Is JPMorgan Insolvent?
According to yahoo finance, JPMorgan has a book value of ~$140B. According to their latest filings, JPM has 21.2 billion of subprime loans on their balance sheets as assets, 40.2 billion of option arm loans, and 140.3 billion of home equity loans. As we all know, subprime loans are garbage. However, option arm loans are as well read this for proof, and the "equity" that was collateral for those home equity loans has disappeared to a large degree as well. 40.2+21.2+140.3 billion is 201.7 billion which exceeds their entire shareholder equity by a wide margin. Assuming that there are other write-offs coming in other parts of their balance sheet such as commercial real estate, one must seriously ask if JPM is insolvent.
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