‘Unscathed’ JPMorgan Said to Reap $5 Billion Derivatives Profit

Här kommer det nu lite siffror som visar att JPMorgan kommer ut som vinnare ur finanskrisen och att banken relativt sina konkurrenter avsevärt förbättrat sina positioner.

"The JPMorgan trading desk, led by the 38-year-old Matt Zames, who previously worked at hedge fund Long-Term Capital Management LP, may have benefited as the collapse of Lehman Brothers Holdings Inc. and JPMorgan’s takeover of Bear Stearns Cos. left companies and hedge funds with fewer trading partners in the private derivatives markets. JPMorgan emerged “unscathed by the disasters” on Wall Street and positioned to capture more revenue as trading volumes grew, said Craig Pirrong, a finance professor at the University of Houston."

‘Unscathed’ JPMorgan Said to Reap $5 Billion Derivatives Profit
http://www.bloomberg.com/apps/news?pid=20601087&sid=a_v5DTUmYDbA&refer=home

Så med färre konkurrenter en del som har konkat och andra som banken kunna köpa upp bla mha TARP pengar så är nu denna kris ett gyllene tuillfälle för JPMorgan att inte bara tjäna pengar utan komma ut som en verklig vinnare. Vi säger väl grattis Rockefeller?

The US Treasury Department transferred $25 billion of US funds to JPMorgan Chase on Oct 28 via TARP.[23]. This was the fifth largest amount transferred under the United States 2008 bailout bill (a.k.a. TARP) primarily related to USA mortgages.[24]. A main stipulation in TARP was to help troubled assets related to residential mortgages and all obligations as such (see TARP).

In October 2008 a New York Times reporter was able to access a telephone employee’s only conference call with JP Morgan Chase. See Quote Below:

"Twenty-five billion dollars is obviously going to help the folks who are struggling more than Chase,” he began. What we do think it will help us (JPMorgan Chase) do is perhaps be a little bit more active on the acquisition side or opportunistic side for some banks who are still struggling. And I would not assume that we are done on the acquisition side just because of the Washington Mutual and Bear Stearns mergers. I think there are going to be some great opportunities for us (JPMorgan Chase) to grow in this environment, and I think we have an opportunity to use that $25 billion in that way and obviously depending on whether recession turns into depression or what happens in the future, you know, we have that as a backstop[25]. "
—Employees only conference call with JP Morgan Chase

TARP states "Troubled assets" are defined as "(A) residential or commercial mortgages and any securities, obligations, or other instruments that are based on or related to such mortgages, that in each case was originated or issued on or before March 14, 2008, the purchase of which the Secretary determines promotes financial market stability" [23], But a press release issued by JP Morgan Chase noted on December 23, 2008 showed a diversion from TARP.

"JPMorgan Chase & Co. is using the TARP funding for the purposes that the government has designated. The company (JP Morgan Chase) is lending to consumers, small businesses, corporations, municipalities and other institutions in a disciplined and responsible manner [26].
—JPMorgan Chase Press Release "

Jamie Dimon, JPMorgan chief executive, was quoted the week of Feb 1, in the face of the US government's lack of enforcement, quote

"JPMorgan would be fine if we stopped talking about the damn nationalization of banks. We've got plenty of capital. To policymakers, I say where were they? … They approved all these banks. Now they're beating up on everyone, saying look at all these mistakes, and we're going to come and fix it. [27][28]
—Jamie Dimon, JPMorgan chief executive "

In Feb 2009, JPMorgan Chase moved forward in using their monetary strength to acquire new businesses by advertising the strength of their capital base [27]. Yet to be determined as to whether these funds were provided by TARP and possibly in direct violation of TARP’s main intent; to help troubled assets related to residential mortgages and all obligations as spelled out in TARP, the US Government as of Feb 2009 had yet to move forward in enforcing TARPs’ intent in funding JP Morgan Chase $25 billion[23]

In January 2009, JPMorgan Chase announced its intent to change the terms of upwards of a trillion dollars-worth of mortgages in an effort to keep them from foreclosure.[29] Jamie Dimon, JPMorgan chief executive, criticized a proposed law that would allow bankruptcy judges to cut the mortgage rates in existing mortgages for borrowers who would otherwise be forced into default.[29] Despite its announcement in January 2009, JPMorgan Chase had continued to process foreclosures on hundreds of thousands of properties.[23] [27] [28][30] .
http://en.wikipedia.org/wiki/JPMorgan_Chase