All eyes on JPMorgan as banks report earnings

[Omaha Steve]

Source: AP-Excite

By PALLAVI GOGOI

NEW YORK (AP) - It's been a scandal-filled few months for banks.

JPMorgan Chase revealed a $2 billion trading loss, triggering an investigation by the government and hearings in Congress. Then the large banks were implicated in a global dust-up over interest rate manipulation.

All this happened amid signs of a slowdown in the U.S. and Chinese economies and a debt crisis in Europe, which won't help the banks as they report their financial results for April through June.

All eyes will be on JPMorgan on Friday, when it becomes the first bank to report. The trading loss rattled the company's stock price and hurt both its reputation and that of CEO Jamie Dimon, who is expected to provide an update.

FULL story at link.



Read more: http://apnews.excite.com/article/20120712/D9VVETOG0.html

[dipsydoodle]

1. What's at stake at JPMorgan's investor meeting

NEW YORK (AP) -- Just three months ago, JPMorgan Chase was viewed as the top American bank, led by the steady hand of veteran CEO Jamie Dimon.

In the last couple of months that stellar reputation has eroded, with Dimon appearing before Congress twice to explain a $2 billion trading loss, which could be growing. Several government agencies have also launched investigations.

On Friday morning, Dimon will appear before Wall Street analysts to apprise them of the size of the loss and what he has done to protect the bank from a similar kind of loss happening again. A lot rides on his ability to restore trust in the bank and calm angry investors who feel betrayed at being misled just three months ago, when Dimon characterized the losses as a "tempest in a teapot."

The surprise loss, which was disclosed May 10, has come to symbolize much more than a line item on an earnings report. It has become a glaring example of how large banks can incur huge losses by taking risky bets that can jeopardize the global financial system. Coming just four years after the 2008 financial crisis, its significance wasn't lost on members of Congress, the American public, or on investors.

http://hosted.ap.org/dynamic/stories/U/US_JPMORGAN_CHASE_TRADING_LOSS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2012-07-13-03-10-45

[dipsydoodle]

2. The loss was $4.4 billion

JPMorgan profit falls on $4.4 billion trading loss.

JPMorgan Chase & Co, the biggest U.S. bank by assets, reported a lower second-quarter profit on a loss from whale-sized derivatives trades in its London offices.

http://economictimes.indiatimes.com/news/international-business/jpmorgan-profit-falls-on-4-4-billion-trading-loss/articleshow/14864565.cms