Post Tagged with: "financial statements"
JPMorgan has record revenue and $2.7 billion in profit
While Citi and BofA are getting taken to the woodshed for double secret probation, JPMorgan Chase is showing record revenue of $25.6 billion and a large profit of $2.7 billion. As profit is up 36% from a year earlier and 27% from just last quarter, you can see that JPM is now firing on all
Wells sells $600 million in distressed assets at 35 cents on dollar
I got a tip from a friend Andrew about a sale of assets by Wells Fargo (WFC) which raises a number of interesting questions. He sent me the following 14 July article from the Milwaukee Business Journal. Wells Fargo sold $600 million in mostly non-performing subprime loans to Irvine, Calif.-based Arch Bay Capital, National Mortgage
Goldman crushes earnings estimates
This comes via Bloomberg: Goldman Sachs Group Inc.’s second- quarter profit exceeded analysts’ estimates as record trading and stock underwriting led the company to its highest quarterly profit. Net income in the three months ended June 26 was $3.44 billion, or $4.93 a share, the New York-based bank said today in a statement. That surpassed
Is Meredith Whitney bullish now?
Just when I was wondering where Meredith Whitney had gone, she’s back. But she has a whole new tone to her. In this interview on CNBC, she says she is expecting a monster number from Goldman (GS) tomorrow morning, in 2010 and in 2011. She is well above the street on Goldman. She even uses
Financial Alchemy at Morgan Stanley: Greywolf A3 CDOs now Aaa bonds
The Online Merriam-Webster Dictionary describes alchemy as “a power or process of transforming something common into something special” or “aiming to achieve the transmutation of the base metals into gold.” Well, it seems Morgan Stanley is engaging in some financial alchemy because it is about to trade near-junk rated paper for Aaa gold-standard bonds (hat
Alcoa earnings on deck, but focus on FedEx and UPS
I have been looking forward to the Alcoa (AA) earnings report, due out later today, because of what it suggests about the economy. As the economy bottoms, the fortunes of cyclical companies that are leveraged to the overall state of the economy turn up. As Alcoa is the first company to report every earnings season
Consumer loan delinquencies paint bleak picture
This comes from Reuters: Fallout from a still deteriorating housing market caused the rate of consumer loan payments at least 30 days late to rise to 3.23 percent in the January-to-March period from 3.22 percent in the 2008 fourth quarter, the American Bankers Association said. Delinquencies were the highest since the ABA began tracking the
Commodities are getting killed
This morning, stock markets are down in Asia and Europe. And Futures show a likely decline in the U.S. What’s happening? I think we are seeing the March rally hitting the wall as the technical recovery everyone is anticipating looks to come later and to be less robust. As a result, commodities are selling off
What’s in your wallet? Probably higher interest rates.
FT Alphaville is reporting that the credit rating agency Fitch puts credit card losses at 10.4% of outstanding loans. This is a record. Bad news if you are a credit card company. So, what does one do in that situation? You raise rates on customers that are paying, silly. Citi’s rate increases emerged on the
If FedEx is losing money, you know the economy is in bad shape
Last month I said that June was significant for two reasons. First, we are going to get our first test of data that could disappoint, which would spell trouble for an overbought market. But, just as important, we need to watch the industrials because there is going to be no sustainable recovery unless these cyclical
U.K.’s Nationwide releases robust earnings and capital report
On the face of it, Nationwide’s earnings report looks extremely good: 15% Tier 1 Capital, Pre-tax profit of nearly £400 million. Given this financial institution’s leverage to the residential housing market, their results stand in stark contrast to the likes of Chelsea, which was downgraded by Fitch last week with four other U.K. building societies.
How refinancing helps the likes of Bank of America and Wells Fargo
Earlier today I posted an article about how accounting was favourable to banks in that it could help them weather the storm and appear well-capitalized until a recovery is underway. Afterwards, a buoyant economy would increase earnings enough to allow the massive writedowns that need to flow through the income statement to be taken in