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JPM Crashing After It Convenes Emergency Call To Advise Of "Significant Mark-To-Market" Losses
ZEROHEDGE ^ | 5-10-12 | Tyler Durden

Posted on 05/10/2012 2:47:31 PM PDT by tcrlaf

Out of nowehere, JPM announced 40 minutes ago that it would hold an unscheduled 5pm call to coincide with the release of its 10-Q. Rumors were swirling as to why. The reason is as follows:

JPMORGAN SAYS CIO UNIT HAS SIGNIFICANT MARK-TO-MARKET LOSSES - "Fortress balance sheet" at least until Bruno Iskil gets done with it. JPMORGAN SAYS LOSSES ARE IN SYNTHETIC CREDIT PORTFOLIO - but, but, net is NEVER, EVER Gross. JPM WOULD NEED $971M ADDED COLLATERAL IF RATINGS CUT ONE-NOTCH JPM WOULD NEED $1.7B ADDED COLLATERAL IF RATINGS CUT 2 NOTCHES - how about three notches? JPMORGAN: MAY HOLD SOME SYNTHETIC CREDIT POSITIONS LONG TERM - "Level 3 CDS FTW" "As of March 31, 2012, the value of CIO's total AFS securities portfolio exceeded its cost by approximately $8 billion"

As a reminder, the CIO unit is where Bruno Iksil was making $200 billion-sized bets. Basically JPM has suffered massive losses at its CIO group most likely due to its IG/HY positions held by Iksil.

(Excerpt) Read more at zerohedge.com ...


TOPICS:
KEYWORDS: bank; jpmorgam; obama; qe
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WHAT??? How can this be??? They just passed the Fed Stress Test with flying colors?! Who knew those big bets on Greek Bonds might go bad? The EU/FED was going to make everybody good, right?

LORDY, LORDY, PRAISE THE MESSIAH! It's a good thing the Obama economy is so strong, and we won't need QE3! (OOPS)

1 posted on 05/10/2012 2:47:33 PM PDT by tcrlaf
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To: tcrlaf

This will be another AIG type disaster. Our banks will ‘need’ help because European ones owe them. The open market will close up again, because no one trust another for good reason. Enter Uncle Ben to the rescue.


2 posted on 05/10/2012 2:49:56 PM PDT by Theoria (Rush Limbaugh: Ron Paul sounds like an Islamic terrorist)
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To: tcrlaf

Mark to market....LOL!


3 posted on 05/10/2012 2:50:17 PM PDT by stephenjohnbanker (God, family, country, mom, apple pie, the girl next door and a Ford F250 to pull my boat.)
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To: Theoria

Dimon is telegraphing to Bernanke that JPM needs a BILLION DOLLARS more in liquidity (free taxpayer money) if they get down-graded by the ratings agencies because of this.

FIRE UP THE PRINTING PRESSES, here comes QE3!


4 posted on 05/10/2012 2:54:25 PM PDT by tcrlaf (Election 2012: THE RAPTURE OF THE DEMOCRATS)
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To: tcrlaf

keep their filthy mitts out of the taxpayer cookie jar!!!!


5 posted on 05/10/2012 2:54:41 PM PDT by elpadre (AfganistaMr Obama said the goal was to "disrupt, dismantle and defeat al-hereQaeda" and its allies.)
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To: elpadre; All

Details slowly leaking.
Losses of $4.2 Billion “reasonably possible.”

Get ready to pony up, kids! Your future has to save Obama’s election, now!


6 posted on 05/10/2012 2:56:06 PM PDT by tcrlaf (Election 2012: THE RAPTURE OF THE DEMOCRATS)
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To: tcrlaf

Let ‘em die....enough is enough.


7 posted on 05/10/2012 2:56:29 PM PDT by dfwgator (Don't wake up in a roadside ditch. Get rid of Romney.)
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To: stephenjohnbanker

” Mark to market....LOL! “

Heaven forbid that all of the ‘big banks’ carry these assets on their books at their real (liquid) value...

All that honesty would surely bring the whole ‘too big to fail’ system down....

(By the way - doesn’t the FED hold untold billions of these inflated ‘assets’???)


8 posted on 05/10/2012 2:57:15 PM PDT by Uncle Ike (Rope is cheap, and there are lots of trees...)
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To: tcrlaf

How is the SP500 futures market doing right now?


9 posted on 05/10/2012 2:57:16 PM PDT by forgotten man (forgotten man)
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To: tcrlaf
hunh. I had to double check the date on this. I'm sure I expressed marvel that JPM had managed to be a Citi clone without suffering Citi's fate. But that was a long time ago and I gave up on it.

I have a feeling that the Obama admin will say, "drop dead, Jamie!" and that means that Tim can parcel it up to his buddies like they did with Bear.

10 posted on 05/10/2012 2:57:29 PM PDT by the invisib1e hand
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To: Uncle Ike

This has GREEK SWAPS written all over it...
And explains the Goldman-Sachs call for MORE QE on Friday.

To answer your other question, it came out Monday that the FED was holding $177 BILLION in “Other assets”.

TRANSALTION: Stocks the FED has been propping for the last 5 months.


11 posted on 05/10/2012 2:59:38 PM PDT by tcrlaf (Election 2012: THE RAPTURE OF THE DEMOCRATS)
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To: elpadre
keep their filthy mitts out of the taxpayer cookie jar!!!!

keep their filthy obamas out, too.

12 posted on 05/10/2012 3:01:35 PM PDT by dfwgator (Don't wake up in a roadside ditch. Get rid of Romney.)
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To: the invisib1e hand

“I have a feeling that the Obama admin will say, “drop dead, Jamie!””

This is LOSE-LOSE for Obama, no matter which way it goes.

The FED tried has tried to postpone the crash, and to prop things past the election. Doesn’t look like, tonight anyway, that it’s going to work out that way.


13 posted on 05/10/2012 3:01:55 PM PDT by tcrlaf (Election 2012: THE RAPTURE OF THE DEMOCRATS)
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To: tcrlaf

Bfl


14 posted on 05/10/2012 3:02:37 PM PDT by liberalh8ter (If Barack has a memory like a steel trap, why can't he remember what the Constitution says?)
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To: dfwgator

“The Era of Bailouts IS OVER!” Barack Obama, 2010


15 posted on 05/10/2012 3:05:01 PM PDT by tcrlaf (Election 2012: THE RAPTURE OF THE DEMOCRATS)
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To: kalee

bump


16 posted on 05/10/2012 3:06:32 PM PDT by kalee (The offenses we give, we write in the dust; Those we take, we engrave in marble. J Huett 1658)
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To: tcrlaf

Obama’s STASH, baby! We’re all gonna be RICH! Woo-hoo!!!!/sarcasm;)


17 posted on 05/10/2012 3:07:18 PM PDT by Frank_2001
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To: forgotten man
How is the SP500 futures market doing right now?

down 11.4, dow -91, as you know doubt know by now.

Don't get me started on this.

2 bil is a relatively small amount of money for such a huge operation. Can this be the one time that "big harvests [don't] get bigger?"

18 posted on 05/10/2012 3:09:14 PM PDT by the invisib1e hand
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To: Frank_2001

Oh, yeah. Isn’t JPM where they found all of MF Global’s “missing” centi-millions?


19 posted on 05/10/2012 3:10:20 PM PDT by the invisib1e hand
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To: tcrlaf

What’s that about reserve requirements? Oh, you dont have money, you paid out bonuses. Ok, fine. Good for you, but you don’t have money to cover your potential loses?


20 posted on 05/10/2012 3:10:51 PM PDT by Theoria (Rush Limbaugh: Ron Paul sounds like an Islamic terrorist)
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