by Calculated Risk on 1/16/2008 08:22:00 AM

From the WSJ: J.P. Morgan Posts 34% Fall in Net On Subprime-Related Write-Downs

J.P. Morgan Chase & Co.'s fourth-quarter net income fell 34% as the company recorded $1.3 billion in markdowns on subprime positions and saw sharply higher credit costs.
...
"We remain extremely cautious as we enter 2008," [Chairman and Chief Executive Jamie Dimon] said. "If the economy weakens substantially from here - for which, as a company, we need to be prepared - it will negatively affect business volumes and drive credit costs higher."

A billion here, a billion there ... even these small write-downs are adding up.