Join us LIVE at 8:00 AM as JPMorgan (JPM) discusses its just-announced Q2. The investor deck is embedded below.
8:01 Still playing classical music.
8:04 Call beginning.
8:07 CFO Mike Cavanagh going through the numbers.
8:08 138,000 trial mods in the quarter.
8:08 Investment banking fee revenues an all-time record.
8:14 Talking retail banking. Feeling good about growth in deposits, despite not chasing rates. “We do expect to see some declines in the second half of this year, as we reprice downwards delibaretly high WaMu CDs”
8:15 Mortgage volume of $41 billion is motivated by decision to stear clear of broker-originated volume.
8:17 Buildup in delinquencies due to moratoria. But the loans are already written down.
8:20 Generally, dollar losses related to delinquencies are starting to speaking.
8:22 Discussing credit cards on Slide 12. $4.6 billion in credit cards costs. Mostly charge-offs. WaMu charge-offs in the 18-24% range, nearly double the Chase portfolio.
8:23 Future credit card losses all related to economy and unemployment.
8:33 Q&A Time:
Q: Consumer protection agency, thoughts?
A: Dimon: We are big supporters of proper consumer protection. We think there should be less regulator agencies, not more.
Q: Subprime and prime… expected loss rate guidance is being ticked up. How do you reconcile that with stabilizing delinquencies.
A: Expectations of worsening unemployment and severity of losses.
Q: CIT exposure?
Q: How do you think about California?
A: Dimon: We are in business in California forever. Still underwriting mortgages and small business loans. California’s always been really resilient. In fact, in a lot of places they’ve had up movement in home prices in recent months. We’re going to build a business and not pull in and out.
Dimon: It’s possible we’re almost done or adding reserves.
Q: Meredith Whitney: Effect of mortgage mods.
A: Hopefully the new mods — which actually involve reducing principle — work well, but it’s too early to tell.
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