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Omaha Steve

(99,653 posts)
Fri Apr 11, 2014, 09:57 AM Apr 2014

JPMorgan Earnings Fall 18.5% on Slowdown in Trading and Mortgage Lending

Source: NYTimes

By JESSICA SILVER-GREENBERG

JPMorgan Chase reported an 18.5 percent slump in first-quarter earnings on Friday, as the nation’s largest bank grappled with dual challenges: sluggish revenue from trading and lackluster mortgage lending.

Both issues, broadly buffeting the banking industry, damped profits at JPMorgan.

The net earnings of $5.27 billion, or $1.28 a share, came in slightly below Wall Street analysts’ expectations of $1.40 a share on revenue of $24.53 billion.

Revenue dropped to $23.86 billion. The bank’s stock dropped when the market opened on Friday morning, falling more than 4 percent

FULL story at link.


Read more: http://dealbook.nytimes.com/2014/04/11/jpmorgan-earnings-fall-18-5-on-slowdown-in-trading-and-mortgage-lending/?_php=true&_type=blogs&partner=EXCITE&ei=5043&_r=0





Richard Drew/Associated Press
Jamie Dimon, chief executive and chairman of JPMorgan Chase.
8 replies = new reply since forum marked as read
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JPMorgan Earnings Fall 18.5% on Slowdown in Trading and Mortgage Lending (Original Post) Omaha Steve Apr 2014 OP
My heart aches for Jamie ....... marmar Apr 2014 #1
wtf is making trading slow down? hedda_foil Apr 2014 #2
Well, taking a stab at it Yo_Mama Apr 2014 #8
Only one solution: Bigger bonuses for the top guys! Faygo Kid Apr 2014 #3
Remember the argument used why those who were responsible for the financial crisis. We were told it lostincalifornia Apr 2014 #4
This is what happens when an economy becomes top-heavy, when economic injustice and JDPriestly Apr 2014 #5
This could be the start of something good. dixiegrrrrl Apr 2014 #6
Don't worry it's a Traders Joy...they can come back they have the Full Faith KoKo Apr 2014 #7

hedda_foil

(16,375 posts)
2. wtf is making trading slow down?
Fri Apr 11, 2014, 10:21 AM
Apr 2014

As far as Dimon is concerned ... but what's behind the trading slowdown?

Yo_Mama

(8,303 posts)
8. Well, taking a stab at it
Sat Apr 12, 2014, 06:37 AM
Apr 2014

The Fed continues to taper, which hurts. Mortgage originations have been dropping (sales are more and more cash/corporate). That leaves less fuel. So the action has been in corporates mostly. There are also new regs on trading with less action allowed in the funky stuff. And the impending end of QE induces caution, because when such a big buyer steps out, it is harder to make money and the risks of losses get higher.

Faygo Kid

(21,478 posts)
3. Only one solution: Bigger bonuses for the top guys!
Fri Apr 11, 2014, 10:29 AM
Apr 2014

Cut non-essential staff (aka hard-working, long-time loyal employees), and drive up bonuses to the top guys, especially Jamie!

And if that doesn't work, use our tax dollars to bail them out, and give even BIGGER bonuses to Jamie and the other 1/10th of one percenters.

Problem solved - the American way!

lostincalifornia

(3,639 posts)
4. Remember the argument used why those who were responsible for the financial crisis. We were told it
Fri Apr 11, 2014, 10:53 AM
Apr 2014

was essential to keep them aboard and not fire them because no one else was qualified to do their job, and that is why they "deserve" their compensation.

That is a pretty low standard as far as I can see.

I guess the standard is nobody is as good as they are for creating the financial meltdown

At least that is the logic I see

JDPriestly

(57,936 posts)
5. This is what happens when an economy becomes top-heavy, when economic injustice and
Fri Apr 11, 2014, 11:12 AM
Apr 2014

income disparity is so great that it suffocates the life out of the economy.

The greed is finally coming full circle.

It's the movement of money, the exchange of money for goods and services that makes an economy move, become vibrant, creative and healthy. If the top 1 to 10% grab all the money and "invest" it in paper on which Wall Street has scribbled its magic numbers (read "sit" on it), and create nothing with it and don't pay anyone to create anything with it and just sell cheap junk they buy in a third-world country to minimum wage American workers, then the entire economic body becomes weak and everybody suffers.

What goes around comes around. Wall Street's greedy habits are coming back to bite.

This slight slow-down won't last long this time. But the circle of folks who have an economic chair to sit on gets smaller and smaller. One of these days even Jamie Dimon could find himself standing up the final loser in the ongoing game of economic chairs sits there just grinning at him.

And who will that winner be? Someone at Goldman Sachs maybe?



KoKo

(84,711 posts)
7. Don't worry it's a Traders Joy...they can come back they have the Full Faith
Fri Apr 11, 2014, 06:06 PM
Apr 2014

and Credit of the US Government and Taxpayers at their Disposal....!

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