2012-07-14 — cnn.com
JPMorgan appears to have gotten a $2.9 billion boost from changes it made to its loss provisions... Just $600 million of the Whale to go.
Now we get to the more esoteric moves. Mortgage servicing rights... JPMorgan said in the second quarter, due to improved risk management - never mind the whole robo-signing thing - the value of its mortgage servicing rights jumped by $233 million, nearly 10 times the benefit the bank got from the same accounting maneuver a year ago. And we're down to $400 million.
Finally, the bank pulled another classic loss hiding move: it happened sometime else. Just before the bank released its earnings, it announced that it was restating its first quarter earnings. JPMorgan now claims more of the London Whale's trading losses happened in the first quarter, $459 million to be exact - or just slightly more than what Dimon needed to fill the gap - than it earlier thought.
And, voila, with that, the London Whale disappeared from sight, or at least from the horizon of JPMorgan's bottom line.
Comments: Be the first to add a comment
Note: Comments may take a few minutes to show up on this page. If you go to the forum thread, however, you can see them immediately.