10-QPeriod: Q1 FY2010

JPMORGAN CHASE & CO Quarterly Report for Q1 Ended Mar 31, 2010

Filed May 10, 2010For Securities:JPMJPM-PCJPM-PDJPM-PKJPM-PLJPM-PMJPM-PJAMJBVYLD

Summary

JPMorgan Chase & Co. (JPM) filed its 10-Q for the period ending March 30, 2010, highlighting significant ongoing legal proceedings and routine corporate disclosures. The company reported on the effectiveness of its disclosure controls and procedures, which were deemed effective by management, including the CEO and CFO. The filing primarily details a wide array of legal matters, many stemming from the acquisition of Bear Stearns and Washington Mutual, as well as other past business dealings. Investors should note the extensive list of litigation, including shareholder derivative suits, class actions related to mortgage-backed securities, municipal derivatives, and auction-rate securities. While many of these are complex and ongoing, the company is actively managing these legal challenges. The report also touches upon share repurchase programs, noting no repurchases in the first quarter of 2010 but a remaining authorization of $6.2 billion for common stock. Overall, the filing provides transparency into the company's legal landscape and corporate governance, with no immediate financial performance indicators directly presented in the provided excerpts.

Financial Highlights

30 data points
Beta

Revenue

$27.67B

Net Income

$3.33B

12.0% Net Margin

EPS (Diluted)

$0.74

Total Assets

$2.14T

Free Cash Flow

$17.39B

Financial Statements
Beta
Revenue$27.67B
Interest Expense$3.13B
Net Income$3.33B
EPS (Basic)$0.75
EPS (Diluted)$0.74
Shares Outstanding (Basic)3.97B
Shares Outstanding (Diluted)3.99B

Key Highlights

  • 1Disclosure controls and procedures were evaluated and found to be effective by senior management.
  • 2Significant ongoing legal proceedings related to the Bear Stearns acquisition, including shareholder and ESOP litigation, are detailed.
  • 3Multiple lawsuits and investigations are ongoing concerning mortgage-backed securities and municipal derivatives.
  • 4Litigation and regulatory investigations related to the auction-rate securities market are being addressed, with some settlements reached.
  • 5JPMorgan Chase is involved in complex litigation concerning the acquisition of Washington Mutual assets, with settlement discussions ongoing.
  • 6No shares of common stock or warrants were repurchased during the first quarter of 2010.
  • 7A remaining authorization of $6.2 billion for common stock repurchases was available as of March 31, 2010.

Frequently Asked Questions

JPMorgan Chase is involved in a substantial number of ongoing legal proceedings. These range from shareholder litigations stemming from past acquisitions (like Bear Stearns and Washington Mutual) to class actions related to mortgage-backed securities, municipal derivatives, and auction-rate securities. While many are complex and carry potential financial implications, the company is actively engaged in managing and resolving these matters, with some reaching settlement or dismissal stages.

No, JPMorgan Chase did not repurchase any shares of its common stock or warrants during the first quarter of 2010. However, a significant authorization remained, with $6.2 billion of capacity available for common stock repurchases as of March 31, 2010.

The provided excerpts of the 10-Q focus heavily on legal proceedings. For a comprehensive understanding of financial risks, investors should refer to the 'Risk Factors' section mentioned on pages 4-10 of the company's 2009 Form 10-K and pages 162-163 of this 10-Q, which would contain detailed disclosures about market risk, credit risk, liquidity risk, and other potential challenges.

JPMorgan Chase's management, including the Chairman and CEO and the CFO, concluded that the company's disclosure controls and procedures were effective as of the end of the reporting period. The company also stated its commitment to maintaining high standards of internal control over financial reporting, while acknowledging their inherent limitations.