J P MORGAN AGAIN

J P Morgan Chase reported thrid quarter profits that were almost twice as much as some predictions!

But when you analyse the performance of each sech sector, some very serious questions should be asked.

The investment banking branch of the bank did the best by far, with nearly $2 billion in profit, while the credit card branch lost $700 million and the retail branch barely broke even.

Investment banking is about predicting the future. It's about putting money into businesses that are going to make money.

So how did JPMC predict the future?

Perhaps that is the wrong question.

Perhaps the question should be, how did JPMC engineer the future?

The banks reporting massive profits in this crisis have two things in common;
1. they are investment banks, or have investment branches which produce the largest profits of each operation of that bank
2. they have very, very strong connections to Bilderberg

I am thinking of JPMC, Goldman Sachs and Deutsche Bank.

Their senior advisors and managers all meet at Bilderberg and somehow always come out on top, no matter the situation.

So, how do they know what to invest in to produce such staggering and surprising profits? It is not just down to luck or intelligence. There is much more going on.

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From http://www.guardian.co.uk/business/2009/oct/14/jp-morgan-beats-profit-forecast


JP Morgan smashes expectations with $3.6bn profit

• Wall Street bank made $3.6bn in the last quarter
• Goldman Sachs, Citigroup and Bank of America results due

JP Morgan has kicked off the US bank reporting season by smashing profit expectations, making $3.6bn in the last quarter.

The Wall Street bank made net profits of $0.82 per share in the three months to 30 September. Analysts had predicted $0.49-$0.51 per share. The results are another sign that the banking sector is enjoying better times, just a year after having to be bailed out by massive government intervention on both sides of the Atlantic.

The prospect of Wall Street banks posting healthy profits again so soon after the financial crisis that claimed Lehman Brothers has already alarmed some experts, especially with Goldman Sachs – due to report tomorrow – setting aside a reported $22bn to pay its staff. City minister Lord Myners is meeting with 11 of the biggest banks today to urge restraint and demand that bonuses can be clawed back if appropriate.

Chief executive Jamie Dimon credited the strong profits to "broad-based growth" across JP Morgan's investment banking, asset management, commercial banking and retail banking operations. But he also warned that consumers are finding it increasingly hard to repay loans in the recession.

"While we are seeing some initial signs of consumer credit stability, we are not yet certain that this trend will continue," added Dimon – one banking executive whose reputation has not been crushed by the financial crisis.

JP Morgan had to set aside another $2bn to cover future losses on customers who cannot repay their loans. Provisions for credit card losses grew to $4.967bn, up from $4.6bn in the previous quarter and a large hike on the $2.229m put aside a year ago. Its retail banking arm made a bad-debt provision of almost $4bn to cover consumer loans that turn sour, up from $3.85bn three months ago.

The overall strong performance was partly due to a $400m "write-up" on the value of JP Morgan's legacy leveraged lending and mortgage-related assets. This is a reversal of the recent trend of banks slashing the value of these type of assets, and analysts suggested that rival banks could copy this move. Citigroup and Bank of America are also due to release third-quarter trading results later this week.

JP Morgan's investment banking arm made net profits of $1.92bn, while commercial banking made $341m. However, the large provisions against credit losses meant that retail banking made a net profit of just $7m, while the credit card arm lost $700m.

Shares in JP Morgan rose in pre-market trading. The results, which followed better-than-expected numbers from Intel overnight, sent the FTSE100 index soaring by over 100 points to a new intraday high for 2009 of 5261. The Dow Jones is also expected to gain over 100 points when trading begins.

JP Morgan received $25bn from the US Treasury in October 2008 as part of America's bailout of the banking sector, and was one of the most eager to repay the money as conditions improved this year.