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JPMorgan Profit Jumps 36%, Defying Expectations

By Jason Farago,  Newser Staff

Posted Jul 16, 2009 7:00 AM CDT
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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.

Acustomer leaves a branch of Chase Bank in New York. JPMorgan Chase & Co. said today its profits rose 36% despite the continuing recession.
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)
In this Feb. 11, 2009 file photo, JPMorgan Chase & Co. CEO James Dimon testifies on Capitol Hill in Washington.
In this Feb. 11, 2009 file photo, JPMorgan Chase & Co. CEO James Dimon testifies on Capitol Hill in Washington.   (AP Photo/Manuel Balce Ceneta, file)
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COMMENTS
Showing 2 of 2 comments
Reader31265286
Jul 16, 2009 2:24 AM CDT
Chase has another excellent recovery strategy in "this difficult time," this one aimed at "our best customers" with (soon to be not so) great payment and credit histories who were baited with balance transfer offers once or twice a month over the past few years: very low APRs and a 2% per month repayment schedule. Suddenly, this 2% increases to 5% on August 1, no discussion no opt-out. Why? Well, depending upon whom you talk to: because we can; because we're not making enough money on those accounts; we're doing you a favor as your balance will be paid off sooner, etc.
Nwambe
Jul 16, 2009 1:07 AM CDT
So American taxpayers footed the bill for a bank's expansion when the economy was at its lowest? Further reason for increased regulation of the finance industry generally. Cry foul all you want, but if the people are suffering and the banks prosper, it's close to time for a revolution, and which one would you rather have?

 
Wall Street • profits • earnings reports • second quarter earnings • quarterly profits • investment banks • JPMorgan Chase • TARP

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