JPMorgan Bucks Mortgage Trend
Trouble in the mortgage markets is not fazing JPMorgan Chase (JPM), which is actually looking to add personnel to its lending unit.
During a presentation at the Merrill Lynch Banking & Financial Services Conference on Tuesday, CEO Jamie Dimon said the firm was looking to build its six core businesses: Banking, retail, credit cards, commercial banking, treasury and securities services and asset management.
JPMorgan is also looking to expand its mortgage business. The move is contrary to other lenders and banks including Countrywide Financial (CFC), which has had to slash thousands of jobs as a result of declining originations and a general malaise over the mortgage industry.
"We think this is one of the great opportunities," Dimon said.The plans to hire come as the company prepares to bring $12 billion to $20 billion of subprime, Alt-A loans and jumbo mortgages onto its balance sheet, Dimon said. JPMorgan Chase has emerged relatively unscathed by the credit crunch thus far, compared to other large diversified banks such as Citigroup (C) and Merrill Lynch (MER). Those two firms were forced to take billions in writedowns as a result of declining values on their exposure to collateralized debt obligations, or CDOs. The large writedowns ultimately led to the departure of CEOs Chuck Prince at Citi and Stan O'Neal at Merrill Lynch.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV