JP Morgan, Citi, Wells Fargo Blow Out Q4 Results on Lower Credit Loss Reserves

The rich get richer.

Citigroup quarterly profit beats estimates as loan loss provisions slow.

Wells Fargo records surprise quarterly profit

JPMorgan posts big Q4 earnings beat, releases credit reserves amid 'economic uncertainty'

JPM Q4 Results
Revenue (adjusted): $29.2 billion vs. $28.65 billion expected

Earnings per share (adjusted): $3.79 vs. $2.62 per share expected

The largest US bank by assets delivered net income of $12.1 billion, or $3.79 per share, up 42% from a year ago. Those results included $2.9 billion of credit reserve releases, resulting in a 72 cent increase in earnings per share, and boosted by surges in markets revenue and investment banking fees.

The bank reported a net benefit of $1.89 billion in credit reserves, but maintains a reserve topping $30 billion — reflecting what the CEO Jamie Dimon called “significant near term uncertainty” as coronavirus cases surge worldwide.

Credit card holders, people with car loans, student loans, personal loans, mortgages get deferrals (skip payments) with interest tacked on. Shareholders get dividends. Executives get huge bonuses. Landlords get shafted on rents. You get $600.

These banks have been fined billions of dollars since the sub-prime scandal of 2008-09.

Here is a partial list of JP Morgan's fines for criminal activity from 2009-2014. The amounts are staggering.

Where does the money go? Good question. To the government, into a slush fund perhaps, and maybe to pay off crooked legislators, judges, and lobbyists who let them get away with such behavior.

The Federal Reserve, under the CARES Act stimulus bill passed last May, gave the banks carte blanc to underreport their loan loss reserve provisions through December 31, 2020 and allows them to report the accurate amounts gradually, over a period of three years. In some circles, that's called fraud. In the banking universe, it's business as usual.

Soon, it's going to come crashing down upon their heads.

President Trump has declassified Obamagate documents:

Joe Biden cancels inauguration rehersal.

The Plan to Save the World
--Joe M

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