If Chase had actually bought more than $300 billion in WAMU portfolio loans they wouldn't have a problem. But they didn't buy the loans as explained by New York Judge Shack a few days ago. They just CLAIM it and most Judges accept that as true and the Judge is giving Chase a gift of a mortgage and property in foreclosure when they neither signed anything nor paid anything for WAMU's loans. AND they have sparse information on which loans were sold off into the secondary market but the the FDIC receiver for WAMU admits that it was not quantified but his estimate was $700 Billion.
Add to that the fact that they are claiming WAMU loans on their balance sheet and carrying the bonds of asset pools claiming ownership of the loans and you have a triple dipping into an empty asset pool. At 4.7%, they fall short of the minimum.Deduct the false assets on their balance sheet and the percentage drops to 4.3% ---- meaning the bank should be broken up and resolved. Add the liabilities for over payments due back to investors and borrowers and you end up with under 2.5% --- i.e., worse than the market crash in 2008.
They can hire all the writers they want to plant favorable articles about bank earnings. And they can continue to apply pressure to get this blog out of business. But in the morning I will still exist and their balance sheet will be ugly.
See New York Time s Dealbook: Don't look so surprised that they are lying and that the lies are living through agencies and regulators who are currently accepting these reports with increasing skepticism. ----
QUESTIONS ON JPMORGAN'S CAPITAL On a conference call on Friday, there was one number that JPMorgan Chase's chief financial officer, Marianne Lake, seemed to not want to reveal, DealBook's Peter Eavis writes. The call came after regulators proposed a new leverage ratio rule, in an effort to get large banks to hold capital that meets a certain percentage of assets, plus other risks embedded in their balance sheets. At the JPMorgan parent company, the leverage ratio would effectively have to be 5 percent, while regulators want the ratio to be 6 percent at the banking subsidiaries that are covered by federal deposit insurance, Mr. Eavis writes.
JPMorgan Chase estimated on Friday that it was already close to meeting the 5 percent requirement at its holding company, saying it had enough capital to get to a 4.7 percent leverage ratio there. "Naturally, analysts also wanted to know whether JPMorgan Chase's deposit-gathering subsidiaries, which are far larger than the holding company, were close to meeting the 6 percent requirement," Mr. Eavis writes. But Ms. Lake said she would not disclose the bank leverage ratio, adding that it was lower than at the holding company.