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Thread: JPMorgan Loses $2 Billion in Chief Investment Office

  1. #51
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    Re: JPMorgan Loses $2 Billion in Chief Investment Office

    Quote Originally Posted by washunut View Post
    No he was not the culprit of this transaction. I would agree that the person who was responsible needs to go.
    He is the captain of the ship, so he is ultimately responsible, moreover he is one of the most vocal opponents of regulations that seek to downsize banks like JPM and limit systemic risk. His argument implies that gargantuan banks like JPM are NOT too big to manage, so by his own terms he should have been on top of this situation. A classic case of bing hoisted on one's own petard.
    "The necessaries of life occasion the great expense of the poor. They find it difficult to get food, and the greater part of their little revenue is spent in getting it. The luxuries and vanities of life occasion the principal expense of the rich, and a magnificent house embellishes and sets off to the best advantage all the other luxuries and vanities which they possess. ... It is not very unreasonable that the rich should contribute to the public expense, not only in proportion to their revenue, but something more than in that proportion."

    -- Adam Smith

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    Re: JPMorgan Loses $2 Billion in Chief Investment Office

    Hey they can just take 2 billion out of the bonus pool to cover the loss.. no problem!
    PeteEU

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    Re: JPMorgan Loses $2 Billion in Chief Investment Office

    Quote Originally Posted by AdamT View Post
    He is the captain of the ship, so he is ultimately responsible, moreover he is one of the most vocal opponents of regulations that seek to downsize banks like JPM and limit systemic risk. His argument implies that gargantuan banks like JPM are NOT too big to manage, so by his own terms he should have been on top of this situation. A classic case of bing hoisted on one's own petard.

    Funny, you would be one of the first on this site to defend Obama when one of his staff does something stupid and say you can't blame him.

    JP Morgan has equity of nearly $200 billion, so while to the uninformed the number looks horrible it is quite manageable for them.

    Just because he has rightfully fought Geithner and Bernanke from gutting an industry people like you are taking every cheap shot you can, have fun while you can.

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    Re: JPMorgan Loses $2 Billion in Chief Investment Office

    Quote Originally Posted by washunut View Post
    Funny, you would be one of the first on this site to defend Obama when one of his staff does something stupid and say you can't blame him.

    JP Morgan has equity of nearly $200 billion, so while to the uninformed the number looks horrible it is quite manageable for them.

    Just because he has rightfully fought Geithner and Bernanke from gutting an industry people like you are taking every cheap shot you can, have fun while you can.
    Its more than manageable. Now this years bonus numbers have not been released yet as far as I know, but I suspect the bonus pool is going to be over 10 billion... it was far larger in 2010. So 2 billion loss for a bad trade.. drop in the ocean.

    If they have the nerve to post a quarterly or yearly loss because of this.. then the outrage will be huge.... since that would most likely mean money back from the feds in taxes..
    PeteEU

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    Re: JPMorgan Loses $2 Billion in Chief Investment Office

    Quote Originally Posted by washunut View Post

    Just because he has rightfully fought Geithner and Bernanke from gutting an industry people like you are taking every cheap shot you can, have fun while you can.
    Geithner and Bernanke "gutting an industry"!!!!!!! Are you serious? The two men have done as much as anyone to shield those who led the disastrous financial shenanigans that resulted in our present economic problems.
    “And I have no doubt that every new example will succeed, as every past one has done, in shewing that religion & Govt will both exist in greater purity, the less they are mixed together.”
    ~ James Madison, letter to Edward Livingston, July 10, 1822

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    Re: JPMorgan Loses $2 Billion in Chief Investment Office

    Quote Originally Posted by Somerville View Post
    Geithner and Bernanke "gutting an industry"!!!!!!! Are you serious? The two men have done as much as anyone to shield those who led the disastrous financial shenanigans that resulted in our present economic problems.
    A little history lesson for the uninformed. Geithner was the president of the NY Fed. He was responsible for regulating the am amount of risk banks were allowed to take BEFORE the crisis. If he had not allowed banks to leverage up or had not allowed liar loans this thing may have been avoided.

    Bernanke did a very good job during the crisis, but a lousy one after and has been a fig leaf for the administration the last couple of years. He will go down as both brave during the crisis and then allowing the Fed to lose it's independence.

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    Re: JPMorgan Loses $2 Billion in Chief Investment Office

    Quote Originally Posted by leftofabbie View Post
    JP Morgan "loses" two billion dollars of investor money, yet Republicans think Morgan is over-regulated.
    They lost $2B of investor money; but as they are FDIC insured and too big to fail, they also gambled with taxpayer money. They did the very thing that got us into the huge mess 3 years ago. Unfortunately, the current regulatory environment, tax structure and the fact no one went to jail over the 2008 meltdown work together to provide incentives for bank execs to gamble with other people's money. They personally get the upside; yet have no personal downside.

    That is not the way capitalism is suppose to work. In true capitalism the reward only goes to those that are exposed to the risk. How many of us would be more than happy to put someone else's money on the roulette wheel if we took the profit and only had to say "sorry" if we lost it? How many of us would do that with our money?

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    Re: JPMorgan Loses $2 Billion in Chief Investment Office

    Quote Originally Posted by upsideguy View Post
    They lost $2B of investor money; but as they are FDIC insured and too big to fail, they also gambled with taxpayer money. They did the very thing that got us into the huge mess 3 years ago. Unfortunately, the current regulatory environment, tax structure and the fact no one went to jail over the 2008 meltdown work together to provide incentives for bank execs to gamble with other people's money. They personally get the upside; yet have no personal downside.

    That is not the way capitalism is suppose to work. In true capitalism the reward only goes to those that are exposed to the risk. How many of us would be more than happy to put someone else's money on the roulette wheel if we took the profit and only had to say "sorry" if we lost it? How many of us would do that with our money?

    Are you simply uninformed, or more likely blindly following dem talking points. While this was a lousy set of transactions, it by no means put the company into any financial stress, let alone talk about a bailout. The company has nearly $200 billion in capital and will still earn a profit for the quarter.

    No wonder it is so easy for politicians to lie to us all of the time. Most people would rather rant than study any subject.

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    Re: JPMorgan Loses $2 Billion in Chief Investment Office

    Quote Originally Posted by washunut View Post
    Funny, you would be one of the first on this site to defend Obama when one of his staff does something stupid and say you can't blame him.

    JP Morgan has equity of nearly $200 billion, so while to the uninformed the number looks horrible it is quite manageable for them.

    Just because he has rightfully fought Geithner and Bernanke from gutting an industry people like you are taking every cheap shot you can, have fun while you can.
    No, I have always said that Obama is ultimately responsible for the actions of his subordinates. And believe me, I don't find anything "fun" about this industry that brought the world's economy to its knees, and I don't think there's anything funny about Dimon's wrong-headed efforts to fix the serious problems that led to the disaster.
    "The necessaries of life occasion the great expense of the poor. They find it difficult to get food, and the greater part of their little revenue is spent in getting it. The luxuries and vanities of life occasion the principal expense of the rich, and a magnificent house embellishes and sets off to the best advantage all the other luxuries and vanities which they possess. ... It is not very unreasonable that the rich should contribute to the public expense, not only in proportion to their revenue, but something more than in that proportion."

    -- Adam Smith

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    Re: JPMorgan Loses $2 Billion in Chief Investment Office

    Quote Originally Posted by washunut View Post
    Are you simply uninformed, or more likely blindly following dem talking points. While this was a lousy set of transactions, it by no means put the company into any financial stress, let alone talk about a bailout. The company has nearly $200 billion in capital and will still earn a profit for the quarter.

    No wonder it is so easy for politicians to lie to us all of the time. Most people would rather rant than study any subject.
    Speaking of uninformed and blindly following talking points....

    Yeah, this loss isn't going to sink the bank, but it is yet another sign that additional regulation is required. Apparetnly the credit ratings firms and the market aren't as copacetic as you are:

    The debacle sparked new fears about big banks and prompted Dallas Federal Reserve Bank President Richard Fisher, who has called for the breakup of the top five U.S. banks, to say he is worried the biggest banks do not have adequate risk management.

    The fallout extended across much of the banking sector, with shares of some of Wall Street's top names declining on Friday. Among others, Citigroup dropped 4.2 percent, Goldman Sachs fell 3.9 percent and Bank of America slipped 1.9 percent.

    JPMorgan was far away the worst performer, however, falling 9.3 percent on a day when some 212 million of its shares traded, the most volume in its history.

    Fitch Ratings downgraded JPMorgan's debt ratings by one notch and put all of the ratings of the bank and its subsidiaries on negative ratings watch.

    While Fitch saw the size of the loss as manageable, "the magnitude of the loss and ongoing nature of these positions implies a lack of liquidity," the ratings agency said. "It also raises questions regarding JPM's risk appetite, risk management framework, practices and oversight; all key credit factors."

    "Fitch believes the potential reputational risk and risk governance issues raised at JPM are no longer consistent with an 'AA-' rating," it said.

    JPMorgan $2 billion loss hits shares, dents image - Yahoo! News
    The $2 billion trading loss led to a $15 billion loss in market capitalization.
    Last edited by AdamT; 05-13-12 at 02:48 PM.
    "The necessaries of life occasion the great expense of the poor. They find it difficult to get food, and the greater part of their little revenue is spent in getting it. The luxuries and vanities of life occasion the principal expense of the rich, and a magnificent house embellishes and sets off to the best advantage all the other luxuries and vanities which they possess. ... It is not very unreasonable that the rich should contribute to the public expense, not only in proportion to their revenue, but something more than in that proportion."

    -- Adam Smith

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