This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

5 Things to Watch for in JPMorgan Chase Earnings

The complaint alleged that Bear Stearns failed to evaluate the quality of the mortgage loans packaged into mortgage backed securities costing investors $22.5 billion in losses to date.

The complaint, however, does not mention damages sought. JPMorgan has said it would fight the charges.

The issue is likely to be front and center at the analyst conference call.

Speaking at the Council for Foreign Relations on Wednesday, Dimon said that the Bear Stearns acquisition has cost the bank $5 billion to $10 billion in various expenses till date. He said that the bank did the Fed a "favor" when it took over Bear Stearns in 2008 and argued that it was "unfair" that regulators were coming after them now.

"I'm a big boy. I'll survive...But I think the government should think twice before they punish business every single time things go wrong," Dimon said, according to a Reuters report .

Mortgage Putback Risks: Investors continue to demand that banks repurchase souring mortgage backed securities sold during the boom, alleging that banks misrepresented the quality of the underlying loans that were pooled into the securities.

JPMorgan has maintained that claimants face significant hurdles in litigation given that their disclosures were clear and investors were sophisticated.

Still, as The Street's Philip Van Doorn reports, JPMorgan faces significant putback risk . The company reported that as of June 30, there was $149 billion remaining in mortgage loans securitized from 2005 to 2008, and $47 billion of that total was past due 60 days or more, with $16 billion of the problem loans originated by Washington Mutual. JPM said that its "recognized mortgage repurchase liability" as of June 30 was $3.3 billion, declining from $3.6 billion as of Dec. 31."

Is the Whale Now a Small Fish?: Analysts will look for an update on the winding down of the ill-fated derivative trades by a trader nicknamed the London Whale. JPMorgan has so far booked $5.8 billion in losses in the first half of the year.

The bank has said that it is possible that a portion of the positions transferred to the investment bank could suffer additional losses between $800 million and $1.7 billion under "extreme" simulated scenarios.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
JPM $60.60 -0.59%
WFC $54.54 -0.42%
AAPL $125.21 -0.92%
FB $83.29 0.11%
GOOG $552.80 0.14%


DOW 17,896.80 -79.51 -0.44%
S&P 500 2,082.97 -3.27 -0.16%
NASDAQ 4,939.2780 -8.1630 -0.16%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs