Chronicles Of Depression 2.0: #403: JPMC
(Reuters) – At least two analysts on Thursday projected that JPMorgan Chase & Co would suffer write-downs in the range of $1.6 billion to $1.7 billion for the fourth quarter and cut their profit outlook for the bank. Analysts at Citigroup and Fox-Pitt Kelton said they cut fourth-quarter estimates to reflect the recent company outlook of higher-than-expected loan loss reserve additions, likely writedowns as well as private equity losses.
On Wednesday, JPMorgan Chief Executive Jamie Dimon said losses across the bank’s mortgage and credit card portfolios were rising. Dimon also said JPMorgan will add to reserves in the fourth quarter due to rising losses in its subprime mortgage and home-equity loan portfolios.
“The way things are going in the economy, we are now assuming the large reserve-build phase will continue through the first half of 2009,” Fox-Pitt’s David Trone wrote in a note to clients.
Trone raised his 2009 reserve build forecast to $4.5 billion from $1.7 billion for the bank.
Emphasis added by me.
How many billion-dollar writedowns until we get rid of that quadrillion?