Chase Fourth Quarter Results "Disappointing"

Continued writedowns on mortgage trading positions and leveraged loans totaling $2.9 billion pretax contributed "largely" to "disappointing" fourth quarter 2008 results at JPMorgan Chase, but the company also noted that there also were some positive mortgage-related developments during the period. The company produced $702 million in net income during the quarter, a result chairman and chief executive Jamie Dimon said was "very disappointing" and "driven by a loss in investment banking largely attributable to continued markdowns on leveraged loans and mortgage trading positions, as well as weak trading results." But the company also noted that it received an $854 million after-tax benefit from mortgage servicing risk management and touted more than $100 billion in "safe and sound lending activities" in areas that included home equity and mortgage. It also said it made "significant enhancements to mortgage modification programs" during the fourth quarter.