across the financial system on Monday as JPMorgan Chase warned of a possible $600m (£323m) loss from its holdings of preferred shares in the two mortgage financing groups.

JPMorgan said it would write down the value of its $1.2bn of preferred shares in Fannie and Freddie by half.

Preferred shares are a hybrid of debt and equity and are attractive to investors because they pay interest above equivalent debt instruments.

No other bank has written down the value of its Fannie and Freddie preferred shares, and only a few have revealed their holdings. Philadelphia-based Sovereign said last week that it held more than $600m in Fannie and Freddie preferred stock.

In a regulatory filing, JPMorgan said that since June, the value of its preferred shares in Fannie and Freddie had “declined in value by approximately an aggregate $600m”.

The bank said that the precise amount of the losses would not be known until the end of the third quarter.

The value of preferred stock in Fannie and Freddie has tumbled to less than 50 cents on the dollar in recent weeks on fears a US Treasury rescue could wipe out holders of preferred as well as common stock.

The Treasury was granted powers late last month to extend its credit lines to Fannie and Freddie and invest in their debt and equity.

The JPMorgan news came after Freddie easily sold $2bn of short-term debt, helping to reassure investors that Freddie and Fannie still have access to fund their operations without a government rescue.

Freddie and Fannie rose 17.08 per cent and 3.8 per cent respectively, halting last week’s sell-off even as US indexes finished sharply lower on Monday. Fannie and Freddie both lost about 40 per cent of their value last week.

Freddie’s auction of $2bn in three- and six-month bills drew strong demand as buyers were attracted by higher rates.
Copyright The Financial Times Limited 2008
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Re: JPMorgan Chase JPM

Postby kennynah » Fri Sep 26, 2008 11:28 am

JPMorgan acquires Washington Mutual deposits for about $1.9 Bln; announces $8 Bln common stock offering - Update
9/25/2008 10:26 PM ET


(RTTNews) - JPMorgan Chase & Co. (JPM: News ) said late Thursday that it has acquired all deposits, assets and certain liabilities of Washington Mutual Inc. (WM: News ) for about $1.9 billion from the Federal Deposit Insurance Corporation, or FDIC, effective immediately. However, the transaction excludes the struggling save and thrift's senior unsecured debt, subordinated debt and preferred stock. Separately, JPMorgan said it intends to offer $8 billion of its common stock to the public.

Federal regulators seized Washington Mutual, the latest victim of the credit crunch, and struck a deal to sell the bulk of its operations to JPMorgan, in what is considered as the largest bank failure in U.S. history.

The Seattle-based Washington Mutual, or WaMu, collapsed after its faced $19 billion of losses on soured mortgage loans and its credit rating was slashed, leaving it with insufficient liquidity to meet its obligations. The company failed to find any buyers after it was forced to put itself for sale.

JPMorgan noted that the acquisition expands its consumer branch network into California, Florida and Washington State and creates the second-largest branch network in the U.S. Through the deal, the company secures a foothold on the West Coast. The deal comes six months after JP Morgan agreed to acquire Bear Stearns Co., another victim of the credit crunch, as a buyer of last resort.

JPMorgan expects to incur pretax merger costs of about $1.5 billion while achieving annual pretax cost savings of about $1.5 billion by 2010, net of significant investments in the business. The acquisition is expected to be immediately accretive to JP Morgan's earnings and add more than $0.50 per share in 2009.

The bank intends to complete most systems integrations and rebranding by year-end 2010, closing less than 10% of branches in the combined network in overlapping markets.

In conjunction with this acquisition, JPMorgan said it will mark down the acquired loan portfolio by approximately $31 billion, which primarily represents the company's estimate of remaining credit losses related to the impaired loans. The company plans to raise additional capital in connection with this transaction to maintain its strong capital position.
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JPMorgan Chase JPM

Postby ishak » Fri Sep 26, 2008 9:52 pm

JPMorgan Chase & Co. Prices $10 Billion Capital Raise
Friday September 26, 9:40 am ET

NEW YORK--(BUSINESS WIRE)-- JPMorgan Chase & Co. today announced that it priced a $10 billion offering of approximately 246.9 million shares of its common stock at $40.50 per share. J.P. Morgan Securities Inc. served as sole bookrunning manager and underwriter for the transaction. The underwriter will have a 30-day option to purchase approximately up to an additional 37.0 million shares of common stock from the company to cover over-allotments. The closing is expected to occur on or about September 30, 2008.

JPMorgan Chase & Co. (NYSE: JPM - News) is a leading global financial services firm with assets of $2.0 trillion and operations in more than 60 countries. The firm is a leader in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management, and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase serves millions of consumers in the United States and many of the world’s most prominent corporate, institutional and government clients under its JPMorgan and Chase brands. Information about the firm is available at http://www.jpmorganchase.com.

This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities. A registration statement relating to these securities has been filed and is effective. A written prospectus for the offering meeting the requirements of Section 10 of the Securities Act of 1933 (other than a free writing prospectus as defined in Securities Act Rule 405) may be obtained from J.P. Morgan Securities Inc., 4 Chase Metrotech Center, CS Level, Brooklyn, NY 11245 Attention: Chase Distribution & Support Service Northeast Statement Processing.
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JP Morgan JPM

Postby kennynah » Wed Oct 15, 2008 11:43 pm

JPMorgan Chase Q3 profit plummets; cautions reduced earnings for few quarters - Update 2
10/15/2008 9:38 AM ET


Image

(RTTNews) - Wednesday, global financial services firm JPMorgan Chase & Co. (JPM: News ) reported a third-quarter profit that plunged 84% from the year-ago period, along with a drop in revenues. The company noted that the decline was driven by markdowns on mortgage trading positions and leveraged loans, and higher credit costs due to continued deterioration in its home-lending portfolio. However, the results exceeded analysts' expectations of a loss for the quarter. Additionally, the company noted that it is reasonable to expect reduced earnings for the next few quarters due to the turbulent economic environment.

Among others in the industry, Bank of America Corp. (BAC: News ) last week reported a sharp decline in third-quarter profit as a 21% growth in revenue was offset by a significant increase in credit costs. The company also slashed its quarterly dividend by 50% and revealed a $10 billion stock sale to raise capital to achieve an 8% Tier 1 capital ratio.

New York-based JPMorgan reported net income of $527 million or $0.11 per share, a decline from $3.373 billion or $0.97 per share reported in the third quarter of 2007.

On average, 13 analysts polled by First Call/Thomson Financial expected the company to report a loss of $0.21 per share for the quarter.

The recently concluded quarter results include a charge of $1.2 billion to conform loan loss reserves and an extraordinary gain of $581 million related to the acquisition of Washington Mutual's banking operations, which closed on September 25. The company noted that results included estimated losses of $640 million for Washington Mutual merger-related items.

The company reported net markdowns of $3.6 billion due to mortgage-related positions and leveraged lending exposures in the Investment Bank. Other significant after-tax items include $927 million benefit from reduced deferred tax liabilities, $642 million loss on Fannie Mae and Freddie Mac preferred securities and $248 million charge related to offer to repurchase auction-rate securities.
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Re: JPMorgan Chase JPM

Postby millionairemind » Sat Nov 01, 2008 10:17 am

November 1, 2008, 7.45 am (Singapore time)

JPMorgan halts foreclosures, modifies mortgages

NEW YORK - JPMorgan Chase & Co, the nation's largest bank and one of its biggest mortgage lenders, temporarily halted foreclosures on Friday and offered to renegotiate a swathe of mortgages.

The global credit crisis, which began with sub-prime mortgages, increasingly appears to be affecting a wider range of consumer loans and, according to a report published by First American CoreLogic on Friday, nearly one in five US mortgage borrowers now owes more on the loan than their home is worth.

JPMorgan has avoided the large writedowns and credit losses posted by rival banks because it has limited exposure to the riskier classes of mortgages, such as sub-prime loans.

But when the bank acquired failed savings and loan Washington Mutual in September, it inherited that bank's more toxic mortgages.

The expansion of the mortgage modification plan will target many of these mortgages, as well as prime mortgages held by JPMorgan that are also starting to show signs of deterioration.

'Prime mortgages, especially where there are pay-option ARMs involved, (are) becoming a broader issue,' said Charles Scharf, head of retail financial services at JPMorgan.

JPMorgan has about US$250 billion of prime mortgages and home equity loans, US$27 billion in sub-prime mortgages and about US$51 billion of 'option' adjustable-rate mortgages.

Other lenders have also had loan modification programs in place, including Washington Mutual and the former Countrywide Financial Corp, which was acquired in July by Bank of America Corp.

Earlier this month, Bank of America agreed with 11 state attorneys general to offer relief to nearly 400,000 Countrywide customers with troubled mortgages, resulting in an expected US$8.4 billion of interest rate and principal reductions.

Wells Fargo & Co and Citigroup, two other major mortgage lenders, did not immediately return requests for comment on whether they plan expanded loan modification programs.

As part of JPMorgan's effort, expected to last about 90 days, the bank will hire loan counsellors and introduce alternatives to existing mortgage agreements. During this period, the bank will not put any additional loans into foreclosure.

JPMorgan expects to renegotiate US$70 billion of mortgages over two years, in addition to US$40 billion held by 250,000 borrowers since early last year.

The program covers borrowers who live in their homes and who 'show a willingness to pay', the bank said.

Mr Scharf said JPMorgan will also work with homeowners who are current on payments, given that modification programs started once customers have missed payments are 'very often too late to help'.

Most of the troubled mortgages are in regions where house prices have fallen and unemployment is rising, he said, but the program will be open to all customers.

'We are doing this because we think it's the right thing to do,' Mr Scharf added. -- REUTERS
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Disclaimer - The author may at times own some of the stocks mentioned in this forum. All discussions are NOT to be construed as buy/sell recommendations. Readers are advised to do their own research and analysis.
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Re: JP Morgan JPM

Postby iam802 » Wed Nov 05, 2008 2:04 am

JPMorgan Closes Proprietary Trading Desk, Financial News Says

http://www.bloomberg.com/apps/news?pid= ... refer=home


Nov. 4 (Bloomberg) -- JPMorgan Chase & Co., the largest U.S. bank, is shutting its global proprietary trading business and reassigning its top traders among other divisions, Financial News reported today.

The unit's staff will be placed within the New York-based bank's five main operational divisions, the news service reported, citing an internal employee memo. Some jobs may be eliminated, particularly in the back office, Financial News reported, citing an unidentified person familiar with the bank.

JPMorgan will fold the proprietary trading unit into the other divisions along asset-class lines, the news service said.

Most traders are expected to find jobs in the bank, with equity teams placed in the global equities unit and fixed income absorbing credit employees, Financial News said.

A call to JPMorgan wasn't immediately returned.
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Re: JP Morgan JPM

Postby millionairemind » Mon Nov 17, 2008 8:47 am

Thousands of City workers axed in jobs bloodbath
JP Morgan, the US investment bank, is drawing up plans to axe thousands of jobs across its worldwide operations, The Sunday Telegraph can reveal.


By Mark Kleinman
Last Updated: 8:10PM GMT 16 Nov 2008

The move is likely to mean redundancy for hundreds of City workers, compounding the growing sense of crisis in London's financial services industry and the broader British economy.

People close to JP Morgan say it has begun consulting on the scale of job cuts but that it was likely to be on a comparable scale to those of rivals. In recent weeks, investment banks including Citigroup, Goldman Sachs and the former ABN Amro operations owned by Royal Bank of Scotland have embarked on new waves of redundancies, at the likely cost of thousands of City posts.

Both Citigroup and Goldman are letting about 10pc of their workforces go, a proportion which, if applied to JP Morgan, would result in more than 3,000 jobs being slashed around the world.

This week, fears about the accelerating rate of job cuts in Britain are likely to gather pace, with firms such as Wolseley, the plumbing and building services group, and Experian, the financial information provider, reporting earnings to the City.

People close to both companies said last night they would be announcing new cost reductions this week that will include job cuts, although the scale was unclear.

Tomorrow, the CBI will slash its forecasts for UK economic growth and outlining a picture of soaring unemployment in the UK over the next year.

Trading conditions across the economy are deteriorating, with John Lewis and Marks & Spencer understood to have endured tough weeks during November.

Last week, BT confirmed 10,000 job cuts, and companies across the banking, industrial and technology sectors outlined plans for thousands more.

The cuts prompted the British Chambers of Commerce to predict that unemployment could rise as high as 3.25m.

The bleak outlook has added a particular sense of urgency to negotiations between the Government and the major lending banks, which are being accused by small business groups of denying loans to healthy businesses and pushing them to the brink of collapse.

JP Morgan's cuts are likely to take place from the beginning of next year. JP Morgan does not publish details of staff numbers around the world, but as the headquarters of its European, Middle East and Africa operations, the extent of the jobs under threat in the City is likely to be substantial.

A spokesman for JP Morgan declined to comment. JP Morgan Cazenove, which employs 600 people in London, is understood not to form part of the review.
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