Skip to comments.JPM Crashing After It Convenes Emergency Call To Advise Of "Significant Mark-To-Market" Losses
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 ...
LORDY, LORDY, PRAISE THE MESSIAH! It's a good thing the Obama economy is so strong, and we won't need QE3! (OOPS)
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.
Mark to market....LOL!
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!
keep their filthy mitts out of the taxpayer cookie jar!!!!
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!
Let ‘em die....enough is enough.
” 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’???)
How is the SP500 futures market doing right now?
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.
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.
keep their filthy obamas out, too.
“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.
“The Era of Bailouts IS OVER!” Barack Obama, 2010
Obama’s STASH, baby! We’re all gonna be RICH! Woo-hoo!!!!/sarcasm;)
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?"
Oh, yeah. Isn’t JPM where they found all of MF Global’s “missing” centi-millions?
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?