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JPMorgan Chase Profit Soars, May Raise Dividend

Connie Madon — Fri, 14 Jan 2011 14:30:00 EST

Filed under: Earnings Reports, JPMorgan Chase (JPM)

The Wall Street Journal reported that JPMorgan Chase's (JPM) Q4 profit was up 47% in the fourth quarter. Earnings came in at $4.83 billion, or $1.12 per share, up from $3.28 billion or 74 cents a share a year ago. Revenue on a managed basis increased 5.9% or $26.72 billion. Thomson Reuters had forecast $24.37 billion in revenue.

This report is not surprising when you consider that the Fed is buying $600 billion in treasuries. When the Fed buys securities from banks it credits their balance sheets. So, right now, banks are swimming in cash.

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JPMorgan Chase Profit Soars, May Raise Dividend originally appeared on BloggingStocks on Fri, 14 Jan 2011 14:30:00 EST. Please see our terms for use of feeds.

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JP Morgan CEO: Financial crisis still has legs

Douglas McIntyre — Sun, 04 May 2008 10:10:00 EST

Filed under: Forecasts, Bad News, Citigroup Inc. (C), JPMorgan Chase (JPM), Merrill Lynch (MER)

When the CEO of one of the world's largest money center banks says things in the credit market will be bad for a long time, it is at least worth a listen.

James Dimon, head of JP Morgan (NYSE: JPM) told German publication Welt am Sonntag that he thinks the financial crisis in the U.S. could go on for much longer, according to a report by Reuters. Because Dimon's bank is in fairly good shape and has not had to level of write-offs that many of his peers have suffered, the long cold Winter of finance may not harm his company too badly. That does not go for other banks.

If the stock market is a fairly good proxy for which financial firms are likely to be OK in a prolonged crisis and which are not, then Merrill Lynch (NYSE: MER) and Citigroup (NYSE: C) have to be the top candidates for more trouble. Over the past year, JPM's shares are off about 5%. Citi is down 50% and Merrill is off by over 40%.

If Dimon is right, many big banks and brokerages are in for more write-offs as mortgage defaults move up, LBO debt loses more of its value, and consumer credit card paper gets hit by delinquencies. More write-offs mean raising more capital, something which Merrill and Citi have been doing with regularity.

If the two weak firms need to raise another $10 billion each, it is not hard seeing their shares slide by 15% or more. They almost certainly will survive, but not without shareholders paying a big price.

Douglas A. McIntyre is an editor at 247wallst.com and the author of the Ten Stocks Under $10 letter.

JP Morgan CEO: Financial crisis still has legs originally appeared on BloggingStocks on Sun, 04 May 2008 10:10:00 EST. Please see our terms for use of feeds.

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JPMorgan Chase taps Tony Blair for advice

Beth Gaston Moon — Thu, 10 Jan 2008 17:48:00 EST

Filed under: Deals, Management, JPMorgan Chase (JPM), Politics

Cheerio! What to do if you're a 54-year-old former world leader, in good health, with Western sympathies? Days of leading a major country are behind you, but you're not ready to pack it in anytime soon. Link up with a major American corporation, of course! Tony Blair, who served as Great Britain's prime minister from 1997 through June of last year, has agreed to join with JPMorgan Chase (NYSE: JPM) in the role of part-time adviser.

The financial terms of the arrangement weren't disclosed, but one Manhattan recruitment consultant estimated in The Financial Times that Blair's fee would likely be more than $1 million a year (though that sum doesn't go quite as far in pounds these days).

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JPMorgan Chase taps Tony Blair for advice originally appeared on BloggingStocks on Thu, 10 Jan 2008 17:48:00 EST. Please see our terms for use of feeds.

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Corporate intrigue at Dow Chemical

Michael Rainey — Wed, 09 May 2007 10:45:00 EST

Filed under: Scandals, JPMorgan Chase (JPM), Dow Chemical (DOW)

Today's New York Times has an article about the recent firings at Dow Chemical (NYSE: DOW). This story gets stranger every day. New details suggest that the boardroom cloak and dagger, in which high level executives were fired after being accused of holding secret talks about possibly selling the company, involved personality conflicts as much as inside dealing and high-level greed. At this point, it's hard to tell whether the whole thing was fueled by corporate power plays gone wrong, or simply senior executives who couldn't get along with each other.

The power play in question involves a meeting allegedly held between a Dow executive and a Dow board member and bankers from JPMorgan Chase (NYSE: JPM), including its CEO, James Dimon. Dow claims that the executive, Romeo Kreinberg, who was in charge of the $21 billion performance plastics portfolio at Dow, and J. Pedro Reinhard, a board member, met with the bankers -- at a luxury hotel outside on the Thames called the Compleat Angler -- in an effort to sell Dow Chemical. Dow claims that they had no authority to do so, and so they were fired. Both men have now sued the company for defamation. And of course Dow is suing them right back.

But earlier events suggest a different story. In March, Dow's CEO, Andrew Liveris, gave Mr. Kreinberg a negative performance review. Its language is surprising, and suggests a conflict between the men that is based on personality and attitude. Mr. Liveris wrote, "I expect to see that your negative body language when you disagree with a course of action is eliminated," and then stated that his "recent behavior was the last straw and I will not allow such destructive behavior to be repeated." Mr. Liveris gave Mr. Kreinberg three months to straighten up and fly right, or else he'd be fired. To my ears, this sounds like an angry teacher disciplining a student, not adults disagreeing on corporate strategy. And Mr. Kreinberg and Mr. Reinhard dispute the claim that they were trying to sell Dow. They say that they were simply invited to a meeting with the bankers and quickly dismissed the idea. JPMorgan certainly is interested in selling Dow -- which would be enormously profitable for the bank of course -- but the fired Dow execs had nothing to do with it.

We probably haven't heard the last of this story yet. Stay tuned for more boardroom backstabbing, high-end fishing, and lawsuits all around.

Corporate intrigue at Dow Chemical originally appeared on BloggingStocks on Wed, 09 May 2007 10:45:00 EST. Please see our terms for use of feeds.

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James Dimon has JP Morgan's house in order

Eric Buscemi — Thu, 18 Jan 2007 11:02:00 EST

Filed under: Earnings Reports, JPMorgan Chase (JPM)

All six businesses are getting stronger, margins are improving and the company has good organic growth, said James Dimon, chairman, president and CEO of JP Morgan & Chase Co (NYSE: JPM), in yesterday's Q4 earnings conference call. In addition, JP Morgan reported record quarterly earnings.

Dimon also declared victory over integrating its merger with Bank One. All the major financial and data platforms are now in place, he told investors. Dimon said due to the better operating performance, the company will have more capital that can be retained and invested which should help improve returns over time.

JP Morgan will be hosting an analyst day on March 6th to review the company's recent successes and where it will be going from here.

This stock has had a great six months, being up over 40%. However, JP Morgan is a big company and becoming more and more profitable each quarter and year. For those who want decent capital appreciation and some nice dividends, I would say that JP Morgan is the place to be.

James Dimon has JP Morgan's house in order originally appeared on BloggingStocks on Thu, 18 Jan 2007 11:02:00 EST. Please see our terms for use of feeds.

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