JP Morgan sure to point out it’s giving back to the community
JP Morgan’s PR machine was sure to give a shout out to loan modifications as a counter to the embarrassing amount of riches reported in their third quarter report. The press release of course leads with its eye popping net income of $3.6 billion in the quarter. But before the bank details all the glorious gains in investment banking fees and fixed income, Jamie Dimon takes a moment to say how much the bank is doing for the community.
We recently announced the decision to revamp our overdraft policies to make it easier for customers to have more control over the fees they pay. In addition, our Card Services business has developed new innovative products that enhance the way customers manage their spending and borrowing. We are also aiding communities by working with struggling mortgage customers to modify their loans. We have approved more than 262,000 new trial modifications under the U.S. Making Home Affordable Program and our own modification program, nearly 90% of which include a reduction in payments for the homeowner. Since 2007, we have helped families by initiating 782,000 actions to prevent foreclosure, and we are committed to doing our part to support economic recovery going forward.”
First, the overdraft fees were shameful to begin with, and its doubtful loan modifications would have gotten off the ground without the government pushing it.
The banks are going to work a lot harder than that if they want to manage their pr. Record bonuses this year aren’t going to go over very well with taxpayers who have recently lost their jobs or fear losing them even though their money helped shore up the financial system to begin with.