Professor Elam

Monday July  16 2012

JP Morgan managed to hit its projected earnings to the penny, even after the Whale trading losses ballooned form $2 B upwards. How did they do that, this article answers the question

Oh one  third is resuced by not having to pay taxes on the loss, tax benefit it is called in the accounting book

Lower the loss ereserves, and reach into the cookie jar for claw back others

Write up 'mortgage servicing rights'

And allocate the loss to other periods re stating the first quarter earnings, which of course are now old news anyway

This students is how earnings are managed.