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UPDATE 3-JPMorgan sees card losses near 9 pct this quarter

Wed May 27, 2009 11:06pm IST
 
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* JPMorgan sees card losses nearing 9 pct in Q2

* Sees $700-$750 mln pretax FDIC charge

* Sees $500 mln cost from credit card law changes

* Eyes early TARP repayment; hopes to raise div

* JPMorgan shares down 5 cents (Adds JPMorgan CEO comments)

NEW YORK, May 27 (Reuters) - JPMorgan Chase & Co's (JPM.N: Quote, Profile, Research) credit card losses will near 9 percent of its card portfolio in the second quarter and might rise even further if unemployment increased, Chief Executive Jamie Dimon said, after earlier saying card losses "could" hit that level.

The second-largest U.S. bank is also looking to repay its $25 billion of U.S. government bailout funds "as soon as possible" and hopes to raise its recently lowered dividend as early as late this year "if we're lucky" -- provided conditions improve, Dimon said.

Speaking at a Sanford C. Bernstein conference, Dimon said home lending losses over the next several quarters will be as high as $1.4 billion in home-equity, $500 million in prime mortgage and $375 million to $475 million in subprime mortgage.

JPMorgan's investment banking unit seems to be "OK" so far this quarter, Dimon added.  Continued...

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