GRAND THEFT BANK: $10 Billion for Bonuses At JPM
We will never pass up an opportunity to talk TARP truth. Dean Baker destroys the grand illusion that the TARP was good for you.
There was no financial system save.
TARP kept Wall Street in the business of paying bonuses - Blankfein got $125 million - aided by a captured media elite happy to spew nonsense.
Now onto the story...
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J.P. Morgan’s profit jumps 47%
SAN FRANCISCO (MarketWatch) — J.P. Morgan Chase & Co. reported quarterly results Friday that were buoyed by a recovery in mergers and acquisitions and other investment-banking businesses like underwriting equity and debt offerings.
J.P. Morgan said its fourth-quarter net income rose to $4.8 billion, or $1.12 a share, from $3.3 billion, or 74 cents a share, in the year-earlier period. Net revenue increased 13% to $26.1 billion, the company said.
“Credit trends in our credit-card and wholesale businesses continued to improve,” said Chief Executive Jamie Dimon in the earnings release. “In our mortgage business, while charge-offs and delinquencies have improved, credit costs still remain at abnormally high levels and continue to be a significant drag on our returns.”
J.P. Morgan was expected to earn $1 a share on revenue of $24.2 billion, according to the average estimate of analysts surveyed by FactSet Research.
J.P. Morgan’s investment bank generated net revenue of $6.2 billion, up from $4.9 billion a year earlier. Net income was $1.5 billion, down from $1.9 billion a year earlier as the company paid more performance-based compensation to bankers and traders.
Investment banking fees were $1.8 billion, down 3% from the prior year but up 22% from the previous quarter.
Fixed Income Markets and Equity Markets revenue totaled $4 billion, compared with $3.7 billion a year earlier and $4.3 billion in the prior quarter.
“Although we continue to face challenges, there are signs of stability and growth returning to both the global capital markets and the U.S. economy,” Dimon said.
The provision for credit losses in the fourth quarter fell to $3 billion from $3.2 billion in the third quarter and from $7.3 billion in the year-ago quarter.
J.P. Morgan experienced “continued overall improvement in credit trends, where most loan categories saw declines in both net charge-offs and in nonperforming assets,” said Miller Tabak analyst Thomas Mitchell in a note.
“The 2010 credit metrics have been very ‘lumpy’ by quarter, with a breakout improvement in [the second quarter], followed by some deterioration — for most banks — in [the third quarter],” the analyst wrote. “J.P. Morgan’s report may keep the anxiety levels unchanged, with a constructive but not exceptional improvement in fourth-quarter credit metrics.”
Tier 1 common capital ratio, a measure of financial strength, rose to 9.8% from 9.5% at the end of the third quarter, J.P. Morgan said.
Total noninterest expense increased to $16 billion from $12 billion in the fourth quarter of 2009. J.P. Morgan boosted its litigation reserves by $1.5 billion, related to “mortgage-related matters.”
Continue reading at Marketwatch...
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$10 Billion for Bonuses at JPMorgan...
Funds set aside to reward traders, deal makers and the unit’s other personnel increased 4 percent to $9.73 billion, or an average of $369,651 for each of the 26,314 workers, the company said today in an earnings supplement. That’s 2.4 percent less than the average of $378,600 a year earlier, when 24,654 people worked there. Compensation amounted to 37 percent of revenue last year, up from 33 percent in 2009.
Continue reading at Bloomberg...
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Mortgage Putback Pain For JP Morgan
While Dimon called the U.S. housing market still “terrible,” he said it’s better than it was a year ago. The bank put $1.5 billion in litigation reserves to cover costs related to buying back faulty mortgages. It also set aside $2.1 billion more against soured loans from Washington Mutual, the lender JPMorgan bought in 2008.
Private Label
Dimon said most of the new litigation reserves are intended for so-called private-label mortgages, which are not insured by the federal government or federally controlled mortgage companies Fannie Mae and Freddie Mac. He said it will take years to resolve those disputes and to determine the ultimate cost to JPMorgan.
“It’s going to be a long ugly mess, but it won’t be life- threatening to JPMorgan,” he told analysts on a separate call. “We will be talking about this for every quarter over the next three years.”
http://www.bloomberg.com/news/2011-01-14/jpmorgan-profit-rises-47-beats-analyst-estimates-on-lower-credit-costs.html
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"The largest theft and coverup ever...."
Video - Brilliant piece from Ratigan on JPMorgan's profits last year...
Don't skip this!
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Start the slideshow - 33 pics:
Ken Lewis, Vikram Pandit, Jamie Dimon, Lloyd Blankfein and John Mack in all their failed-out, bailed-out, busted-out, bonused-out, arrogance.
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Have you seen this one...
We will never pass up an opportunity to talk TARP truth. Dean Baker destroys the grand illusion that the TARP was good for you.
There was no financial system save.
TARP kept Wall Street in the business of paying bonuses - Blankfein got $125 million - aided by a captured media elite happy to spew nonsense.
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Background reading on TARP...
Tale Of The TARP Two Years Later: How The Elite Media Perpetuated The Lies
Meet Herb Allison: Minister Of Bailout Propaganda
Geithner's Magical Mystery Tour Of TARP Propaganda Has Little Use For Truth
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Watch this clip...
Video - TARP CEOs Strike It Rich On Taxpayers
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Jan 20, 2011 at 2:25 PM
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JPMorgan Chase & Co., the second- biggest U.S. bank by assets, posted a record $4.83 billion profit, buoyed by $2 billion in reserves added back to earnings as credit quality and the U.S. economy improved.
Fourth-quarter net income, which rose 47 percent, was $1.12 a share, compared with $3.28 billion, or 74 cents, in the same period of 2009, the New York-based company said today in a statement. The results compared with an average per-share estimate for adjusted earnings of $1 projected by 25 analysts surveyed by Bloomberg. The shares rose as much as 2.9 percent to a nine-month high.
While Dimon called the U.S. housing market still “terrible,” he said it’s better than it was a year ago. The bank put $1.5 billion in litigation reserves to cover costs related to buying back faulty mortgages. It also set aside $2.1 billion more against soured loans from Washington Mutual, the lender JPMorgan bought in 2008.
Private Label
Dimon said most of the new litigation reserves are intended for so-called private-label mortgages, which are not insured by the federal government or federally controlled mortgage companies Fannie Mae and Freddie Mac. He said it will take years to resolve those disputes and to determine the ultimate cost to JPMorgan.
“It’s going to be a long ugly mess, but it won’t be life- threatening to JPMorgan,” he told analysts on a separate call. “We will be talking about this for every quarter over the next three years.”
http://www.bloomberg.com/news/2011-01-14/jpmorgan-profit-rises-47-beats-analyst-estimates-on-lower-credit-costs.html
http://www.bloomberg.com/news/2011-01-14/harvard-receives-35-000-applications-for-undergraduate-admission.html
http://www.bloomberg.com/news/2011-01-14/u-s-consumer-confidence-unexpectedly-declines-on-jobless-rate-fuel-costs.html
Purchases climbed 0.6 percent, capping the biggest annual increase in more than a decade, Commerce Department figures showed today in Washington. Output at factories, mines and utilities increased 0.8 percent, the most in five months, according to data from the Federal Reserve.
http://www.bloomberg.com/news/2011-01-14/u-s-retail-sales-climb-for-sixth-month-yearly-gain-is-biggest-since-1999.html
http://www.bloomberg.com/news/2011-01-14/jpmorgan-investment-bank-cuts-average-pay-to-369-351-as-10-revenue-falls.html
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