| J P Morgan loses 2 Billon in six weeks | |
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| Tweet Topic Started: May 10 2012, 04:50 PM (925 Views) | |
| Baldo | May 20 2012, 01:58 PM Post #31 |
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Like others I have been increasingly worried about the state of our economy & its relationship to the money centers on Wall Street, London, DC, and the halls of the European Parliament. Again I am no expert, but its seems to me the business of Wall Street has become capital creation rather than economic prosperity through the building of our economic base. It's profit for profit sake and that is not the cornerstone of a lasting economy The continued decline of our National Labor Participation rate does not bode well for the future. Instead Wall Street appears to focus solely on profit through a churning of complex derivatives. High Frequency Trading dominates the market. Stocks are bought & sold repeatedly on smaller fractions of time and movement. Electronic Trading Desks at Financial Institions fight to get close to the exchanges' physical transaction location to gain a a few mill-seconds in trade execution. I believe Nassim Taleb has it right. The Black Swan is really the probably that an event will happen that is unforeseen and thus not understood. I am troubled by the idea that the Fed can create huge amounts of money and that some politicians don't think it is a problem. In some ways science historian James Burke made this case with technology back in 1978. The inter-connectivity comes at a risk & the Global Economy has it risks which I don't think are understood. Remember how "out of the blue" real estate collapsed along with the stock market? When "it" happens, and it will most likely happen as Nassim Taleb says, and it did in 2008. I want a list of those who led us down the path. Baldo Dunking Chairs will be there ready to capitalize and maximize profits Edited by Baldo, May 20 2012, 01:59 PM.
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| kbp | May 20 2012, 02:20 PM Post #32 |
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BEn has shown us he has no worries about going broke ...though I question what his deposits will be worth! |
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| Baldo | May 22 2012, 01:22 AM Post #33 |
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Double trouble at JP Morgan: trader's losses could exceed $7bn US bank has cancelled its plan for a share buyback in the wake of the growing crisis The crisis at JP Morgan escalated yesterday as it emerged its trading losses in London could rise to as much as $7bn (£4.5bn) and the US bank cancelled a share buyback. Fears were growing that the losses could spiral from an initial $2bn, which was declared on 10 May, as JP Morgan struggles to unwind the massive bets made by the so-called "London Whale" trader Bruno Iksil. In a further blow, chairman and chief executive Jamie Dimon has suspended plans to use the US bank's own funds to buy back $15bn worth of shares. Buybacks are a popular way for firms to use up cash sitting on the balance sheet and prop up the share price. JP Morgan shares tumbled 82 cents or 2.45 per cent to a new six month-low of $32.67. The bank's value has fallen by a quarter in a year. Mr Dimon insisted that the decision to cancel the buyback was not linked to fears about a possible increase in losses. "You should not interpret this as anything about the size of the loss," he said. But as doubts persisted that the crisis has not yet abated, speculation was mounting that Mr Dimon could be forced to give up at least one of his dual boardroom roles. He has previously been regarded as the savviest banker on Wall Street as JP Morgan survived the credit crunch without a bailout....snipped http://www.independent.co.uk/news/world/americas/double-trouble-at-jp-morgan-traders-losses-could-exceed-7bn-7771347.html Zerohedge is speculating it could be even higher |
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| kbp | May 22 2012, 07:08 AM Post #34 |
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...suspended plans to use the US bank's own funds to buy back $15bn worth of shares. Buybacks are a popular way for firms to use up cash sitting on the balance sheet Crank up the press Ben, we need more liquidity. Never mind, only Barry needs it. |
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| Baldo | May 30 2012, 07:40 PM Post #35 |
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The problem just might have become much worse for Jamie Dimon & JP Morgan JPMorgan CIO Swaps Pricing Said to Differ From Bank The JPMorgan Chase & Co. (JPM) unit responsible for at least $2 billion in losses on credit derivatives was valuing some of its trades at prices that differed from those of its investment bank, according to people familiar with the matter. The discrepancy between prices used by the chief investment office and JPMorgan’s credit-swaps dealer, the biggest in the U.S., may have obscured by hundreds of millions of dollars the magnitude of the loss before it was disclosed May 10, said one of the people, who asked not to be identified because they aren’t authorized to discuss the matter. “I’ve never run into anything like that,” said Sanford C. Bernstein & Co.’s Brad Hintz in New York, ranked by Institutional Investor magazine as the top analyst covering brokerage firms. “That’s why you have a centralized accounting group that’s comparing marks” between different parts of the bank “to make sure you don’t have any outliers,” said the former chief financial officer of Lehman Brothers Holdings Inc. The biggest U.S. bank by assets is facing regulatory scrutiny and criminal probes over losses in the CIO, which Chief Executive Officer Jamie Dimon pushed in recent years to make bigger and riskier bets with the bank’s money. The loss, which Dimon said stemmed from positions that were “poorly monitored,” prompted calls from Congress for tighter bank regulation and triggered criminal investigations by the U.S. Department of Justice and Federal Bureau of Investigation...snipped http://www.bloomberg.com/news/2012-05-30/jpmorgan-cio-swaps-pricing-said-to-differ-from-investment-bank.html |
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| kbp | May 30 2012, 08:03 PM Post #36 |
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Leaves me. myself, and I to be trusted. |
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| Baldo | May 30 2012, 08:20 PM Post #37 |
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Yeah! We are talking about BIG Wall Street Firms.. JPMorgan.. MF Global... Citibank losses... There was a time you expected honesty, integrity, competency, and financial responsibility from Wall Street. Silly me! |
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