Wall Street Journal (02/28/08) P. C2
J.P. Morgan Chase reports a surge in charge-offs for home-equity loans to $564 million last year from $143 million the prior year. In the 2007 fourth quarter by itself, charge-offs soared more than 65 percent to $248 million from $150 million during the previous three-month period. J.P. Morgan Chase CFO Mike Cavanah predicts a jump in home-equity charge-offs to $450 million in the first quarter of this year, forcing the company to dramatically bolster reserves. The company's net charge-off rate rose to 0.62 percent in 2007 from 0.18 percent in 2006, hitting 1.05 percent in the fourth quarter.
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