Subprime Crisis Cuts JPMorgan Chase Fourth Quarter Earnings

New York–JPMorgan Chase announced Wednesday that its fourth quarter earnings fell 21 percent due to subprime exposure, The Financial Times reports.Following a $1.3 billion subprime-related writedown, the New York-based financial services firm’s earnings dropped to $3 billion from $3.9 billion last year. Causing concern that the U.S. economy is slowing down even more, JPMorgan also said it saw higher credit costs in the quarter. The credit loss provision in the retail financial services division was $1.1 billion, compared with $162 million the year prior.JPMorgan’s credit costs include a $395 million increase in the allowance for home equity loan losses, the Times said.