JP Morgan Q2 Earnings
This is one of the big ones that the markets are looking at to gauge the health of the market and the results are reasonably good to flat, revenue is as per expectations at $25.6 billion and the EPS is $1.09 which is better than expected but CEO Jamie Dimon is very disappointed at the amount of charge offs still required at a total of $5.5 billion!!! Which is a lot of money….
Trading revenue is not looking to hold the current levels due to the implementation of the extra regulation due out when the senate pass the Fin Reg Bill.
They are saying that charge offs are reducing which is very true in the Sub Prime markets but there is no talk about the rapidly increasing bad debt in the prime market due to the resetting of Alt A mortgages that were taken out in the higher end of town, recent reports put 1 in 7 mortgages in the $1 million region in serious state of delinquency which means they are not in default yet and are yet to hit the balance sheets.
Of course there is the other factor that banks got that new rule at the start of the crisis to enable them to NOT write down the value of the assets on their balance sheets to market value but one day they are going to have to pay the piper.
