No more Mister Nice Guy

16 Apr 2009 By Antony Currie Follow @AntonyMCurrie

The JPMorgan chief landed multiple punches on government policy, calling Tarp a scarlet letter, PPIP irrelevant for the firm, and risky, and accounting changes a hullabaloo. Bank bosses are rarely so frank but good earnings and a strong balance sheet offer some cover.

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JPMorgan Chase reported firstquarter earnings of $2.1bn, or 40 cents a share. Sellside consensus estimates were for 32 cents a share. The investment bank posted record revenue of $8.3bn and record earnings of $1.6bn, offset by combined losses of $936m in consumer lending and credit cards. Retail banking, commercial banking, asset management and securities and treasury services all reported a profit.

JPMorgan added $4bn to reserves, taking them to $28bn. And its tangible common equity increased by $3bn to $82.7bn, boosting TCE as a ratio of tangible assets to 4.2%. Tier one capital was 11.3%, and would be 9.2% without Tarp capital.

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