Dutifully tracking every rise and fall of the recession on the timeline next to our desk can get a little dull, but we’re always up for good news. And the news is good: JPMorgan Chase just released its third-quarter earnings, and things are looking up.
At Least Someone Is Doing Well
The New York Times reports that the bank exceeded investor expectations with a quarterly increase of 23%, mainly due to improvement in its credit card business and the low interest rates instituted due to federal policy. Granted, JPMorgan was by no means the bank worst hit by the economic collapse, but their recovery hopefully indicates a similar situation for major banks such as Citigroup and Morgan Stanley, which will release their quarterly results in the next few weeks.
Mortgages Are Still A Mess
JPMorgan is putting a temporary delay on its mortgage sales in order to review files in 41 states and correct any issues with the documentation before proceeding with the sales, and is set to lose about $5 billion in its mortgage business. The bank’s CEO has no immediate plans to restore dividend payouts to its investors, and still worries that an after-shock will shake their relatively stable position.
Tentative Glances Forward
Neither the company’s CEO nor CFO felt comfortable predicting sunny days ahead, instead focusing on the immediate problems with foreclosures. Of course, it follows that no one wants to go on record stroking his lucky rabbit’s foot and beaming, as every day brings news of difficulty—whether with setbacks or progress. The mood of CEO Jamie Dimon is described as “cautiously optimistic.” We’ll be sure to note that on the timeline.
Tell us in the comments: Does news of bank recovery make your own timeline, or do you feel disconnected from the large-scale economy?