It's Official: Absolutely Nobody On Wall Street Cares About JPMorgan Chase Losing $30 Billion.

[WillyT]

Wall Street Does Not Care About JPMorgan's Loss
Mark Gongloff - HuffPo
Posted: 06/11/2012 1:46 pm Updated: 06/11/2012 1:46 pm


JPMorgan Chase CEO Jamie Dimon. He's
got plenty of supporters on Wall Street
defending his bank's big loss.

<snip>

It's official: Absolutely nobody on Wall Street cares about JPMorgan Chase losing $30 billion.

That is the clear message of an exhaustively reported piece by Bloomberg's Max Abelson this morning. (See below.)

Last week we cowered as the Irony Gods hurled lightning bolts at the news that Alan Greenspan fully supports JPMorgan's God-given right to lose billions of dollars in unregulated derivatives while being backstopped by the U.S. taxpayer. Greenspan has lots of company.

Abelson finds more than a dozen people who agree with Greenspan that JPMorgan losing $2 billion or $4 billion or $6 billion in credit derivatives, while shareholders lose about $30 billion in equity value, is not only not a big deal, but sort of just the way the world works. What the heck are you gonna do?

A sampling of quotes:

“I kind of shrug."

“I don’t think it’s a big issue.”

“There is no law that says you can’t lose money."

No, indeed, there is no law that says you can't lose money. The issue is whether there should be a law that banks with federally insured customer deposits should be prohibited from rolling the dice on risky, unregulated credit derivatives, to possibly lose a great deal of money.

In fact, there is such a law, commonly known as the Volcker Rule, part of the Dodd-Frank financial reform act. But JPMorgan CEO Jamie Dimon and a flying-monkey army of lobbyists representing Greenspan's Wall Street acolytes have tried to hopelessly complicate that rule and render it ineffective before it even takes effect, which is supposed to happen next summer.

JPMorgan's losses have dealt a serious blow to Wall Street's efforts to murder the Volcker Rule. That may be one reason they're taking to the media to defend JPMorgan so aggressively -- even though the Volcker Rule and other regulations the Greenspaniards hate could have prevented JPMorgan's loss...

<snip>

More: http://www.huffingtonpost.com/2012/06/11/jpmorgan-chase-loss_n_1586979.html?ref=business

****************************************************************

Wall Street Shrugs As JPMorgan Trades Lop Off $27 Billion
By Max Abelson - Bloomberg
Jun 11, 2012 12:14 PM PT

<snip>

JPMorgan Chase & Co. (JPM) Chief Executive Officer Jamie Dimon plans to testify before Congress this week about his firm’s $2 billion trading loss. His Wall Street colleagues don’t understand why.

“Occasional losses are inevitable,” said Blackstone Group LP (BX)’s Stephen A. Schwarzman, 65, CEO of the largest private- equity firm. “Publicly excoriating JPMorgan serves no purpose except to reduce people’s confidence in the financial system.”

The loss sliced $27 billion from JPMorgan’s market value in the month after the May 10 disclosure, while triggering at least five federal probes and two planned Capitol Hill hearings with Dimon. It also renewed debate about whether curbs on trading by bankers were tightened enough after their wrong-way bets pushed the system to the brink of collapse in 2008.
Executives, lobbyists and analysts said in more than a dozen interviews that the public stir is an overreaction to a minor misstep.

“I kind of shrug,” said Bill Archer, 58, a former co- chairman of Goldman Sachs Group Inc. (GS)’s capital markets committee and now a partner at buyout firm Veronis Suhler Stevenson LLC in New York. “That’s just the way the world is.”

<snip>

More: http://www.bloomberg.com/news/2012-06-10/wall-street-shrugs-as-jpmorgan-trades-lop-off-27-billion.html

[coalition_unwilling]

1. Want to hear something even more obscene and disgusting? The $2

billion in losses represents just 1% of JPM's capital. Even a $27 billion loss would be only 14% of JPM's capital.

Still, if I were a JPM shareholder, I would be seriously pissed off. In a major way.

[Skidmore]

2. I finally saw a film today that really gave me an insight into the psychosis

of the denizens of Wall Street--"American Psycho." Had never seen it before today. That scene with the homeless man sickened me. The Bateman character really drives home the callous empty suit control freak soulless freaks that pass for leaders there.

[Comrade_McKenzie]

3. Patrick Bateman would totally be someone that would impersonate a cop

and pull someone over.

Or hold them down and cut their hair.

[banned from Kos]

4. ohhhh PLEASE! JPM lost $27 billion in MARKET CAP (not company losses)

I believe Facebook lost more in the last month.

For a Dow 30 or large cap stock a $30 billion gain/loss is fairly common.

Bank of America doubled this year before falling back ($60 billion)

[WillyT]

5. Question... How Much Money Did These Fucks Accept As Bailouts From The American Taxpayer ???

I'm pretty sure they did...

[banned from Kos]

7. $25 billion. And we made a $1.7 billion PROFIT after they repaid (see link)

http://projects.propublica.org/bailout/entities/282-jpmorgan-chase

Stick it to them, Timmy!

[banned from Kos]

8. That is a whopping NINE PER CENT interest rate we hit Morgan with!

LMAO!

Timmy, you did well!

[Egalitarian Thug]

22. Don't be fooled Willy. This guy is just spouting talking points written by banksters,

the Fed, and Treasury for public misinformation (propaganda). They haven't paid back anything and actually owe a good chunk of about $300B poured into the black hole of Wall Street. Basically, they used a newly legal accounting charade to pretend that monies spent on acquisition were repaid to the government.

Here's a decent non-technical explanation.

[JDPriestly]

14. If it is no big deal, why did JP Morgan announce it with such fanfare?

[banned from Kos]

15. It is smooth PR.

"Hey, we screwed up! We lost $2-3 billion on hedging and it won't affect our day to day operations"

Admit it and move on!

[Prometheus Bound]

16. So? That's what the OP says. Why are you complaining?

[banned from Kos]

18. No. If JPM stock loses $27 billion in value that has no bearing on actual earnings

the stockholders bear the brunt - not the company.

[Prometheus Bound]

19. It says $2 billion loss and $27 billion sliced from JPMorgan’s market value.

It can't possibly be any clearer.

What on earth are you complaining about?

[MrScorpio]

6. A billion here or a billion there and before you know it, you're talking about real money. nt

[meanit]

9. There is NO honor with these types

Unless they are hit with the full force of the law, they will continue to do what they do; probably a lot worse actually. They will take advantage of every break or bailout that they get because they see it as a sign of weakness.
Might makes right is the ONLY thing they understand. The quicker everybody realizes that, the better.

[Octafish]

10. Don't worry. Our job is just to bail them out.

Their job is to spend our money any way they want to.

Plus, of course, all the money they stole in the first place.

[WillyT]

11. Hey... Did You Happen To Catch This Thread ???

Link: http://www.democraticunderground.com/1002791335

[banned from Kos]

12. JPM may be scoundrels but they repaid taxpayers plus interest

http://projects.propublica.org/bailout/entities/282-jpmorgan-chase

[Ashley96]

13. Spam deleted by gkhouston (MIR Team)

[TrollBuster9090]

17. I don't care JPM losing $30 billion per se either, and neither should you. What you SHOULD...

...worry about is the fact that it was ONE ASSHOLE taking reckless, dangerous risks, while nobody in his company even knew about it, and there were no government safety regulations to prevent it that caused the loss. This kind of moral hazard, where one guy can take enormous risks with mountains of capital, standing to gain millions in bonuses if he's right, while standing to lose nothing more than his job if he's wrong is what WRECKED BARINGS BANK in 1995.

Does anybody remember THIS guy? Nick Leeson, a derivatives trader who, at the wise old age of 28, single handedly destroyed England's oldest investment bank, BARINGS, in 1995.

http://en.wikipedia.org/wiki/Nick_Leeson

That was a wake up call, and it happened 13 years before the collapse of 2008. Apparently nobody woke up. Nothing changed. No safety regulations were put in place. What caused the 2008 world economic collapse? A couple of hundred Nick Leesons making the same risky bets under the same moral hazard, and having them all go wrong AT ONCE, instead of one at a time.

This is the same thing. Some reckless jerkoff at JP Morgan made risky bets that went wrong and caused a few billion to disappear. It still happens. There's nothing to stop it. And there's nothing to stop it from happening to several hundred jerkoffs at once, and causing a few TRILLION to disappear.

[Prometheus Bound]

20. It seems that J P Morgan higher-ups knew about it for two years.

J.P. Morgan Knew of Risks

Warning Flags Raised Two Years Ago About Trading Desk That Lost $2 Billion.

Some top J.P. Morgan Chase & Co. executives and directors were alerted to risky practices by a team of London-based traders two years before that group's botched bets cost the bank more than $2 billion, according to people familiar with the situation.

Interviews with more than a dozen current and former members of the bank's Chief Investment Office, the unit responsible for the losses, indicate that discussions about reining in London traders started as early as 2010. Certain directors were briefed then on a foreign-exchange-options bet that went bad, and were told that the trader responsible wouldn't be allowed to ...

http://online.wsj.com/article/SB10001424052702303768104577460792166155830.html?mod=WSJ_hps_LEFTTopStories

[TrollBuster9090]

21. Thanks for the info! nt