Wednesday, October 14, 2009

JPMorgan Chase Double Messages

JP Morgan Chase (JPM) announced positive Q3 results and excited the market. Net income of some $3.6 Billion vs a mere $527 million for same quarter last year. But here is the sleeping problem. $2 billion for anticipated credit losses. Jamie Dimon, Chairman and Chief Executive Officer, offered the opinion that delinquencies and loan losses will remain elevated "for the foreseeable future" in its consumer and credit-card operations. He also has noticed that business clients are reticent about using available credit lines. This all means tough sailing in the future. The bad clients will cost you and the good clients will not use you.