Wednesday, April 14, 2010

JPMorgan Chase Huge Litigation Reserves Anemic Dividend

JPMorgan Chase (JPM) reported improved results. Or did it? The improvements come from the gunslinger side of the business investment banking and treasury & security services. The bread and butter lend money to an individual did not fare as well. Quite frankly they are still losing money in retail and card services.

JPMorgan slipped in a $2.3 billion in additional litigation reserves, including those for mortgage-related matters under corporate results. When you consider they made some $3.3 billion in the same quarter that’s a lot of money for arguing about something. That’s also a lot of money for something that is not a credit loss.

Money talks. B*LLSH*T walks. Financial institutions can twist their accounting around forever. The dividend yield says it all. It’s well below half of one percent. For a blue chip money center bank that still stinks.

Disclosure: No position in this stock