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50% profit fall at JPMorgan Chase

JPMorgan Chase has revealed its Q1 profit plunged more than 50% after suffering $5.1bn (£2.5bn) in writedowns on mortgage-backed security investments.

The US bank, which last month bailed out former US rival Bear Stearns, says profit for the three months to March fell to $2.37bn compared with $4.79bn during Q1 last year.

Jamie Dimon, chief executive and chairman of JPMorgan Chase, says: “Our earnings this quarter were down significantly as market conditions and the credit environment remained challenging.”

He adds: “Retail financial services again increased loan loss reserves related to home equity and sub-prime mortgages as performance in these portfolios continued to deteriorate.

“However, the firm as a whole maintained solid business momentum and our capital position remained strong.”

He says the acquisition of Bear Stearns will add new capabilities in prime brokerage and help improve improving strength in equities, mortgage trading, commodities and asset management.

He adds: “We welcome the employees of Bear Stearns and look forward to working together to build increased franchise value.”


Mortgage Next workshops prove popular

Two regional broker workshops, hosted recently by Mortgage Next in Edinburgh and Manchester, have been declared a great success by intermediaries who say they have helped them identify and exploit additional income earning opportunities.Lisa Barber, sales and marketing director at Mortgage Next, says: “We’re delighted with both the turnout and response to our first two […]

Crunch forces Opus to shut Glasgow office

Opus Mortgages has blamed the ongoing liquidity crisis and market downturn for the closure of its Glasgow-based operations.The office’s pipeline business has been transferred to fellow Glaswegian firm Deep Blue, although Opus’ Cumbernauld branch is still operational.Lockhart Bruce, managing director of Opus, says: “Due to economic conditions and uncertain future trading, Opus has decided to […]

Brokers could benefit from squeeze

Soon there will be few lenders looking for new business but brokers have a vital role to play by finding the best mortgages still available to borrowers, says Sue Read

Demand sees Nationwide pull deals

Nationwide has blamed high demand for the withdrawal of a number of fixed rate products and the increase in the rates of other deals.Last week the lender pulled its two-year fixed rate deals at 5.82%, 6.02% and 6.52% plus its three-year fixed rate products at 5.95%, 6.15% and 6.65%.The building society’s five-year fixed rate deal […]

Jelf flexible benefits

In Focus: How to choose a flexible benefits provider — seven top tips

Jelf Employee Benefits looks at some of the key considerations employers should think about when reviewing and choosing a flexible benefits provider. Choosing the right benefits for your employees is one thing but delivering a successful employee benefits strategy is about understanding the complete picture and delivering it in a personalised way so that it resonates with each and every individual in your business. 


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