- "It is a tough rule," says JPMorgan (NYSE:JPM) CFO Marianne Lake, speaking about the Volcker rule on the earnings call. "The regulators have laid out stringent standards," but they're not expected to have a material impact on the bank's results.
- Poor mortgage banking results aren't expected to turn soon as management guides for another decline in production in Q1.
- First there was the DVA, now there's the FVA. The bank in Q4 implemented a Funding Valuation Adjustment for its OTC derivatives and structured notes, "reflecting an industry migration towards incorporating the cost or benefit of unsecured funding into valuations." It resulted in a $1.5B charge in Q4 (against total net income of $5.3B, or $1.30 per share).
- Among the quarter's bright spots is asset management: Net inflows of $23B for the Q brought AUM to $1,598T, up 12% Y/Y. Net income for the unit of $568M is up 17.6% from a year ago.
- From the pre-call call with reporters: Asked if he's considered resigning or been pressured to do so, Jamie Dimon responds, "No, no, it's all up to the board" ... "Which you chair," responded the reporter.
- Presentation slides
- Earlier JPM earnings coverage
- Shares +0.6% premarket