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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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To: dfwgator

In theory I agree. In practice that will destroy the economy.

We are no longer a place that makes and sells things.


51 posted on 05/10/2012 4:38:03 PM PDT by redgolum ("God is dead" -- Nietzsche. "Nietzsche is dead" -- God.)
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To: Neidermeyer

I do believe I have heard assertions to that effect over the years.


52 posted on 05/10/2012 4:45:32 PM PDT by DuncanWaring (The Lord uses the good ones; the bad ones use the Lord.)
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To: All

This is bad news.. I bank at JP Morgan Chase..


53 posted on 05/10/2012 4:53:14 PM PDT by KevinDavis (The birther movement was started by a 9/11 truther..)
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To: tcrlaf

Oh the media can’t be bothered with news like this, that whole Obama Biden gay thing is goin on...


54 posted on 05/10/2012 4:55:31 PM PDT by Freddd (No PA Engineers)
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To: tcrlaf

Crank up the printing presses. JPM is going to need a large cash infusion.


55 posted on 05/10/2012 5:10:03 PM PDT by Georgia Girl 2 (The only purpose of a pistol is to fight your way back to the rifle you should never have dropped.)
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To: Theoria
"Enter Uncle Ben to the rescue."

A backdoor QE3? OXI!

56 posted on 05/10/2012 5:27:14 PM PDT by StAnDeliver (=)
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To: Georgia Girl 2


57 posted on 05/10/2012 5:29:50 PM PDT by Chode (American Hedonist - *DTOM* -ww- NO Pity for the LAZY)
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To: tcrlaf

4.2 Billion? That sounds so. . quaint... Is that a lot?


58 posted on 05/10/2012 5:35:28 PM PDT by Freedom4US
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To: tcrlaf
"Losses of $4.2 Billion “reasonably possible."

Tip of iceberg. ZeroHedge commenters giving up numbers up to $80B.


59 posted on 05/10/2012 5:35:44 PM PDT by StAnDeliver (=)
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To: tcrlaf

Should this be read as “get your money out of Chase”? I’ve no clue, but have been debating it for a while.


60 posted on 05/10/2012 5:44:19 PM PDT by TheZMan (Obama is without a doubt the worst President ever elected to these United States)
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To: dfwgator

Snort! FOFL!!


61 posted on 05/10/2012 6:13:16 PM PDT by prairiebreeze (Don't be afraid to see what you see. -- Ronald Reagan)
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To: KevinDavis

I’d pull my millions out of there.

Seriously, I change banks.


62 posted on 05/10/2012 6:17:44 PM PDT by unkus (Silence Is Consent)
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To: Chode

At this rate, the Fed might as well cut to the chase and just start distributing printing machines to keep up with the demand for “free money.”


63 posted on 05/10/2012 6:19:58 PM PDT by Repeat Offender (While the wicked stand confounded, call me with Thy Saints surrounded)
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To: dfwgator

That little can is now a 55 gallon drum.


64 posted on 05/10/2012 6:20:20 PM PDT by unkus (Silence Is Consent)
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To: tcrlaf

Don’t forget that Jamie Diamon was huge Obama supporter and bundler and was considered “Obama’ s favorite banker”.
Watch what they do next, it one or all of the following :
- QE 3
- Passing the Volker Rule
- opportunity for Obama to stand up to those much hated bankers

Trust no one.


65 posted on 05/10/2012 6:27:18 PM PDT by PMAS (ABO 2012)
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To: unkus; All

In all fairness I’m quite happy with Chase and I refuse to go to another bank.. Unless somehow the BOA buys out Chase or a different bank buys out Chase.


66 posted on 05/10/2012 6:29:41 PM PDT by KevinDavis (The birther movement was started by a 9/11 truther..)
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To: Repeat Offender
pretty much...
67 posted on 05/10/2012 6:33:49 PM PDT by Chode (American Hedonist - *DTOM* -ww- NO Pity for the LAZY)
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To: dfwgator

I nominate that for post of the day.


68 posted on 05/10/2012 6:55:56 PM PDT by Nik Naym (It's not my fault... I have compulsive smartass disorder.)
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To: taxcontrol

Good analysis.

Between M2M and bundled bad mortgages you have one of the most stupid situations in the world of finance.

You could have millions of dollars of solid property bundled together with a few bad ones. Due to the bad ones no one will buy the bundle. And so its ‘market’ value goes to zero. Though its backed by millions of dollars of hard, real assets that better than cash.

I hope Mr. Sarbanes and Mr. Oxley are proud of their Frankenstein monster.


69 posted on 05/10/2012 7:19:10 PM PDT by bluecat6 ( "A non-denial denial. They doubt our heritage, but they don't say the story is not accurate.")
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To: redgolum
In practice that will destroy the economy.

It's going to get destroyed sooner or later no matter what, and the longer you put off the inevitable the worse it's going to be.

70 posted on 05/10/2012 7:35:22 PM PDT by dfwgator (Don't wake up in a roadside ditch. Get rid of Romney.)
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To: dfwgator

In theory, I agree.

But you have to look at what we allowed to be made. This won’t be a quick crash, with rebuilding following. This will be the end of the Western (and maybe world) economy for a long time. A lot longer than most seem to think.


71 posted on 05/10/2012 8:21:36 PM PDT by redgolum ("God is dead" -- Nietzsche. "Nietzsche is dead" -- God.)
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To: Uncle Ike

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


72 posted on 05/10/2012 9:18:04 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: StAnDeliver

The guys at Zerohedge were on this LAST WEEK, especially after Goldman’s Friday call for another round of QE (Free Taxpayer Money).

They really do front-run the markets, although the doomage gets tiring, at times.


73 posted on 05/10/2012 9:59:20 PM PDT by tcrlaf (Election 2012: THE RAPTURE OF THE DEMOCRATS)
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