Thread regarding JPMorgan Chase & Co. layoffs

JPM ran up big numbers today...

How can it be in a low interest rate environment???

People push this question the time.

But JPM makes LESS than half its revenue from interest earning activities.

Yes, the firm makes even more money when rates are climbing but this is not George Bailey's bank in "It's a Wonderful Life" they have many ways to make money and they are simply great at all of them. Jaime Dimon would have it no other way.

The next myth that needs to be exploded is that this bank is "expensive" BECAUSE their Price/Tangible Book Value is higher than other banks. This is thinking backwards and representative of understanding banks back in the 1950s-1960s. Price to Book is a very useful tool to compare a bank to ITSELF not to others. Why? Because other banks have different mixes of operations. Some are domestic, some have exposure internationally, some are active in the investment banking sphere, others are not, some trade aggressively others hardly at all. The point is that you can't use that kind of metric to compare different banks with different operational structures.

JPM crushed on revenues and earnings and set aside loan reserves that far exceeded expectations which means the future will be even better (i.e. lower loan reserve allocations) in the mean time this bank has enough capital to withstand the end of the world....others? not so much.

You can read some of the WFC comments (over at /wells-fargo-and ) the last 6 months and see how people fall in love with their dividends without understanding how vulnerable that bank really was. Higher exposure to interest rates, higher efficiency ratio (lower is better), less outside revenues. Charlie may be a good manager and getting better but he isn't a Jaime Dimon, not by a long shot!

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Post ID: @OP+15XOpoZP

3 replies (most recent on top)

This didn’t age well with yesterday’s lay offs

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Post ID: @2mfp+15XOpoZP

Banks like JPMC only job to make workers jobs to vanish by automation o thin air.
The Tampa Campus, 87% of te GTI Compliance teams are working remotely from India, warning about the future of the American people currently employed onsite.

JPMC is exhibiting all of the key indicators that experts use to characterise a failing Bank, the kind of nation on the brink you might’ve found in the post-s recessions.

The notion that one of the world’s oldest functioning banks could ever fail was, until recently, unthinkable, It is increasingly performing poorly on key predictors of race discrimination, equal opportunity, and lack of leadership.
Internal Ethnic and class replacement, confliand other socio-economic indicators including the great inequality.
We are in crisis , driven by an all white leadership team that has galloped away from those charged with overseeing it, and heading into an uncertain future, led by a man that has possibly could not grasp the racial divide the bank exhibits.

A PERFECT STORM

“We are now in the middle of all of these things happening at once,”

But decades of inaction on addressing the bank's ystemic failures, particularly surrounding racial inequality, has come home to roost.

And that growing inequality among much of the American population adds a different dynamic to the challenges the country is facing

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Post ID: @ojy+15XOpoZP

Your victory lap seems premature, even Dimon said a whole lotta pain is coming.

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Post ID: @eka+15XOpoZP

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