JP Morgan: Additional Mortgage Losses Coming

jpmorgan jpm dimon chase jp morgan

JPMorgan (JPM) says the mortgage-related bloodletting is not over:

Marketwatch: J.P. Morgan Chase said Tuesday that it sees more mortgage-related losses in coming quarters. Losses on home equity loans could reach $1.4 billion over the next several quarters, the bank said in a presentation posted on its Web site. Prime mortgage losses may reach $600 million and subprime mortgage losses could hit $500 million in coming quarters, J.P. Morgan added in the presentation.

The bank also said it’s seeing “initial” signs of stability in consumer delinquency trends, but it warned that it’s not certain if the trend will continue. J.P. Morgan shares slipped one cent to $41.24 during afternoon trading on Tuesday.

Perhaps analyst John McDonald was correct when he predicted that JPM could witness up to $3 billion in losses from upcoming derivatives regulation. Time will certainly tell.

Below, the presentation in question:

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