J.P. Morgan Chase expects to eliminate 14,000 jobs, including 2,000 from its investment banking operations and 12,000 from its Washington Mutual unit, the company told investors last week.
The bank is seeking to cut costs as the deepening recession fuels unemployment and loan losses. The bank anticipates quarterly losses this year of $1 billion to $1.4 billion just on its home equity loans to more creditworthy borrowers. Those figures exclude loans Chase picked up in its purchase last September of the failed banking operations of Washington Mutual.
The bank expects up to 41 percent of these borrowers will be underwater, or owing more on their homes than the homes are worth, at the end of 2010, up from 27 percent at the end of last year.
And the downward spiral continues. More underwaters. More job losses. More write-offs.
Do tears falling onto granite counter-tops sound any different from those falling onto old Formica? No wonder they call it a depression - a perfect graphical and emotional description of the despair!