Dick Bove: This Was Not A Good Quarter For JPMorgan

Dick Bove spoke with CNBC this morning about JPMorgan’s earnings, and how they are slightly misleading about the real state of the bank.

  • 0:45 Jamie Dimon is not telling us what JPMorgan will be doing to offset the costs of financial reform; he will likely be adding new charges for accounts.
  • 2:30 These are manipulated earnings based upon the company moving reserves and counting them as earnings, if you are a bear on the stock.
  • 3:00 This is not a good number for JPMorgan in anyway, shape, or form.
  • 4:00 Banks are all going to do the same thing, explaining away reducing the amount of reserves they have. But if the economy is not as strong as they suggest, those reserves will come back. 
  • 5:00 Can we trust the banks’ vision on the economy? They are now increasing their vulnerability, but they may be wrong about the economy.
  • 6:00 Regional banks will show some increase in revenue, but the majors will not.
  • 7:20 Banks are shrinking their loan portfolios, reducing the money supply at the highest rate since the depression, and there is no way the economy can grow robustly if that money supply isn’t high.
  • 9:00 Jamie Dimon missed it completely on housing; there is no indication they knew what was happening.

From CNBC (via Zero Hedge):

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