JP Morgan Sigma events...

You know how the game works. Sausage making and all that.

Those nasty people (which they are) gives us credit cards, student loans and cheap home mortgages. Whether that is a good idea or not is up to the voters who seemed to think it was a great idea for the last few decades. Until it all blew up. Which was always inevitable.

As for the OWS people - where are they now? Last time I saw their homeless encampment downtown it was just a bunch or cranks, creeps and derelicts. Not the sort of people who will create any effective and necessary reforms of society. Meanwhile the state sails benignly towards Chapter 11…

Plus ca change…

JPMorgan Suspend Stock Buybacks → nasdaq.com/article/jpmorgan- … 0521-01293

JPMorgan Counterparty Platt Says Bank’s Loss May Widen → bloomberg.com/news/2012-05-2 … widen.html

JP Morgan traders’ losses double to £4.4bn → thisislondon.co.uk/news/lond … 70710.html

nakedcapitalism.com/2012/05/ … agall.html

Another one of JP Morgan great investments

:angry:

JPMorgan Chase loss only going to get worse → money.cnn.com/2012/05/18/markets … /index.htm

JPMorgan’s debacle, and its parallels to AIG → ritholtz.com/blog/2012/05/jp … ls-to-aig/

A Mess the 45th President Will Inherit → online.wsj.com/article/SB1000142 … 06270.html

I’ll say it again, just because I like the sound of my voice, revenue recognition on open contracts is the worst accounting rule there has ever been.

But that would be open to even further abuse, because a trader would have to do would be to make two large offsetting bets, and close out the profitable contracts while leaving the unprofitable ones run.

Perhaps, but there is a happy medium of recognising the market value of the book in terms of likely future profits and losses and paying out on them. Besides, one suspects that much of what is booked as profits in a cornered market only looks like profits because no attempt is made to sell it. How many contracts that look profitable would actually be so if they were sold?

That’s all well and good, but there isn’t a readily available “happy medium”. The only thing I can think of is to get the owners (mostly pension funds) to properly align their interests with their employees. Switch from annual bonuses/salaries to 10/20 year packages and you’ll solve all problems. A large part of the current wealth imbalances in the world is caused by the smart people syphoning money from the less smart people via pension funds. The situation will continue up until the great unwashed start to give realise that handing over huge chunks of their income every year without properly questioning how it is being spent is a recipe to be ripped off. Unfortunately they wait until they have no food left, and then revolt.

What Beached the London Whale? Credit Indices → blogs.wsj.com/marketbeat/2012/05 … t-indices/

P Morgan veteran Ina Drew quits after $2 billion trading loss → risk.net/risk-magazine/news/ … ading-loss

By killing regulation oversight , Wall Street and their political whores will kill what is left of Dodd frank

neweconomicperspectives.org/2012 … gle+Reader

nytimes.com/2012/06/10/opini … ml?_r=1&hp

nytimes.com/2012/06/10/opini … ml?_r=1&hp

The buck stops at Dimon. apparently he thought it was different this time.

complete timeline of events known so far in the article.

money talks → opensecrets.org/orgs/summary … D000000103

Though they are not the top donor → opensecrets.org/orgs/list.php?order=A

Simon Johnson, a former chief economist of the IMF, a professor at MIT Sloan, BaselineScenario.com,

Petition to Remove Jamie Dimon from the NY FED board

change.org/petitions/jamie-d … -directors

[quote] Ferguson believes that this form of academic “consulting” is generally out of control. I agree, but reining it in will be difficult as long as the universities and “too big to fail” banks remain so intertwined.

In this context, I was recently disappointed to read in The Wall Street Journal an interview with Lee Bollinger, President of Columbia University. Bollinger is a “class C” director of the Federal Reserve Bank of New York – appointed by the Board of Governors of the Federal System to represent the public interest.

In what was apparently his first-ever interview or public statement on banking-reform issues (or even finance), Bollinger’s main point was that Dimon should continue to serve on the board of the New York Fed. He used surprisingly nonacademic language – stating that “foolish” people who suggest that Dimon should resign or be replaced have a “false understanding” of how the system really works.

I am currently petitioning the Board of Governors to remove Dimon from this position. Nearly 37,000 people have signed the on-line petition at change.org, and I am optimistic that I will have a meeting soon with senior Washington, DC-based Board staff to discuss the matter.
[/quote]

project-syndicate.org/commen … professors

And in the parrallel universe of global banking, derivatives trading, and general skullduggery, you can lose $9billion and still be good. or should i say book trading losses of $9billion and offset them with gains elsewhere while positioning yourself for mega-gian in future - cool trick :exclamation:

bloomberg.com/news/2012-06-2 … ummit.html

bloomberg.com/news/2012-06-2 … llion.html

77% of JP Morgan’s Net Income Comes from Government Subsidies → washingtonsblog.com/2012/07/ … idies.html

Former Brokers Say JPMorgan Favored Selling Bank’s Own Funds Over Others - SUSANNE CRAIG and JESSICA SILVER-GREENBERG → dealbook.nytimes.com/2012/07/02/ … er-others/

bloomberg.com/news/2012-07-1 … ports.html

Free willy! The whale is leaving

Earning call today

US Markets Live: Live blog of the JPMorgan earnings call including details of the “London whale” @FTAlphaville FT Alphaville | Financial Times
Edit
Loss now put at $5.8 yards