Whoops. The JP Morgan's trading loss was 2.4 billion more then expected
Justacommeman
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Just a little bit outside…………..MJ
NEW YORK (AP) — JPMorgan Chase, the largest bank in the United States, said Friday that its loss from a highly publicized trading blunder had grown to $4.4 billion in the most recent quarter, more than double the bank's original estimate of $2 billion.
The bank also said that it was reducing its net income for the first quarter by $459 million because it had discovered information that "raises questions about the integrity" of values placed on certain trades.
"We don't take it lightly," CEO Jamie Dimon told Wall Street analysts on a conference call. He added: "We're not making light of this error, but we do think it's an isolated event."
Dimon said the bank had closed the division of the bank responsible for the bad trade and moved the remainder of the trading position under its investment banking division.
Overall, JPMorgan said it earned $5 billion, or $1.21 per share, for the second quarter, which covers April through June and includes the bank's disclosure of the trading loss on May 10.
Analysts surveyed by FactSet, a provider of financial data, had expected JPMorgan to earn 76 cents per share. JPMorgan stock was down 49 cents, or 1.4 percent, at $33.55 in premarket trading.
Just three months ago, JPMorgan was viewed as the top American bank, guided by Dimon's steady hand. Since the disclosure of the trading loss, however, that reputation has been eroded.
Dimon, who originally dismissed concerns about the bank's trading as a "tempest in a teapot," appeared before Congress twice to apologize and explain himself, and several government agencies have launched investigations.
Dimon was to speak before Wall Street analysts later Friday.
JPMorgan has lost about 15 percent of its in market value since the loss came to light.
The bank could take back pay from executives in charge of the division where the losses occurred. That procedure is known as a "clawback." It would be the first time JPMorgan exercised such a procedure.
The most likely candidate would be Ina Drew, JPMorgan's chief investment officer, who oversaw the division responsible for the loss and left the bank days after the disclosure. In 2011, her pay package totaled $15 million.
The Wall Street Journal reported Friday that three other employees of the bank tied to the trade, including one who was known as the "London whale," had left the bank.
Under close questioning from lawmakers in June about his own role in setting up the investment division responsible for the mess, Dimon declared: "We made a mistake. I'm absolutely responsible. The buck stops with me."
The trading loss has raised concerns that the biggest banks still pose risks to the U.S. financial system, less than four years after the financial crisis erupted in the fall of 2008.
NEW YORK (AP) — JPMorgan Chase, the largest bank in the United States, said Friday that its loss from a highly publicized trading blunder had grown to $4.4 billion in the most recent quarter, more than double the bank's original estimate of $2 billion.
The bank also said that it was reducing its net income for the first quarter by $459 million because it had discovered information that "raises questions about the integrity" of values placed on certain trades.
"We don't take it lightly," CEO Jamie Dimon told Wall Street analysts on a conference call. He added: "We're not making light of this error, but we do think it's an isolated event."
Dimon said the bank had closed the division of the bank responsible for the bad trade and moved the remainder of the trading position under its investment banking division.
Overall, JPMorgan said it earned $5 billion, or $1.21 per share, for the second quarter, which covers April through June and includes the bank's disclosure of the trading loss on May 10.
Analysts surveyed by FactSet, a provider of financial data, had expected JPMorgan to earn 76 cents per share. JPMorgan stock was down 49 cents, or 1.4 percent, at $33.55 in premarket trading.
Just three months ago, JPMorgan was viewed as the top American bank, guided by Dimon's steady hand. Since the disclosure of the trading loss, however, that reputation has been eroded.
Dimon, who originally dismissed concerns about the bank's trading as a "tempest in a teapot," appeared before Congress twice to apologize and explain himself, and several government agencies have launched investigations.
Dimon was to speak before Wall Street analysts later Friday.
JPMorgan has lost about 15 percent of its in market value since the loss came to light.
The bank could take back pay from executives in charge of the division where the losses occurred. That procedure is known as a "clawback." It would be the first time JPMorgan exercised such a procedure.
The most likely candidate would be Ina Drew, JPMorgan's chief investment officer, who oversaw the division responsible for the loss and left the bank days after the disclosure. In 2011, her pay package totaled $15 million.
The Wall Street Journal reported Friday that three other employees of the bank tied to the trade, including one who was known as the "London whale," had left the bank.
Under close questioning from lawmakers in June about his own role in setting up the investment division responsible for the mess, Dimon declared: "We made a mistake. I'm absolutely responsible. The buck stops with me."
The trading loss has raised concerns that the biggest banks still pose risks to the U.S. financial system, less than four years after the financial crisis erupted in the fall of 2008.
Walker Proof Digital Album
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
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Wouldn't it be fun to be a bug on the wall at JPM? I'd like to rent one of those small drones and do some eavesdropping.
I knew it would happen.
<< <i>Winter is coming. >>
Thanks for the warning Eddard. MJ
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
<< <i>Winter is coming. >>
I love that show!!
<< <i>Winter is coming. >>
New movie coming out "Ina and the Whale," starring Sigorney Weaver and Hugh Grant.
It is a common kingdom-wide idiom in "Game of Thrones", kind of like a medieval "Live long and prosper". They have brutal winters that last for years and years and wonderful summers that also have long periods. "Winter is coming" is (in my opinion) a warning to keep your business taken care of, your stores and supplies fit, your relationships current and to enjoy the summer. I didn't see the miniseries but I read the trilogy. Others may have gotten a different take on it.
Winter is coming.
<< <i>
<< <i>Winter is coming. >>
Quote used a lot from Game of Thrones/Song of Ice & Fire. "Winter is Coming" is the motto of House Stark. The meaning behind these words is one of warning and constant vigilance.
Linkadoodle
Liberty: Parent of Science & Industry
"save your money son, it's going to be a cold winter"
Learned from growing up in the great depression.
His second favorite saying was, "when you have money, the deals find YOU"
JPM's $4.4 BILL trading loss is important, but probably pales in their roles of batting cleanup in 2007-2009. On 2 occasions they
upped their short term interest rate swap book by approx $8-$10 TRILL in one quarter. Then promptly removed it. With the Libor scandal
center stage, this all starts to fit together. JPM = FED = USTreasury. During the first half of 2011 Morgan Stanley bumped their swap book
by a similar amount in a 6 month time frame. That's three $8-$10 TRILL "bumps" via TBTF banks at opportune times (BSC failure, Lehman failure, EU bank crisis).
<< <i>JPMorgan's actions during the 2007 and 2008 financial crisis
JPM's $4.4 BILL trading loss is important, but probably pales in their roles of batting cleanup in 2007-2009. On 2 occasions they
upped their short term interest rate swap book by approx $8-$10 TRILL in one quarter. Then promptly removed it. With the Libor scandal
center stage, this all starts to fit together. JPM = FED = USTreasury. During the first half of 2011 Morgan Stanley bumped their swap book
by a similar amount in a 6 month time frame. That's three $8-$10 TRILL "bumps" via TBTF banks at opportune times (BSC failure, Lehman failure, EU bank crisis). >>
rr, thanks for making what is suppose to be opaque look transparent.
So if the swaps were just "removed", then why cant the other couple hundred trillion?
Knowledge is the enemy of fear
<< <i>
<< <i>Winter is coming. >>
I love that show!!
I insist you read the books. About 900-1000 pages each but you will go wanting. On par with the Dark Tower series by King. MJ
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
<< <i>upped their short term interest rate swap book by approx $8-$10 TRILL in one quarter. Then promptly removed it
So if the swaps were just "removed", then why cant the other couple hundred trillion? >>
Simple, 80% of those $300 TRILLION are in otc interest swaps as well. That's the remaining glue that is holding together the shredded dollar/TBond/SS Titanic. Without the $300 TRILL
in super glue (or stupid glue?) the TBond market would have tanked long ago. While possibly 5-10% of these IR swaps were unwound during the 2008/2009 payouts, they were
soon re-established. They were forced to unwind some of these due to the BSC, AIG, and Lehman failures. But they learned their lesson that a forced failure was not the best way
to unwind them....unless destroying the financial system and yourself is the goal. Since 2009 they have added back all those unwound IR swaps and added more to keep the Ponzi
scheme alive. They have however cut the total CDS pile in about half as well as removing a large % of the MBS pile. But the IR swap pile has yet to be dealt with. In fact, it is just
too big and too gruesome to be dealt with. As Sinclair says, they lost the last opportunity to fix this when Lehman went down. All the slush money pumped into the system back then
can not be efficiently removed. They can add $10 TRILL notional in the short term to boost treasury bond prices while lowering rates whenever needed. And they can remove that
$10 TRILL just as easily as they added it since it was merely a short term fix to change market momentum (as they did in 2007 as the dollar was tanking). If the bankers quickly
unwound those $250 TRILL in IR swaps over a couple of years you could say good buy to TBonds and the TBTF banks. Poof!
Adding $TRILLIONs in IRswaps and then removing them keeps the $250 TRILL base intact. What they won't do is mess with the BASE. They can add to it, but not subtract from it.
Of course, if the tinder box ever ignites accidentally it could indeed self-unwind, making Sept-Nov 2008 look like a non-event in comparison. That would be a pretty nasty couple
of months to a year for the industrialized world.
MJ
Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
<< <i>Adding $TRILLIONs in IRswaps and removing them keeps their $250 TRILL base intact. What they won't do is mess with the BASE. They can add to it, but not subtract from it.
Of course, if the tinder box ever ignites accidentally it could indeed self-unwind, making Sept-Nov 2008 look like a non-event in comparison. That would be a pretty nasty couple
of months to a year for the industrialized world. >>
The important thing is they'd still get their bonuses as the world to which they lit the match burns.
<< <i>I had a girlfriend who left me for a heavy hitter at J.P. Morgan. I hope they both burn in hell and the entire company goes under. >>
Ouch
<< <i>I had a girlfriend who left me for a heavy hitter at J.P. Morgan. I hope they both burn in hell and the entire company goes under. >>
Now I see the reasoning from your other thread. You're 29 years old and there are plenty of fish in the sea. Go git 'em.
Knowledge is the enemy of fear