Thursday, July 17, 2008

JP Morgan 2nd Q Profit Down 53% From Same Time Last Year

This a.m. the NYTimes reports, "JPMorgan Chase, the banking giant that has weathered the credit crunch better than many of its peers, said Thursday that its second-quarter profit plummeted 53 percent from the same time last year, to about $2 billion.

The firm attributed the drop to increased charges tied to subprime mortgages and other bad debt bets. JPMorgan also absorbed Bear Stearns, the faltering investment bank, during the quarter as part of a dramatic government-assisted rescue."

A "strong" bank with such big losses due to risky exposures.


Daniel, The Real Estate Zebra said...

While JPM's profits are down from a year ago, their 2Q numbers were better than expectations. The fact that their profits are down from a year ago isn't exactly a surprise to anyone.

matt. s. said...

Nope, not a surprise. The point is how much these drastically shrinking cashflows will cascade throughout the economy.

Better than expectations doesn't count for much.