JPMorgan's Trading Loss Is Said to Rise at Least 50% (This Suckfest is only getting worse)

Yahoo Finance ^ | 05/17/12 | By NELSON D. SCHWARTZ and JESSICA SILVER-GREENBERG

[AngelesCrestHighway]

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. When Jamie Dimon, JPMorgan's chief executive, announced the losses last Thursday, he indicated they could double within the next few quarters. But that process has been compressed into four trading days as hedge funds and other investors take advantage of JPMorgan's distress, fueling faster deterioration in the underlying credit market positions held by the bank.

[AngelesCrestHighway]

Will the last investor leaving the market please turn out the lights on Wall Street?

[vikingd00d]

>>Will the last investor leaving the market please turn out the lights on Wall Street?

There haven’t been ‘investors’ in quite some time. Wall Street is all ‘speculators’ now.

[volunbeer]

“Too big to fail” is not working very well is it?

[D-fendr]

Even this increased amount is not large in relationship to the bank - which will still likely post a profit.

They should pay for their performance in the marketplace, take their losses, earn the wrath of customers and shareholders, etc.

There’s no reason for government to even give a damn, and no reason for it to do it’s ‘fixing’ which tends to cause more harm anyway.

[Matchett-PI]

2008
THE RECKONING; Behind Biggest Insurer’s Crisis, A Blind Eye to a Web of Risk
By GRETCHEN MORGENSON
Published: September 28, 2008
http://query.nytimes.com/gst/fullpage.html?res=9A00E6D81F3AF93BA1575AC0A96E9C8B63&ref=gretchenmorgenson

“.....When Mr. Cassano first waded into the derivatives market, his biggest business was selling so-called plain vanilla products like interest rate swaps. Such swaps allow participants to bet on the direction of interest rates and, in theory, insulate themselves from unforeseen financial events.

Ten years ago, a “watershed” moment changed the profile of the derivatives that Mr. Cassano traded, according to a transcript of comments he made at an industry event last year. Derivatives specialists from J. P. Morgan http://topics.nytimes.com/top/news/business/companies/morgan_j_p_chase_and_company/index.html?inline=nyt-org, a leading bank that had many dealings with Mr. Cassano’s unit, came calling with a novel idea.

Morgan proposed the following: A.I.G. should try writing insurance on packages of debt known as “collateralized debt obligations.” C.D.O.’s. were pools of loans sliced into tranches and sold to investors based on the credit quality of the underlying securities. ....”

More from 2008:
http://topics.nytimes.com/top/reference/timestopics/people/m/gretchen_morgenson/index.html?offset=270&s=newest

<>

2012
At JPMorgan, the Ghost of Dinner Parties Past
By GRETCHEN MORGENSON
Published: May 12, 2012
http://www.nytimes.com/2012/05/13/business/jpmorgan-shooting-itself-in-the-foot-fair-game.html?ref=gretchenmorgenson

bttt

[Ratman83]

Well said. IIRC it was 2 billion, now 3 billion, in a part of the company that handled 360 billion in trades, less than 1 percent. MSM making hay for Zero again.

[D-fendr]

It is in line with the regime’s anti-capitalist meme.

To highlight this, look at J.C. Penney. They are making much worse ‘bets’ in the market, losing much more and in much greater danger of doing harm to their shareholders.

Yet no one is calling for regulation of retail outlets.

Also, the billions that JPM lost some one else gained. You cannot legislate out losses in the market and still have a functioning market.

[Ratman83]

Yes they just want to make it all fair. They will take all the money from whoever they can confiscate it from and waste it away.

[MichaelCorleone]

Re: post#7

Very good points. Especially the JCP analogy.

[mench]

I’ve had some terrible experiences with that bank, on a personal and professional level. The prevalent attitude there is a particular form of self-entitlement.

[wally_bert]

I will never ever deal with them again either. They are terrible.