JP Morgan Chase & Co. has had losses of $1.5 billion.
From Bloomberg:
JPMorgan Chase & Co. has had losses of $1.5 billion on mortgage-backed assets so far this quarter as the U.S. housing slump deepened amid turmoil in credit markets.
....
``The global credit market hasn't much improved,'' said Tim Leung, who helps manage about $1.5 billion at IG Investment Ltd. in Hong Kong. ``The risk aversion to lending to financial institutions is still high and everyone is still very cautious.''
Risk aversion except for the Fed. They just keep increasing the loans.
It expects the global economy ``to continue to be weak, for capital markets to remain under stress and for a continued decline in U.S. housing prices,'' the filing said. ``These factors have affected, and are likely to continue to adversely impact, the firm's credit losses, overall business volumes and earnings.''
Once again, they are looking for a continued decline in housing. Unlike the analysts who see a housing bottom.
UBS
In other news, UBS will split Investment bank from Wealth management. So much for one-stop banking model. UBS's strong poing was it's Wealth management unit. Investment Bank's problem were dragging down wealth management. It will be interesting to see if they can stop the slide.
The bank reported a second-quarter net loss of 358 million Swiss francs ($329 million), compared with a 5.55 billion-franc profit a year before. About 3.8 billion francs in tax credits cushioned the loss.
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Clients at UBS's wealth management units withdrew a net 17.3 billion francs in the quarter, triple the 5 billion-franc estimate of analysts. The divisions, which oversaw 1.86 trillion francs at the end of June, attracted an average of 37.9 billion francs in each quarter last year. Net outflows from all the bank's money management units totaled 43.8 billion francs.
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