Thursday, July 15, 2010

JP Morgan Politically Correct Earnings

JP Morgan (JPM) played some politics with the latest earnings release. The second lead off bullet point puffs up a supposed economic support program resulting in some $700 Billion in new and renewed credit for well almost everyone.

This of course includes capital raised on behalf of large corporations. That’s more than 4X JP Morgan's market cap. Looking at it from a balance sheet perspective that’s about 33% of total assets. Huge Numbers.

But there is very little information on the break outs. Some consumers were allowed to continue using their credit cards and JP Morgan wants you to think they are supporting the economy.

In the politically sensitive area of small business JP Morgan claims a 37% increase in originations. The term origination can be bent, folded, spindled and mutilated. If someone wanted an increase of a few dollars or a change in their term loan you can just see the corporate culture driving those changes as originations.

Sounds good for Jamie Dimon, Chairman and Chief Executive Officer when he is currying favour at the Obama White House. But just in case Obama was real busy with Warren Buffet Jamie Dimon put it into the press release for all to see.

Transparency has many shades.

Disclosure: No position in any stocks mentioned in this post.