The Latest On The Market Turmoil

The Financial Times reports that JPMorgan Chase's first-quarter profits came in 50% down at $2.4bn, as it marked down $2.6bn in leveraged lending and mortgage assets and $2.5bn in increased provisions to cover expected losses in its consumer finance division. The investment banking division lost $87m in the quarter, compared to the profit of $1.5bn it posted in the same period last year.

Although the firm's return on equity fell from 17% (Q1 2007) to 8%, and writedowns now total over $10bn in the last 15 months or so, most were happy with the firm's first-quarter earnings. Bloomberg quotes Charles Bobrinskoy, vice chairman of Ariel Capital Management, who said: 'In this environment, being able to post earnings as they did today is, I think, all-in good news'.

CEO Jamie Dimon said that current market conditions 'have affected, and are likely to continue to negatively impact, our firm's credit losses, overall business volumes and earnings - possibly through the remainder of the year, or longer'.

Bloomberg reports, however, that Lehman Brothers CEO Richard Fuld told shareholders at his firm's annual meeting in New York this week that, although the market remains 'challenging', 'the worst is behind us'.

Reuters reports that accounting firm Deloitte is doing a brisk business snapping up the most receivership mandates for SIVs. The firm has now been appointed receiver of Golden Key, an SIV set-up by Barclays, in addition to Cheyne Finance, Rhinebridge and Whistlejacket.

Finally, Bloomberg reports that shares in State Street fell 9.9% Wednesday, on concerns that the firm will be forced to bail out four mortgage-backed funds and faces losses of around $1.5bn. Fitch Ratings has said that the firm may have to raise capital. First-quarter profits came in up $69% to $530m.