JPMorgan, Bank of America Ready for Losses

JPMorgan Chase and Bank of America are expected to disclose losses of about $3 billion in mortgage securities and leveraged loans when they report earnings this month, the Financial Times reported, citing an analyst. JPMorgan is likely to report mark-to-market losses on leveraged loans of about $1.4 billion and an additional $700 million in write-downs of mortgages and mortgage-backed securities, according to Howard Mason, analyst with Sanford Bernstein, the paper reported.

Mason estimated Bank of America will take write-downs of $700 million for leveraged loans and mortgage write-downs of $300 million, the paper said. Other banks have already taken losses on the value of their holdings in mortgage-backed securities and leveraged loans. As mortgages are due to reset this may not be the last of the mortgage blues for many banks and investment houses.

One thought on “JPMorgan, Bank of America Ready for Losses

  1. It could be worse, it could have been a write-down on the scale of Citigroup’s. Basically, all of these firms need to reorganize management a bit, but at the same time I think that the Boards of Directors should stay, as the Boards at all of these firms have an enormous amount of talent and experience in managing various companies in a multitude of industries. JPMorgan http://www.newsvisual.com/newsvisual/2007/10/ties-demonstrat.html and BofA http://www.newsvisual.com/newsvisual/2007/03/bank_of_america.html are perfect examples, as can be evidenced by these interact Knolwedge Maps of their Boards from NewsVisual.

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