Posted on 02/26/2009 9:50:48 AM PST by TigerLikesRooster
JPMorgan sees home equity losses and 12,000 WaMu cuts
2 hrs 18 mins ago
NEW YORK (Reuters) – JPMorgan Chase & Co (JPM.N) warned that up to 41 percent of its more credit-worthy home equity borrowers will owe more than their homes are worth by the end of 2010, up from 27 percent at the end of 2008.
At an investor presentation on Thursday, the second-largest U.S. bank said it expects losses of $1 billion to $1.4 billion in each quarter this year from such lower-risk home equity loans because house prices are falling.
/snip
The bank expects a total of 12,000 job cuts from the time the merger was announced. In December it projected 9,200 cuts at the workforce of Washington Mutual alone.
(Excerpt) Read more at news.yahoo.com ...
Ping!
I worked at WaMu for seven months, 2005-2006 and took a layoff offer when the home loan market started to crash. The president of the company was still talking about how they had to “be like Countrywide!”
They were good to me and I have friends from there even now. Too bad, they were a good company to work for.
Well, that’s not good.
Woo Hoo! (Serves ‘em right for those irritating ads)
LOL
The key phrase being “home equity borrowers”. You aren’t supposed to sap equity from your home but in times of dire emergency. This does not include kitchen remodeling, a new SUV or a trip to the Superbowl.
I’m not surprised in the least that massive numbers of people, credit-worthy or not, who drained their home of equity and squandered the fictitious money are now way upside-down on their loans.
I’m not surprised in the least. That is a huge number, however and lots of them will be walking away from their homes or worse, will get a nice Obama cramdown so we end up paying for their European vacation and five-star backyard landscaping with Olympic pool and waterfall.
My branch has cut about a third of the help since JP Morgan took over.
I still think it’s the best bank going.
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