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Breakingviews: Dimon's next dilemma

Tuesday, January 14, 2014 - 03:15

Jan 14 - Jeff Goldfarb and Antony Currie discuss how another drop in core earnings is replacing legal issues as the JPMorgan CEO's next battle.

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JPMorgan kicked off bank earnings this season today. And how -- get past all the oddities or some troubling signs for Wall Street and maybe even bigger ones for Jamie Dimon. -- -- walk us through what happened well. I say you don't have a fair few on it does indeed go gains on sales of visa Chang has -- same building not losses from. All of this -- some of the legal expenses etc. I kind of rebellion those that. -- miss an accounting issues as well they have -- to fix and late -- still tax getting sick ship pulled it out. And that pretax pre provision earnings Benson and his core earnings it actually felt. And they full and full out the past five courses so I mean this is awesome and it's just going on -- notable Wells Fargo losses got declining. -- as well not look quite as -- in the district but it's. It's happening better what every other parts of the court it's a little bit people looking at is that fixed income trading which is a suburban flatten out for a few years it feels like we're hitting like a normal -- number there. Which is not a great number night that when you look I don't people were expected exactly is not a great number and -- and organ and the likes of B of -- and city had a -- Bennett time -- than. Then that is the fuel guys like it like moment stunning Goldman Sachs could think they've got other businesses -- lending. Whether it's tragic marriage when they can get bit of extra -- trees the hells yes. It's pretty flat and that's and I used to be the big revenue spent. In the process looks -- the reason regulations having battles that people trip investors just a bit more ominous sight and and on the equity side on the other hand it's a good sign for JPMorgan might be a bad sign for the rest of Wall Street maybe yeah I mean there's up a lot of business and that again coming -- and writing especially them very well in and trading I think was a bit little bits that is pulled within -- -- happy. BS that you can -- looking through eagle and you have some bank kind of movement that still it shouldn't have 15% of its own acting which is preakness. But people still seem concerned about whether banks going with -- she's -- a target a particular has been hit public image was. And and the pocketbook in terms of you know -- decision Asia and -- why did the Sox really yet it they take treatment -- -- -- legal hits over the past he has. And it's all very well -- -- movement keeps saying one of the reasons why we wanna keep diamond and mom and -- probes. Is the parent does revoked and yes it's true if you look at various numbers deposit growth was great last year they got a pretty good share of lending. You know they they have an overall return on equity numbers don't negatively yeah. The issue I think the issue is it's more that when you think a bank banks has potential Christ is the reason what have we seen them play in the policy is -- Protestants -- an immigrant. We could core earnings and that's took which means the focus now has to be a how'd you can't. More cost out. If those earnings gritty on gonna drive. And yet -- smoking is as good as that as anyone else butts off keeping threat faced with all of these legally she's over the past the -- and now people might the effects of business. If the recordings keeps on dropping then maybe Jamie -- as the need be more exposed to because of the history. -- if she stands on its contestants aren't we will of course keep an eye on him and his competitors. As bankers roll out this week and we'll be back with more breaking news to mark.

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Breakingviews: Dimon's next dilemma

Tuesday, January 14, 2014 - 03:15