It's Thursday, October 13, and this is Market Fullry.

I'm Chris Helen.

Jo Ellen joining me in studio today from Motley Fool Inside Value Joe Meger

and from Motley Fool Income Investor James Erlich guys,

thanks for being here.

Thank you, Chris.

We have rumblings about potential deals involving Google,

Yahoo, and AOL, but we are going to start with earnings.

JPMorgan Chase's overall revenue was down 11% compared to a year ago.

Shares down around 6% this morning.

James, what did you make of their quarter?

Well, Chris, J.P. Morgan is sort of the least worst investment banks.

So if they're suffering, this does not bode well, and they're the first report earnings,

by the way. So this is sort of like the first of the big banks.

Yeah, exactly. It is a bad omen for the rest of the banks. the big banks

bank's that's a good distinction to make because there are plenty of

legitimate community banks but the big banks are under a lot more

fire they're all they're cutting a thousand jobs which will help us cut costs in their investment banking unit.

But the real story to me, Chris, is this heinous accounting injustice, abbreviated DVA debt valuation adjustment. Some of their banks use CVA debt valuation adjustments.

Some of their banks use CVA credit value adjustments.

This is from an accounting rule called FAS 159.

I think we're all pretty familiar with that one.

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