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View Full Version : How Jamie Dimon hid JP Morgan's $6 billion loss



Conley
07-13-2012, 07:48 PM
Interesting article about how banks can work the numbers on their earnings.


FORTUNE -- Here is perhaps the most amazing thing about JPMorgan Chase's (JPM) $5.8 billion trading loss: Take a look at the firm's overall results, and it's like the London Whale's misstep, one of the largest flubs in the history of Wall Street, never happened.

Back in mid-April, about two weeks before talk of the trading losses emerged, JPMorgan was expected to earn $1.21 a share in its second quarter. On Friday, JPMorgan reported that it had, Whale and all, earned exactly that.

How the bank appears to have offset the huge trading loss is a prime example of how complex and malleable bank profits actually are, and how much they should be believed. JPMorgan's quarter should give fodder for accountants to talk about for some time.

http://finance.fortune.cnn.com/2012/07/13/jpmorgan-hid-london-whale/?iid=HP_LN

Peter1469
07-13-2012, 07:54 PM
Had Glass Steagal not been repealed ordinary citizen's bank accounts would not be at risk over this reckless risk-taking.

Goldie Locks
07-13-2012, 07:58 PM
Had Glass Steagal not been repealed ordinary citizen's bank accounts would not be at risk over this reckless risk-taking.


Yep!!!!!!!!

michaelr
07-15-2012, 09:58 PM
I got news here as well.

The cost of the CDS is about $9 billion, but that is nothing. The CDS was supporting the MBS and that's the problem. The true cost is in the hundreds of billions.

JPM Admits CIO Group Consistently Mismarked Hundreds Of Billions In CDS In Effort To Artificially Boost Profits (http://www.zerohedge.com/news/jpm-admits-cio-group-mismarked-hundreds-billions-cds-effort-artificially-boost-profits)

This is part of the paper crash that some of you have seen me go on about.

I have a prediction on another board, I had help with this, I can only leave it at that.

1- JPM will be bailed out again but it will not stop the coming market crash. More details will emerge about their derivative swap failure $150 billion and counting.
2-BOA will fold and be absorbed into JPM as a way to prop up the bleeding Giant. JPM will get the best picking of this deal just like they got with Bear Stearns.
3- Massive layoffs at Citigroup and Wells Fargo
4- Goldman Sachs finally pays the piper, look for massive cuts there as well as BIG Losses
5- Bond market bust which leads to freeze of all bond sales
6- Derivative bust the next one will be BOA followed by Citigroup
7- All CDS shorts and swaps will freeze.
8- Total Meltdown

This news from JP confirms two aspects of my prediction. 1) JP will beg for a bailout, or might just get one under the table.

Now here is the biggie, and this is the one that can keep me up at nights. The freeze on the CDS. When that happens, duck and fucking cover. I mean that.

Peter1469
07-16-2012, 03:21 PM
Do you have a timeline? Assuming that you have a safe (relatively) job and your mortgage is about 20% of your gross, would a person be better off owning or renting? I guess if the collapse is total, they aren't going to be able to foreclose on your property.

michaelr
07-16-2012, 03:53 PM
Do you have a timeline? Assuming that you have a safe (relatively) job and your mortgage is about 20% of your gross, would a person be better off owning or renting? I guess if the collapse is total, they aren't going to be able to foreclose on your property.


Best I can give you is around late Oct to half way through Sept.

I can give you what I know, and how I interpret the data I see, I can't give financial advise.

It is hard to say what happens when everything falls apart. It depends on how society reacts. Believe it or not, they still may be able to foreclose in mass.

Keep your eye on JP for an additional bailout. The new details on their swaps are out, and I have them on my previous post here. At the time I had put this together, I knew of $150 billion in bad derivatives, it is now what a few hundred billion. This is on the $2 billion lie. I guess now it is a $6 billion lie. If I know, and knew the initial CDS was based on $150 billion in derivatives the damn government did.


Country wide is under attack and this should bring down BoA, and you will see it absorbed soon. BAC (bank of America) shares are $7.79. (http://secure.marketwatch.com/investing/stock/bac) This make the absorption into JP Morgan...hell imminent.

Those sign post are clear. It is the CDS Freeze that I can't nail any closer than mid OCT. That's the crusher.

If it were me, and the mortgage was 20% of gross I would hang on. Rents could be compatible to that, depending on mortgage and gross of course....my disclamer...that ain't advise that's just what I would do.

Peter1469
07-16-2012, 04:06 PM
Best I can give you is around late Oct to half way through Sept.

I can give you what I know, and how I interpret the data I see, I can't give financial advise.

It is hard to say what happens when everything falls apart. It depends on how society reacts. Believe it or not, they still may be able to foreclose in mass.

Keep your eye on JP for an additional bailout. The new details on their swaps are out, and I have them on my previous post here. At the time I had put this together, I knew of $150 billion in bad derivatives, it is now what a few hundred billion. This is on the $2 billion lie. I guess now it is a $6 billion lie. If I know, and knew the initial CDS was based on $150 billion in derivatives the damn government did.


Country wide is under attack and this should bring down BoA, and you will see it absorbed soon. BAC (bank of America) shares are $7.79. (http://secure.marketwatch.com/investing/stock/bac) This make the absorption into JP Morgan...hell imminent.

Those sign post are clear. It is the CDS Freeze that I can't nail any closer than mid OCT. That's the crusher.

If it were me, and the mortgage was 20% of gross I would hang on. Rents could be compatible to that, depending on mortgage and gross of course....my disclamer...that ain't advise that's just what I would do.

Understood.

michaelr
07-16-2012, 05:02 PM
Understood.

Good, because sometime when I have to think and type, shit gets lost in the translation....hahaha

young man that's not funny........that's cool i ain't young