The bank benefited in the first quarter from surging debt trading and underwriting revenue. But weak property and job markets are weighing on the bank and it set aside $10 billion to cover losses on credit cards and consumer loans it manages, twice the amount set aide last year. It also warned it might have to reserve even more if the economy worsens.
Despite these difficulties, Dimon said the bank has the money to repay taxpayer funds it received from the
The bank was forced to take the bailout funds in October under the government's Troubled Asset Relief Program."We could pay it back tomorrow," Dimon said on a conference call, adding that the bank is waiting for guidance from the government on when it can do so. Goldman Sachs Group Inc (GS.N) earlier this week raised $5 billion in a stock sale to help pay back the $10 billion it received from the government. Goldman also said it would return the funds when regulators gave the green light.
Dimon said JPMorgan could raise capital if it wanted to, adding that no bank should be allowed to repay the government before his bank. Keeping money received under TARP has become a "scarlet letter" for banks, he said.
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