Well, initially, I said I felt sorry for Jamie Dimon, CEO of JP Morgan Chase -- now not so much! With CNN Money reporting that the initial trading loss estimate of $2 billion is now closer to $6 billion -- we are talking speculation and not hedging! There is a big difference!
When market trading losses from the decline in the market price is considered it is estimated that the overall loss is close to $30 billion! So with a trading loss that is estimated to be close to $6 billion, we are no longer talking about a loss from hedging This must be due to major speculative trading -- gambling, so to speak!
There really is no excuse for this sort of trading activity post 2008! The market reforms were intended to protect investors and depositors from precisely this type of speculative trading.
Jamie Dimon has some major questions to answer to JP Morgan Chase's Board, shareholders and regulators!
Source: Please read the snippet below and scroll down to click on the link to read more --
======
When market trading losses from the decline in the market price is considered it is estimated that the overall loss is close to $30 billion! So with a trading loss that is estimated to be close to $6 billion, we are no longer talking about a loss from hedging This must be due to major speculative trading -- gambling, so to speak!
There really is no excuse for this sort of trading activity post 2008! The market reforms were intended to protect investors and depositors from precisely this type of speculative trading.
Jamie Dimon has some major questions to answer to JP Morgan Chase's Board, shareholders and regulators!
Source: Please read the snippet below and scroll down to click on the link to read more --
======
Jamie Dimon Complains More, As JPMorgan Chase Losses Eclipse $30 Billion
Posted: 05/21/2012 12:23 pm
Champion American complainer Jamie Dimon complained on Monday about Wall Street regulation, while also insisting he not be described as a complainer. All the while, his bank's losses, partly resulting from lax regulation, continued to grow.
An initial $2 billion trading loss has likely resulted in a total loss of more than $30 billion, when you include a 19 percent drop in the bank's stock price. By itself, the trading loss alone might balloon to more than $6 billion, according to one estimate.
To strengthen the Cognitive Dissonance Vortex he had created, the JPMorgan Chase CEO's comments came as the ink was still drying on news reports that reminded everybody of why the Wall Street regulation he complains about constantly is necessary in the first place. Namely, theWall Street Journal reported that a top risk-management officer at JPMorgan apparently had a spotty track record of risk-management. And CNNMoney said estimates of the bank's initial $2 billion loss due to poor risk-management have tripled to at least $6 billion.
But first, to the Dimon Complain-Bot 9000: Speaking at the Deutsche Bank Securities Global Financial Services Investor Conference in New York, Dimon rolled out several of his standard complaints about post-crisis efforts to regulate the financial sector, according to the Wall Street Journal's Deal Journal blog, which live-blogged his comments.
On the Volcker Rule, which -- if it is ever actually put in place in any real way -- would prohibit banks with federally insured customer deposits from being able to blow billions of dollars on stupid market gambles, Dimon warned that regulators should be very careful not to "throw the baby out with the bathwater." Typically in this analogy, which he has used more than once before, Dimon implies that JPMorgan is the squeaky-clean baby and other banks are the nasty bathwater. But now that JPMorgan Chase has done exactly the sort of thing the Volcker Rule was designed to stop, the analogy is less effective -- the baby a bit scummier, if you will.
Posts
No comments:
Post a Comment