More Bad Decisions by overpaid Exec's

[Oric]

http://www.alternet.org/economy/155392/what_jamie_dimon%27s_$2_billion_dollar_fail_reveal s_about_our_banking_system/

Copy + paste the link

[Ross]

IMO it fails the sniff test .

Given they have not closed out of the losing positions I suspect they
are vulnerable to much heavier future losses and that this news feed
amounts to breaking the news gradually .

While there may be good commercial reasons for not revealing more
about the derivatives involved I think it likely they feel the world
cannot handle the truth .



.

[Sonny]

IMO it fails the sniff test .
Which 'it' do you refer to Ross? Almost all of the article is just stating the facts in that the Bankster controlled Congress is impotent to fix the problem. t

[Ross]

Which 'it' do you refer to Ross?

'It' is the spiel by Jamie Dimon . I suspect the financial outcome
is likely to be much much worse than implied .
( Just my speculation , unsupported by evidence )


.

[Ross]

I have just found similar speculation at ZH .

In P&L terms, by close of Friday, all else equal,
JPM had lost another $2-3 billion on the same trade it had
lost over $2 billion since the beginning of April.
We expect to hear confirmation of this shortly.

http://www.zerohedge.com/news/has-jp...s-losing-trade

[Ross]

I note that 3 days after JPM warns of a $2Billion loss on derivatives
which I understand to be CDS related we have a paper appearing
on ZH which is sourced/leaked from JPM warning that if Greece leaves
the EU it will cost $400 Billion . The timing of this documents release
is of course pure coincidence .

Even more amazing is that the leaked document from JPM should appear
1 day before Greece has to dig deep and provide bond holders with
around $555 Million or face the consequences .

Not that I am suggesting that y'know JPM would ever try their hand
at manipulation .


The JPM document can be found here for those who like a good cry/laugh .
http://www.zerohedge.com/news/jpmorg...ch-400-billion

[penguinzee]

Henhouse, meet fox...

An Ex-LTCM Trader Will Be Overseeing $70 Trillion In Derivatives
http://www.zerohedge.com/news/ex-ltc...on-derivatives

We wish to welcome former LTCM trader, and current TBAC chairman, Matt Zames to his new post as head of the world's biggest, government backstopped prop trading desk, with a hearty and sincere "good luck." Because an ex-LTCMer in charge of ~$70 trillion in derivatives? Why, what can possibly go wrong...

To quote Michael Corleone, "The Higher I Go, The Crookeder It Gets!!!"

Franc (penguinzee)

[leistb]

Down to the Banana Republic....

[Ross]

JPMorgan’s Trading Loss Is Said to Rise at Least 50% higher

The trading losses suffered by JPMorgan Chase have surged in recent days,
surpassing the bank’s initial $2 billion estimate by at least $1 billion,
according to people with knowledge of the losses.

http://dealbook.nytimes.com/2012/05/...t-least-50/?hp

Fairly obviously the entire JPM mega-mess will eventually bite the
dust and $3B is just the pre-show peanuts . Frankly I will be impressed
if JPM last another 18 months .

[Kassy]

Could be 5 billion (dutch news link quoting Wall Street Journal):
http://www.nu.nl/economie/2813600/ve...og-groter.html

ZeroHedge on JPM's bet/position:

http://www.zerohedge.com/news/its-not-over-yet-jpm

[Kassy]

And since it's friday more depressing bank stuff can't hurt (could be a seperate thread then again i'm lured by the title of this one... ~ it's funny because it's true.

MS is losing values faster then JPM:

http://www.forbes.com/sites/halahtou...gan-heres-why/

Who will be the next JPM:
http://www.zerohedge.com/contributed...ll-be-next-jpm

[Kassy]

Presenting JPM's Uber-Prop Trading Desk: Meet The SIO Inside The CIO

http://www.zerohedge.com/news/presen...sio-inside-cio

[Kassy]

A bit of a background:
http://www.zerohedge.com/contributed...gan-whats-fuss

[Ross]

I believe 8Billion is the latest loss estimate ( sorry , cannot remember source ) .

And YOU will now be paying for derivative losses if big players are in
jeopardy .

Little noticed is that on Tuesday, Team Obama took its first formal steps toward putting taxpayers behind Wall Street derivatives trading -- not behind banks that might make mistakes in derivatives markets, but behind the trading itself. Yes, the same crew that rails against the dangers of derivatives is quietly positioning these financial instruments directly above the taxpayer safety net.
Specifically, the law authorizes the Federal Reserve to provide "discount and borrowing privileges" to clearinghouses in emergencies. Traditionally the ability to borrow from the Fed's discount window was reserved for banks, but the new law made clear that a clearinghouse receiving assistance was not required to "be or become a bank or bank holding company." To get help, they only needed to be deemed "systemically important" by the new Financial Stability Oversight Council chaired by the Treasury Secretary.

Source ZH

[Kassy]

http://www.zerohedge.com/contributed...learinghouses-

Here's the link to the ZH piece. Way down there's an interesting link to a piece about drug money.

[Ross]

Great plan , double up on your betting then get the Fed to backstop your possible losses .

NEW YORK (Dow Jones)--J.P. Morgan Chase & Co. (JPM) sold $101.3 billion more long-dated derivatives insuring against defaults by investment-grade companies as of March 31 than it had bought back, according to quarterly data from the Federal Reserve.

The amount of insurance-like credit-default swaps the bank sold was double its $50.2 billion net position at the end of December ...

http://online.wsj.com/article/BT-CO-...25-706718.html