J.P. Morgan Chase and Bank of America can now join the list of major investment banks taking a hefty write-down in their quarterly results. The 2 firms are expected to report a total, combined write-down of approximately $3 billion related to losses suffered on subprime-mortgage backed investments and the ensuing credit-market crunch.
Specifically, Sanford Bernstein analyst Howard Mason predicts that JPM will write down about $2.1 billion and BAC about $1 billion, bringing the total announced write-down to more than $20 billion. Major banking names like Citigroup (C), Deutsche Bank (DB), UBS (UBS), Merrill Lynch (MER), and Washington Mutual (WM) already stepped up to report their own losses during the past couple weeks.
In other BAC news, the company joins a group of 15 firms being censured and fined by NYSE Regulations due to prospectus-delivery failures, along with other operation and supervisory violations. The largest fines were levied against Citigroup, Deutsche Bank, and Lehman Brothers (LEH).
Today's trading has BAC and JPM bucking the trend of their write-down companions, with both firms suffering fractional losses. Other banking names soared higher after announcing their subprime-related write-downs, as many investors expect this to be something of a kitchen-sink quarter where all the bad news from this summer's credit-market crisis will come to light.