Its net income was 527 million against 3

"To be that prepared us that this become much worse, and we do it", said yesterday Jamie Dimon, the CEO of JP Morgan, which presented the results of the Bank us for the third quarter of 2008. Its net income was $ 527 million (against 3.4 billion a year earlier), penalized by a loss of $ 640 million related to the acquisition of Washington Mutual and some 3.6 billion of write-downs of assets. Banking net product (GNP) is also down by 8.5, to $ 14.74 billion. "Given the uncertainty on the capital, real estate markets and the economy in General, it is reasonable to expect results in down in the next few quarters," Jamie Dimon warned.

Optimistic interpretations

Meanwhile, Wells Fargo, is the main shareholder via Berkshire Hathaway, Warren Buffett has recorded a net income down 24, 1.64 billion in the third quarter increased defaults on the mortgage. In contrast, revenues from the establishment of San Francisco grew by 5.4 to $ 10.4 billion. "If you are optimistic, these results confirm that these two banks will be survivors." "They have incurred both a major deterioration in the credit, and the picture is not pretty, but the results are not bad", commented Richard Moroney, Horizon Investment Services LLC, to the Reuters news agency.

"We were surprised by the degradation of the loans to the value of houses", noted Mike Cavanagh, Chief Financial Officer of JPMorgan Chase. Some activities are outputs of the lot as the Investment Bank, which has increased its commissions of 20 in the last quarter. It displays revenues of $ 4 billion to a net income of $ 882 million. Similarly, the "commercial banking" activity registered record revenues, to $ 1.1 billion, with a net income of $ 312 million. However, the asset management is declining, as the activities related to credit cards. The weight of the real estate is still felt on accounts but represents more than 18.6 billion of assets, against 33 billion at June 30. The taking of the US State participation in the capital of JP Morgan, at 25 billion dollars, "will have a very powerful effect." "Washington wants that we need and that is what we are going to do", said Jamie Dimon, even if the high cost of credit weigh on margins.

For its part, Wells Fargo has indicated that it would issue 20 billion of bonds as expected. But has not commented on the injection of capital of State (25 billion), which had tried to oppose its CEO before resignation. He had him also strengthen its provisions for losses, to $ 8 billion. The resumption of Wachovia, stolen in the nose and beard of Citigroup, brings a national network of agencies. But the operation is risky because the Bank has a portfolio of 74 billion of mortgage very concentrated in California, where the capture rate is one of the highest in the country.

With a large part of their activities related to the retail banking and real estate, the two banks will be very exposed to the deterioration of the economic climate. What will make it even more difficult the challenge of integration of their recent acquisitions. "He must be crazy to not be afraid," also commented Jamie Dimon. But they have made the necessary provisions and should be sufficiently capitalized to reflect.