jpm earnings preview

jpm is expected to report Q1 earnings before the open tomorrow with the conference call following at 9 ET. current Q1 consensus is for eps of $0.64 on $1.69 billion in revenues. obviously, their acquisition of bsc is the main topic. everyone will want to know what of bsc went to the fed and what jpm is holding, as well as what jpm is planning to do with the bsc prime brokerage business.

there may be a few questions about their level 3 assets as well, if they are growing, investors will want to know why, as that may be a dangerous situation. another important area that is just beginning to get some attention is their credit default swaps. they have a large portion of the outstanding CDSs and some high profile economic voices, including George Soros, are very worried that credit default swaps could become a major problem as its very difficult to know who the counterparties are. there will also be many of the same issues as with many of the other banks, how much are charge offs increasing, what is their loan loss provision, and how do they see the remainder of the year playing out for their banking business and the housing market.