Skip to main content

Opening Bell: 01.15.09

Dimon Not A Fan Of 2009 (FT)
You can listen to the J.P. Morgan webcast (requires registration) at 7:45.
Some highlights from the 4Q Earnings Release:
* $2.4B Loss in IB
* In Card Services, "Net interest income was $4.3 billion, up $1.2 billion, or 38%, from the prior year, driven by the impact of the Washington Mutual transaction, higher average managed loan balances, and wider loan spreads."
* Retail banking reported a Net Income of $1.0B, up 85%
* "Checking accounts totaled 24.5 million, including 12.6 million attributable to the Washington Mutual transaction, an increase of 13.7 million, or 126%."
* "Average total deposits grew to $339.8 billion, including $126.3 billion attributable to the Washington Mutual transaction, an increase of $131.4 billion, or 63%."
* "Average mortgage loans were $150.0 billion, up $105.5 billion, or 237%, due to the Washington Mutual transaction. Mortgage loan originations were $28.1 billion, down 30% from the prior year and down 25% from the prior quarter."
* "Total third-party mortgage loans serviced were $1.2 trillion, an increase of $557.9 billion, or 91%, predominantly due to the Washington Mutual transaction."
* Commercial banking showed a Net Income of $480MM.
* AUM $1.1T
* AM 4Q Net Revenue $1.66B, Net Income $255MM
* Corporate/PE Net Income was $1.545B
* "The Private Equity portfolio totaled $6.9 billion, compared with $7.2 billion in the prior year and $7.5 billion in the prior quarter. The portfolio represented 5.8% of total stockholders' equity less goodwill, down from 9.2% in the prior year and 7.5% in the prior quarter."
Full supplement.
Also of note: J.P. Morgan's numbers officially put Citi into "Bitch Bank" status. Perhaps you should consider adopting some rules from the Peruvian legal system into your atmosphere Mr. Pandit.
ECB Lowers Rate 50bps (Bloomberg)
Move along, move along: nothing to see here.
Lehman's Cash Position Improving, Despite Bankruptcy (WSJ)
This would be funny if it didn't still hurt:
"Lehman Brothers Holdings Inc. and numerous U.S. affiliates have increased their cash balance to about $6 billion since falling into bankruptcy protection in September, when the companies had $3.3 billion, according to Lehman advisers."
Chavez Reopens Oil Bids To The Evil West (NYT)
"[F]aced with the plunge in prices and a decline in domestic production, senior officials have begun soliciting bids from some of the largest Western oil companies in recent weeks -- including Chevron, Royal Dutch/Shell and Total of France -- promising them access to some of the world's largest petroleum reserves, according to energy executives and industry consultants here."
ICE Emerging In Bid For CDS Clearinghouse (Bloomberg)
"Analysts at Morgan Stanley and CreditSights Inc. said this week that Atlanta-based Intercontinental, also known as ICE, will likely be the industry choice to back the contracts because of its partnership with Goldman Sachs Group Inc.,JPMorgan Chase & Co. and seven other banks that account for over 80 percent of the trading. A clearinghouse may earn as much as $400 million in annual revenue, according to Keefe Bruyette & Woods Inc."
ICE's biggest competition in the bid for CDS supremacy was the CME.

Luxembourg Court Holds UBS Responsible For $39.4MM Madoff Loss (Reuters)
UBS held the fund traded by "Oddo", who liquidated their holdings in Madoff's personal checking account but never received the proceeds. The ruling is effectively ordering UBS to settle the trade.
Google Cuts 100 Recruiters (WSJ)
It's likely we'll see a bit of downsizing in IT over the next months; there's a legitimate question as to how Google will do given the Economic cycle.
I've Stopped Caring About Chrysler (Reuters)
"Chrysler LLC said on Wednesday it would not sell off brands like Jeep or any U.S. assembly plants, but hoped to sell equipment used to make the once-popular PT Cruiser as it works to shore up its cash position after a $4 billion government bailout."