Wall St. Brief: JPMorgan’s Earnings Trick, RIM Slashes and Burns
JPMorgan (NYSE:JPM) unloaded $25 billion of profitable securities to increase its second quarter earnings after the huge losses from its Chief Investment Office. CEO Jamie Dimon said earlier in the month that the bank sold corporate bonds and other securities, seeing $1 billion in profits that will help counterbalance the $2 billion-plus in losses. From this, JPMorgan won’t have to report as large of an earnings hit for its second quarter, according to Reuters.
From its restructuring, Research In Motion (NASDAQ:RIMM) will have corporate-wide layoffs that could affect at least 2,000 employees, reported The Globe & Mail reports. With its 16,500 employees, down from its height of 20,000, the company will announce its plans around June 1 but it has already been conducting some layoffs. The cuts could hit 6,000, according to Reuters.
Panasonic (NYSE:PC) is also mulling layoffs and considering a restructuring of its operations. The Tokyo marketplace took the news well and shares jumped 3.9 percent. In the last fiscal year, the company cut 36,000 jobs.
In April, Citigroup (NYSE:C) got rid of its panel responsible for overseeing the disposal of toxic and unwanted assets confirmed a corporate spokesman. At the time, around $200 billion of these assets were still in Citi Holdings, a decline from $600 billion when the unit had been created after the bank almost collapsed in 2008.
Federal investigators are reviewing if BP (NYSE:BP) representatives lied to Congress when they gave oil estimates of leaking after the Deepwater Horizon disaster and whether or not engineers attempted to withhold data, reported Reuters. The investigations could lead to more criminal charges.