People kind of sensed strong earnings from JPMorgan Chase, and the bank certainly delivered. It generated earnings of 40 cents per share vs. the expected 32 cents. The bank has certainly benefit from a jump in mortgage refinancings and a surge in deposits, which for the moment are outweighing other issues--notably, a $10 billion rise in credit costs, which included a $4 billion bump up to its loan loss reserves. The credit card operation also posted a big loss.

Most importantly, Chase's Tier 1 capital ratio stood at 11.3 percent, reports CNNmoney.com, higher than most of its peers. All this raises the issue of its TARP plans. If Goldman and others start repaying, the bank is well positioned to follow suit. Combined with Wells Fargo's results, we've had two strong earnings reports. But the most worrisome banks have yet to report. 

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