According to Bloomberg, JPMorgan Chase (JPM) said it will put a 90-day hold on foreclosures while it finds ways to make payments easier on $110 billion of distressed mortgages.

The largest US bank by market value, which just 2 weeks ago accepted a $25-billion cash infusion from the government, said it will examine loans and may cut interest rates or principal amounts. It will also open 24 centers to provide counseling in areas with the highest delinquency rates. 

The banks said the program may help 400,000 families with $70 billion in loans over the next 2 years. Already, 250,000 families with $40 billion in mortgages have been helped under existing loan-modification programs.

From the Bull Pen: Financials screamed higher today on this news, but better entries lie ahead. Best-in-breed JPMorgan, on a pullback toward $35-$36, may be an option.

From the Bear Cave: One bearish play mentioned today on the Buzz was the Ultrashort S&P 500 (SDS). One can consider entering this stock as it approaches its 50 DMA, near $80.

Happy Halloween! Be safe and have a great weekend!
 

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