Mar 06

Nice that Chase has foreclosure.com Are they trying to tell you something.

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Chase
Highlights from JPMorgan Chase’s ongoing efforts to improve our economy’s health. … Please contact us if you need assistance with your Chase accounts. …
http://www.foreclosure.com

Feb 26

Dimon Decries Washington?s Treatment of Banks

Jamie Dimon, the chief executive of JPMorgan Chase, says he believes Washington has become increasingly erratic and unfair in its treatment of the banks over the last few months, and he now has some regrets about participating in the government?s Troubled Asset Relief Program.
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?F.D.I.C. is going to cost us a lot of money. TARP cost us a lot of money. This bank tax, my first reaction was, ?That will cost us a lot of money,?? Mr. Dimon said Thursday at the bank?s annual Investor Day conference in New York. ?I think we are getting into the capricious, arbitrary and punitive behavior.?

Mr. Dimon said he did not know whether he would have taken the $25 billion that the government lent to JPMorgan during the 2008 financial crisis to bolster its capital if he knew then how troublesome the TARP money would be for the bank.

?The mistake was we let the government and the politicians not differentiate between irresponsible companies and prudent companies, from irresponsible, imprudent, and everybody got lumped together in the same boat,? Mr. Dimon said ?Yes, a lot of those companies needed TARP to survive, and yes, a lot did not.?

Mr. Dimon has expressed some of these complaints before. During JPMorgan?s earnings conference call in January, he said it was unfair that the big banks would be the only ones forced to pay the Obama administration?s proposed bank tax to ensure that all the TARP money is repaid.

Mr. Dimon said Thursday at the Investor Day conference that he supported certain new regulations to secure the financial system, but not all of them. He said JPMorgan had always supported the creation of a systemic risk regulator, which would be controlled by the Federal Reserve, to monitor the largest and most interconnected banks in the nation.

He disagreed with one proposal to create a separate agency devoted to consumer protection, which would regulate a whole host of activities from mortgages to credit cards.

?We want better consumer protection; we just don?t want a new agency. We think it should be done by the O.C.C. and the Fed,? Mr. Dimon said, referring to the Office of the Comptroller of the Currency.

?Yes, you can say they didn?t do a great job, but they are professional people,? he said. The elegant solution is for Congress to tell them do a better job.?

Mr. Dimon may get his wish, thanks to some persuasive lobbyists in Washington. Senator Christopher J. Dodd, Democrat of Connecticut and chairman of the Senate Banking Committee, said last month that he might drop demands for a new agency after pushing for its creation.

Thursday was certainly a day for JPMorgan to express its concerns about regulatory changes in Washington. Earlier in the day, James E. Staley, the bank?s investment banking chief, acknowledged that regulatory changes being considered in Congress had influenced the bank?s acquisition strategy.

? Cyrus Sanati

Dec 09

“will not file the documents,” Jamie Dimon,

Take you hands away from your eyes Mr. Dimon.

Mortgage industry executives say homeowners simply are not complying with the program’s requirements, despite their best efforts to reach out. Homeowners “will not file the documents,” Jamie Dimon, JPMorgan Chase & Co.’s CEO, said this week. “We need the documents. We are trying to simplify it.”

There are so many storys of people sending paperwork into Chase and Chase will lose it. Mr. Dimon only blames the home owner and never his company. Chase has lost my paper over 4 times in last year.

Dec 08

Hit Hard By Home Foreclosures

At a Congressional hearing on the foreclosure crisis, a Cuyahoga County official said the situation is “worse than it’s ever been – far worse.”

Paul Bellamy, who oversees the Foreclosure Prevention Program for County Treasurer Jim Rokakis, says the problem is quiet because the banking industry has changed the rules. “The industry is not processing loans the way it used to,” Bellamy says. “It makes it look liked we’ve leveled off, and in fact, we haven’t.”

Chairing the hearing was Congressman Dennis Kucinich, who called Cleveland “the epicenter of home foreclosures in the United States.”

Kucinich said the government had not adequately addressed the crisis when it gave the nation’s major banks bailout money last fall. One proposal put on the table was to force banks that took bailout money to offer better terms to people facing foreclosure.

But Rep. Jim Jordan, a Republican from southern Ohio, said government is not the answer. “If big federal government spending, big federal government regulation was going to get us out of this economic downturn,” Jordan said, “we’d have been out of it a long time ago because that’s all the government has been doing.”

Oct 14

JPMorgan earns $3.6B, but loan losses remain high

JPMorgan Chase & Co. reported strong third-quarter earnings Wednesday as its thriving investment banking business more than offset rising loan losses that the bank warned would continue for the forseeable future.

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Symbol Price Change
JPM 47.40 +1.74

JPMorgan, the first of the big banks to report earnings for the July-September period, reported a $3.59 billion profit but also said it roughly doubled the amount of money it set aside for failed home and credit card loans in the quarter.

The bank’s earnings cheered investors, who sent JPMorgan stock and the overall market higher. Still, the bank’s performance shouldn’t be taken as a forecast for how well other banks did. Many financial companies don’t have such big investment banking operations, which includes trading of stocks and bonds and allowed JPMorgan to overcome its loan losses.

Banks including JPMorgan have predicted for some time that their loan losses would keep rising. And in JPMorgan’s earnings statement, CEO Jamie Dimon confirmed that this trend continues.

“Credit costs remain high and are expected to stay elevated for the foreseeable future in the consumer lending and card services loan portfolios,” Dimon said.

The company said for the second straight quarter that there are some signs of stabilization in delinquencies among consumer loans that are only recently past due. But Chief Financial Officer Mike Cavanagh said during a conference call with reporters that the bank “can’t at the moment be certain” that the trend will continue.

JPMorgan may be able to raise its 5 cent per share quarterly dividend to as much as 25 cents if loan losses stabilize and the company’s credit costs fall, Cavanagh said. The CFO said that an increase could come early next year, but he again cautioned that’s it too soon to know if the economy will recover enough to make a higher dividend possible.

Investors didn’t seem troubled by the bank’s dim credit outlook, and likely were more focused on the fact that big profits in divisions such as investment banking helped the New York-based bank earn 82 cents per share during the third quarter. Analysts forecast a profit of 52 cents per share.

JPMorgan said its investment bank net income came to $1.92 billion, up $1 billion from a year earlier as fixed income trading thrived.

The company’s stock jumped $1.34, or 2.9 percent, to $47 in morning trading.

JPMorgan, the nation’s largest bank by assets, has been considered one of the strongest financial companies during the past year’s turmoil. It has performed better than other large competitors in part because of its relatively light exposure to troubled subprime mortgages and commercial real estate.

However, traditional residential mortgages and home equity loans as well as credit cards continue to default at a rapid pace and that has eaten into JPMorgan’s profits.

In its earnings statement, the bank also described the near-term path of the economy as uncertain.

JPMorgan’s loss provision to cover current and future home loan defaults jumped to $3.99 billion, while its provision for credit card losses surged to $4.97 billion.

Cavanagh said that if the economy continues on a recovery path and doesn’t falter again, JPMorgan is probably close to reaching its peak loan-loss reserve levels.

Credit card defaults and mortgage losses are likely to continue to creep higher and lag an overall economic recovery. Losses on credit cards typically mirror unemployment, which rose to 9.8 percent in September.

Economists predict the jobless rate will eclipse 10 percent in the coming months.

JPMorgan said the percentage of credit card loans it wrote off as not being repayable in the third quarter reached 10.3 percent of its total portfolio. Cavanagh said during a separate call with analysts that the card loss rate is expected to reach 10.5 percent in the first half of 2010 and could go higher depending on the unemployment rate.

Loan losses were also pushed higher by weakness in the portfolios JPMorgan acquired when it purchased the failed bank Washington Mutual a year ago.

Fixed income markets accounted for two-thirds of the investment bank’s $7.51 billion in revenue. While the company’s trading operations were strong, JPMorgan was also able to write up the value of some investments that have started to recover after souring during the peak of the credit crisis.

Overall, JPMorgan generated $28.78 billion in revenue during the quarter, better than the $24.96 billion predicted by analysts.