Archive for JP Morgan Chase
Foreclosure Moratorium Slows the Home Price Recovery Process
Posted by: | CommentsPosted To: Voice of Housing
Bank of America just became the first bank to suspend foreclosure sales across all 50 states. This follows news that JP Morgan Chase and GMAC would self impose eviction moratoriums and REO sales in 23 states. The next step is a nationwide freeze on foreclosure sales and new evictions by all servicers. These legal actions only serve to further delay the inevitable. Ultimately these foreclosed properties will hit the market some six to twelve months from now and further add to the inventory of unsold homes on the market. Our sluggish economy is in no shape to absorb a sudden flood of foreclosed properties. Delaying the disposition of REO inventory slows the home price recovery process. This makes it painfully obvious that these proceedings represent the proverbial nail in the coffin to insure…(read more)
Several big name financial institutions, such as Bank of America (NYSE: BAC) and JP Morgan (NYSE: JPM) are looking for ways to increase fee income in order to offset expected revenue declines from the financial reform bill.
The latest version of the financial reform bill passed on Thursday is expected to pressure revenue in several areas ranging from items like transaction fees on debit card transactions to proprietary trading at banks.
The rule changes may lead banks to start implementing fees that had essentially disappeared from the industry early in the new millennium, such a fees for not meeting mininumu balance requirements on a checking account, or reinstituting fees for certain online banking transactions that are currently free.
Banks are legitimately concerned with revenue declines due to the new rules as Bank of America said on Friday that it could stand to lose more than $2 billion in yearly revenue just from the changes in what fees can be charged on debit card transactions.
The financial reform bill, which is expected to be signed by President Obama soon, represents the largest sweeping change in the banking industry since the Great Depression era.
This article (Bank Of America (NYSE: BAC), JP Morgan (NYSE: JPM) Target Fees To Offset Revenue Drags From Financial Reform) was originally developed by and is property of American Banking News. Checkout American Banking News for up-to-date banking news and peer to peer lending news.
The Day Ahead: Earnings, Inflation, Manufacturing, Jobless Claims
Posted by: | CommentsPosted To: MBS Commentary
Stocks have gained more than 7% over the past five trading days, but yesterday the Dow inched up just 0.04% while the S&P 500 fell 0.02%. After a mixed session on Wednesday, equity futures have responded positively to JP Morgan earnings that beat analyst expectations. JPMorgan Chase & Co. reported second-quarter 2010 earnings of $4.8 billion, compared with $2.7 billion in the second quarter of 2009. Earnings per share were $1.09, compared with $0.28 in the second quarter of 2009. Consensus estimates called for $0.67 earnings per share. Nonperforming loans were $2.3 billion, down by $1.3 billion from the prior year and $481 million from the prior quarter. Jamie Dimon, Chairman and Chief Executive Officer, commented on the quarter: "Our net income increased to $4.8 billion, including…(read more)