Analysts are ratcheting up the expected losses in JP Morgan’s CIO division. This isn’t much of a surprise to me given the difficult market conditions and the types of trades that they were. Even under this larger loss scenario the company is expected to post earnings of $.65 a share in the quarter. Obviously JP Morgan is capable of producing much better but it does show just how over dramatized this whole thing is. The stock has dropped to around $30 so it is far more attractive than it was in the mid $40’s. I’ll be curious to see if JP Morgan started the stock buyback plan again or if they have held off. If they aren’t taking advantage of this opportunity than it would be really disappointing for JPM shareholders. I think the stock is really attractive at these levels.
http://www.bloomberg.com/news/2012-06-04/jpmorgan-faces-4-2-billion-trading-loss-isi-forecasts.html