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On Thursday, JPMorgan Chase (JPM) will report its Q1 earnings. The results will probably be “not horrible.” Which isn’t bad, not to mention horrible.

The reason I mention JPM is that the bank hasn’t reported a single money-losing quarter since the crisis broke. That puts them in small company. In fact, the bank has beaten estimates fairly consistently. They were also very fortunate to gain both Bear Stearns and WaMu at very good prices.

As you might expect, the shares have responded very favorably. JPM has more than doubled from its March low. So I have to wonder, is JPMorgan Chase now too big to fail?

The bank’s market cap is well over $120 billion. Their assets are over $2.1 trillion. The bank has been smart and lucky so now it’s gotten very big. All of the same arguments about the size Citigroup apply to JPM, so where’s the outcry?

Just asking....

Posted by edelfenbein at April 14, 2009 12:22 PM