The biggest difference between a bank's loan portfolio and its securities portfolio is that the securities portfolio is marked to market. Being a bank is risky business, period.
Friday, May 11, 2012
JPM Historical Net Charge Offs
People seem to be appalled that JPM could have assumed a "massive" $2B loss in its $320B trading portfolio in one quarter. In the context of the amount that the bank has charged off in its $720B loan portfolio over the last dozen quarters, $2B is nothing though. In 1Q10 alone, for example, the bank charged off $8B, or 4.5% of the whole portfolio (annualized). No one seems to talk about how risky a bank's loan portfolio is though...
The biggest difference between a bank's loan portfolio and its securities portfolio is that the securities portfolio is marked to market. Being a bank is risky business, period.
The biggest difference between a bank's loan portfolio and its securities portfolio is that the securities portfolio is marked to market. Being a bank is risky business, period.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment
For compliance reasons, I don't post comments to the site, but I do like hearing from readers and am happy to answer any questions. Feel free to use the comment box to get in touch. Please leave an email address in your comment so that I can write back, or email me directly at Skrisiloff@avondaleam.com.