Why is JP Morgan down so much today?
JP Morgan also filed with the SEC to sell an undisclosed amount of mixed securities from time to time. While that is certainly not unusual, the common thought is that any bank that is selling anything in this market is in trouble, so it took a hit. If you look at the last quarterly report, you will notice that they put quite a bit back as loan loss, from 3.5 last qtr to 5.7B. That is enough to make your quarter look bad. And they are in the same sector as Citi, so you can’t expect to see a big increase. JP Morgan is one of the few big banks that got out of the subprime early on, and doesn’t have exposure to that, just normal exposure to loans.
