JPMorgan Chase Loses $2 Billion On Bad Bets

Gee, let's put this into perspective...

This was just SIX DAYS AGO:

Jamie Dimon Defends America's Least-Loved Minority: Bankers

Jamie Dimon would like you all to stop discriminating against banks now.

The golden sun-god CEO of America's greatest bank, JPMorgan Chase, has become the last line of defense for the country's least-understood, least-loved minority, Banker-Americans.

His defining moment, his "I Have A Dream" speech, if you will (and you won't), came on Thursday at the University of Rochester's New York City Conference, where he was given an "Executive of the Year" award and appropriately introduced as a "CEO statesman," according to the American Banker.

There Dimon expressed wistful sorrow at the way the government has wrecked the economy and kept job growth horrible, simply because it can't stop getting in the way of America's banks, constantly pestering them about petty things like "regulation" and "solvency" and "where did all of our money go?"

"We have the widest, deepest and most transparent capital markets in the world. Why the hell are we so depressed?" he asked -- rhetorically, of course, because he already knew the answer: The government is why the hell we are so depressed. From the American Banker:

"We keep shooting ourselves in the foot," Dimon said, using "we" to refer to Washington policymakers. "The reason things are coming back so slowly isn't that things had to be that way. It was that we made it that way."

http://www.huffingtonpost.com/mark-gong ... 78219.html


SIX DAYS LATER....(TODAY).....

JPMorgan Chase Loses $2 Billion On Bad Bets
JPMorgan Chase Admits Big Losses On 'Egregious' Credit Trades

JPMorgan Chase has suffered big, unexpected losses at a closely watched trading desk, providing fodder to supporters of a new financial regulation the bank's CEO has loudly opposed.

The biggest U.S. bank by assets said on Thursday that it had lost $2 billion on bad bets on credit derivatives, made by a London trading desk, run by a man other traders have alternately dubbed "The London Whale" and "Voldemort." The office is intended to hedge the giant bank's credit risk, not increase it.

In a regulatory filing on Thursday, the bank said that, since the end of March, its chief investment office "has had significant mark-to-market losses in its synthetic credit portfolio, and this portfolio has proven to be riskier, more volatile and less effective as an economic hedge than the firm previously believed."

In a surprise conference call Thursday evening, CEO Jamie Dimon acknowledged the trading desk's losses, but said they did not change his opposition to Volcker Rule -- though he admitted they did not help his argument.

"It plays right into the hands of a bunch of pundits out there," said Dimon, who only days ago called criticism of banks a form of discrimination and suggested it was anti-American to criticize business at all. "But that's life."

“It puts egg on our face, and we deserve any criticism we get," he added.

http://www.huffingtonpost.com/2012/05/1 ... 07662.html

You can't make this stuff up... :VeryScared: rofllol

"...can't stop getting in the way of America's banks, constantly pestering them about petty things like "regulation" and "solvency""

And six days later: 2 BILLION down, “It puts egg on our face, and we deserve any criticism we get," and he "acknowledged the trading desk's losses, but said they did not change his opposition to Volcker Rule -- though he admitted they did not help his argument."

You ol' job-creator, you...... :Crying:

rofllol

http://pathstoknowledge.files.wordpress.com/2010/01/thestupiditburns.jpg#the%20stupid%20it%20burns

I suggest they just use the Corzine/Sgt. Schultz defense. "I know nothing."

$2 Billion is a big oops! My sources tell me it was a big bond trader in London. Bet he has some splainin to do. LOL

Must have made a mouse click error and bought Greece bonds instead of US treasuries.

OF COURSE, this comes as NO surprise.......everyone was clueless about the depth of the problem.....the feds,the financial gurus,the
banks,the public.....this is just another iceberg floating to the surface......someone's avatar is the Titanic sinking slowly into the sea.
WHAT a prophetic image.JMO

homeagain wrote: OF COURSE, this comes as NO surprise.......everyone was clueless about the depth of the problem.....the feds,the financial gurus,the
banks,the public.....this is just another iceberg floating to the surface......someone's avatar is the Titanic sinking slowly into the sea.
WHAT a prophetic image.JMO

Did they do anything illegal... according to the current reports and information on this incident?

Another example of someone speculating (gambling) in the market and making the wrong call.

What's the big deal? Can't we just bail them out and move on?

Hush CritiKalbILL, that does seem to be the solution to every problem.

CritiKalbILL wrote: What's the big deal? Can't we just bail them out and move on?

That's my point above. They did nothing illegal. Investing is a crap shoot. No one guarantees you ANYTHING when you invest. If you loose 10,000 dollars in your investments because of the market or because your investment banker makes a bad decision, that's the game. If you don't like these outcomes, don't play. Put your money somewhere else. What are you going to do, change your whole political ideology because you lost some money?