Hawks Circling Subprime Carnage

JP Morgan's Dimon among the survivors looking to clean up
By Jim O'Neill,  Newser User
Posted Jan 17, 2008 12:33 PM CST
The headquarters for J.P. Morgan Chase & Co. is shown in this Jan. 17, 2006 file photo in New York.   (Associated Press)
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(Newser) – After largely dodging the subprime bullet that tore through most of Wall Street’s big banks, JP Morgan Chase is looking to make a move, the Wall Street Journal reports. Buoyed by three years of cost cutting and refocusing its business, Morgan has nearly doubled its mortgage market, is flush with cash, and eager to expand through acquisition.

Morgan's fourth-quarter profits plunged 34% yesterday, but the bank is still better off than most. Major West Coast and Southeast players have been leveled by the housing downturn, which “make it more likely” shopping will begin in earnest. Morgan isn’t the only firm looking to capitalize—Goldman Sachs’ record profits have helped it close a covey of mortgage-related deals.