JP Morgan takes a dive by 35%

It seems that none of the banks are immune from the credit crisis, with more and more banks coming out and declaring their losses, well sort of. Today, we saw the JP Morgan declare a loss of 35% as a result of bad housing loans.

The mortgage issue seems to be like a ‘blob’ that just keeps on growing and growing, swallowing the healthy profits of many a bank and institutions alike. More and more people are defaulting on their mortgage payments and this is having a kind of a free for all effect on all the world economies alike. Most of the share markets are all exposed in one form or the other to whatever takes place at Wall Street and this week has clearly shown that.

The jitters in the market is going to go on for some time to come, as we can see from the indices all across Europe and Asia go into a tizzy as soon as the reports of the ‘Wall street shakedown’ reached them.

CEO Jamie Dimon attributed this dismal performance by JP Morgan to the worse than expected results in the home equity front. But at least they can take heart in the fact that their losses are not as bad as that of the Citigroup which is now currently looking at the Middle East for a healthy infusion of cash. 'Let us take heart that we do not have to beg as of yet, we still have the stuff’ must indeed be going through Jamie Dimon’s mind right now!

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Idea cell goes bokners!

The cellular race is hotting up in the Indian subcontinent.Idea cellular recently reported a 259% increase in its net profit for the first quarter ending June 2007.with more and more middle class citizens becoming all the more affluent day by day in India,it is no wonder that most of the top companies are fast making a beeline to sell their products to the Indian shoppers class.they all want a piece of the Indian economy pie.what is more recent reports have come out showing that the Indian middle class is the fastest growing segment in the entire world and it is that very report that has most of the companies salivating right away.
To them,what that means is a golden,nay,diamond opportunity to make mucho dollars.Idea Cellular Limited reported a jump of 259 per cent in its net profit for the first quarter ended June 2007 at Rs 308 crore as compared to the previous corresponding period.Idea ended the quarter with a subscriber base of 16.13 million, adding 2.12 million subscribers during the quarter. The company is awaiting allocation of spectrum to launch operations in the Mumbai and Bihar service areas.with all of this going on,one can only imagine the profits at other cellular companies that have their fingers in the Indian economy pie.like i said.Idea is indeed going bonkers and the other cellular companies are to follow suit very very soon!

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