JPMorgan Profit Jumps 36%, Defying Expectations

By Jason Farago,  Newser Staff
Posted Jul 16, 2009 7:00 AM CDT
Acustomer leaves a branch of Chase Bank in New York. JPMorgan Chase & Co. said today its profits rose 36% despite the continuing recession.   (AP Photo/Mark Lennihan, file)
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(Newser) – JPMorgan Chase, the largest bank to repay TARP money, posted second-quarter earnings of $2.7 billion—smashing analysts' predictions with a 36% increase in profit. The bank became America's second-largest after hoovering up Bear Stearns and Washington Mutual, and like Goldman Sachs it has used a boom in investment banking to offset lagging recovery in mortgage and credit markets. "This is a real tribute to Jamie Dimon, who's done a spectacular job in managing the firm through this difficult time," said one investor.

Like Goldman, JPMorgan took advantage of the financial crisis, the New York Times notes, to pass rivals and capture market share; its quick turnaround is likely to raise eyebrows in Washington about the taxpayer role in its increasing dominance.