JPMorgan Chase announced its second-quarter earnings on Thursday, July 17. Though its net income for the quarter fell 53% to $2.0 billion from $4.2 billion in 2007, analysts were expecting a sharper decline. JPMorgan's CEO did emphasize that deterioration in the housing market would continue to impact the value of the company's mortgage portfolio. Regardless, shares of JPM rose as much as 13% during the trading day.
First talks of a Bail Out for Freddie and Fannie surface
JP Morgan reported its first-quarter earnings for 2008 on Wednesday, April 16. Though profit fell to $2.37 billion from $4.78 billion in the same quarter in 2007, this beat most expectations, sending its stock price higher throughout the day.
In response to outcries from Bear Stearns shareholders, JP Morgan raised its buyout offer to $10 per share from the original price of $2. This move was intended to appease Bear shareholders and ensure that the deal went through unchallenged.
On Sunday, March 16th, JPMorgan Chase announced that it had struck a U.S. Treasury-backed deal to purchase Bear Stearns for $2 per share. This news came after a flurry of market speculation and customer withdrawals nearly eliminated Bear's liquidity and caused its stock price to plunge.
On February 4th, JP Morgan Chase, Citigroup, and Morgan Stanley stated that they would put into effect a set of "Carbon Principles" by which they would give investment priority to clean energy groups, and force any company planning to build coal-powered plants to show how they would deal with the carbon dioxide pollution in order to get investment money.
An analyst at Goldman Sachs lowered his target price for JP Morgan's stock to $46 from $51.
After Merrill's $7.9B in write offs on further sub prime problems and Citi's $4B write off at the end of the week all banks traded down on fears of unknown asset quality.
A large stock market sell-off in Shanghai had repercussions around the financial world, including in the
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