J.P. Morgan CEO sees positive signs in Calif. real estate

Dimon says J.P. Morgan won't take part in PPIP program

"We have no intent on using PPIP at all. We don't need it," Dimon said on a conference call with investors and analysts on Thursday. Dimon said if the bank wants to buy troubled assets it will buy them, but it won't borrow from the government to do it. "We're certainly not going to borrow from the federal government because we've learned our lesson about that. But I do think that if PPIP is properly executed, it could be good for the system because it could give some prices to certain loans and help some companies do things they might not otherwise have been able to do," he concluded.
 
A day after rival credit card firm Capital One said its chargeoffs topped 9%, outpacing the unemployment rate, J.P. Morgan Chase said Thursday that chargeoffs at it core Chase card operations would likely hit 9% to 9.5% soon. Chief Financial Officer Mike Cavanaugh said on a conference call following the company's first quarter earnings results that, "we can expect to be in a Chase charge-off range of 9% to 9.5% and we'll probably move up 200 basis points from where we are this quarter in the second quarter.
 
That's because they are probably holding a ton of foreclosed homes that they need to unload. I think CA is still very overpriced.
 
Quote from Vinny1:

That's because they are probably holding a ton of foreclosed homes that they need to unload. I think CA is still very overpriced.
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If you look at some of the stats for JPM's sub-prime loans and mortgages that were absorbed in the WAMU acquisition, Q1 wasn't too bad at all.

If anyone has the power to survive this collapse in the housing market, it's JPM.

Their trading desk results were also solid.
 
JPM loan loss reserves as a% of non-performing loans have been going down all 2008/09. Dimon's defense was 'NPL will peak at some point then you dont need any more reserves' :p
 
Quote from Daal:

JPM loan loss reserves as a% of non-performing loans have been going down all 2008/09.
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Meanwhile the recoveries for those bad loans are getting worse as housing keeps going down
 
Take a look at this Youtube video, I came across this last night, its a video some guy put together about the housing crisis in california, there are 5 videos this is just the 1st one.

If you think there is a turnaround in real estate coming I feel sorry for you...


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