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JPMorgan Chase Clients With Under $100K Unprofitable

Wednesday, February 29, 2012 - 7:21 AMChase Manhattan Bank
From Bloomberg
JPMorgan Chase & Co. (JPM), the largest U.S. bank by assets, said about 70 percent of customers with less than $100,000 in deposits and investments will be unprofitable following regulations that cap lenders’ fees.
Ken TuminKen Tumin5,471 posts since
Nov 29, 2009
Rep Points: 125,600
1. Wednesday, February 29, 2012 - 9:13 AM
I must say, this is quite a biased and twisted report. Of course, consider the source. So much wrong with it, I can't even begin to list it. But for one, Dimon is complaining he can't make any money with the Fed holding interest rates at 0. What bull****! Banks make their moneey on the SPREAD between the interest rate the collect at and the rate at which they lend. The spread is as much now or more than it ever has been! A 3% spread between the savings rate and mortgage rate, as is the case now, is the historic norm!

If Dimon can't make any money now, maybe he just isn't worth the private jet to everywhere and all the other astronomical pay he gets. Maybe he got too used to ever more and more and more unjustified fees and ought to learn how to run a business without gouging and fleecing. If he is worth his pay, he ought to be able to do that. But methinks he has just gotten too fat.
me1004me1004373 posts since
Jan 16, 2010
Rep Points: 2,596
2. Wednesday, February 29, 2012 - 9:21 AM
Chase's statement is a joke!  Those customers probably have the rest of their assets in banks or cus which pay them better savings and CD rates.  Maybe if Chase "gave" a bit more, it would get more than the $100,000 from 70% of their customers, imo.
ApacheApache43 posts since
Dec 5, 2011
Rep Points: 565
3. Friday, March 16, 2012 - 2:49 PM
Yet Chase continues to extend its aggressive $150-200 offer for new clients to open a checking account with just $100. It does require at least $500 monthly direct deposits or $1500 min. bal. to waive a $10 monthly service fee, but such clients would still likely fit what they consider highly "unprofitable."  Yet apparently desirable.
ekatekat75 posts since
Jan 22, 2010
Rep Points: 246