Related: Still Jerks at JPMorgan
Some things never change.
"JPMorgan Chase loss could reach $7 billion" by Jessica Silver-Greenberg | New York Times, July 14, 2012
JPMorgan Chase disclosed Friday that losses on its botched credit bet could climb to more than $7 billion and that the bank’s traders may have intentionally tried to obscure the full extent of the red ink on the disastrous trades.
I heard $9b, but....
SIGH!!!!!!!!!!!!!!!!!!
Yeah, SOME THINGS NEVER CHANGE!
Mounting concerns about valuing the trades led the company to announce that its earnings for the first quarter were no longer reliable and would be restated....
The revelations left Jamie Dimon, the bank’s chief executive, scrambling for the second time within two months to contain the fallout from the trading debacle....
The possible deceptions came to light in a regulatory filing early Friday just before the bank reported its second-quarter earnings. While the bank posted a profit of nearly $5 billion despite the trading losses of $4.4 billion for the quarter, some analysts and regulators zeroed in on the valuation of the trades....
This is all phony, bullshit fraud so a bunch of greedy fucks can collect a whole lotta loot.
In contrast, investors appeared to accept Dimon’s pledges that the bank had rooted out the problems and could reap record annual profits. They rallied behind the bank, sending its shares up nearly 6 percent, the best among its peers on an overall strong day for American stocks....
Proving the STOCK MARKETS are all a RIGGED FRAUD!
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Yeah, those losses really add up fast overnight:
"JPMorgan says bad trade losses nearly triple to $5.8b" by Pallavi Gogoi | AP Business Writer, July 13, 2012
NEW YORK (AP) —The bank 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....
Investors were also cheered to hear that the bank might resume its plan to buy back its own stock. Dimon said the bank was in discussions with the Federal Reserve and would submit a plan in hopes of buying back stock starting late this year....
The company suspended an earlier plan to buy back $15 billion of its stock after reporting the trading loss.
Looks like a $HELL GAME to ME!!!
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 originally dismissed concerns about the bank’s trading as a ‘‘tempest in a teapot.’’
What a JERK!!!!!!
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The trading loss has raised concerns that the biggest banks still pose risks to the US financial system, less than four years after the financial crisis erupted in the fall of 2008....
So after all the TRILLIONS of DOLLARS in BAILOUT and the rest we are RIGHT BACK WHERE WE STARTED?!!
Arrrrrrrrrrgggggggghhhhhhh!!!!!!!!!!!!!!
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"JPMorgan traders may have sought to conceal losses" by Pallavi Gogoi and Daniel Wagner | AP Business Writer, July 13, 2012
NEW YORK (AP) — The revelation could expose JPMorgan to civil fraud charges. If regulators decide that employee deceptions caused JPMorgan to report inaccurate financial details, they could pursue charges against the employees, the bank or both.
The Justice Department, the Securities and Exchange Commission and international regulators are looking into the loss. The Justice Department and SEC declined comment.
JPMorgan could not necessarily hide behind the actions of its employees. Regulators could decide that its oversight or risk management contributed to the problematic statements....
I suspect a chump change fine will be the end result.
JPMorgan also reported net income for the second quarter, which ended June 30, of $5 billion, far higher than the $3.2 billion that Wall Street analysts were expecting. The bank credited stronger mortgage lending and credit card business....
JPMorgan has more than $1 trillion in customer deposits and more than $700 billion in loans. The chief investment office invests the excess cash in a variety of securities, including government and corporate debt and mortgage-backed securities.
Banks typically build hedging strategies to limit their losses if a trade turns against them. Hedges often involve credit default swaps, essentially insurance contracts that pay out if a given corporate bond goes into default.
See: The LIBOR Looting Scheme
In JPMorgan’s case, instead of offsetting losses, the trade backfired and added to them. The bank apparently thought it had bought too much protection against possible bond defaults, so it hedged its hedge by increasing its risk.
Looks a lot like GAMBLING to ME!
In other words, instead of buying insurance, it was selling insurance. The bank found itself with a pool of investments that were difficult to sell quickly. The drawn-out process of unwinding that portfolio caused JPMorgan’s losses to grow....
Up to $9b now I hear.
Investors were cheered to hear that the bank might resume its plan to buy back its own stock....
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Did you know JPMorgan was the "only major US bank to remain profitable throughout the financial crisis?"
