JP Morgan, perhaps sensing shifting political wind, will refinance mortgages
Posted by: in HousingFiled under: JPMorgan Chase (JPM), Politics, Presidential elections, Housing, Financial Crisis
It’s been said that the grace that Joe DiMaggio, The Yankee Clipper, exhibited was so encompassing that he seemed to move before the crack of the bat, to be perfectly positioned for an outfield catch. And of course hockey’s Wayne Gretzky’s greatness stemmed in massive part from his uncanny capability to always skate to where the puck would be, not to where it was. There are advantages to being one step ahead of the game.
JP Morgan Chase’s decision to alter the terms of $70 billion in mortgages, represents as much a political calculation as an economic one, so states economist Richard Felson.
“One can interpret the action as JP Morgan thinking two steps ahead,” Felson stated. “From a strictly economic standpoint, it looks premature and high-priced. From a political standpoint, however, it looks quite prudent.” JP Morgan’s (NYSE: JPM) shares fell 97 cents to $40.85 in Monday morning trading.
That’s because Democrats in Tuesday’s U.S. election are likely to rack-up seat gains in the House and Senate. U.S. Sen. Barack Obama, D-Illinois, also leads U.S. Sen. John McCain, R-Arizona, in the U.S. Presidential race. Felson stated the small chance that Democrats could achieve large majorities in the House and Senate might have prompted JP Morgan “to leave before the crack of bat,” from a mortgage issue standpoint.
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JP Morgan, perhaps sensing shifting political wind, will refinance mortgages originally appeared on BloggingStocks on Mon, 03 Nov 2008 11:35:00 EST. Please see our terms for use of feeds.
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