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 nations 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 banks 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.
marmar
(77,081 posts)hedda_foil
(16,375 posts)As far as Dimon is concerned ... but what's behind the trading slowdown?
Yo_Mama
(8,303 posts)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)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)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)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?
dixiegrrrrl
(60,010 posts)Pray it is a trend.
KoKo
(84,711 posts)and Credit of the US Government and Taxpayers at their Disposal....!