JPMorgan $2 billion loss hits shares, dents image

Comments (41)
Jim1648 wrote:

The CEO will get a $10 million bonus for putting up with the emotional distress of all the losses.

May 10, 2012 9:22pm EDT  --  Report as abuse
OmarMinyawi wrote:

After all, they are all the same.

May 10, 2012 9:48pm EDT  --  Report as abuse
BiteRight wrote:

Greed is the root cause of poverty.

May 10, 2012 10:02pm EDT  --  Report as abuse
juandegringo wrote:

“Give me control of a nation’s money and I care not who makes the laws.” – Mayer Rothschild, Bankster

He’ll take his golden parachute to spend more time with his family, someone else will take the fall, and that will be that.

May 10, 2012 10:02pm EDT  --  Report as abuse
Yamayoko wrote:

Why not London Whale placed such big bet on Carribean poker ? He would stand more chances to win than this slapping his face right side and left.

May 10, 2012 10:56pm EDT  --  Report as abuse
rissey wrote:

I always think Jamie Dimon is the smartest of all at Wall Street and I got this impression, the moment, Capitol Hill started hearing in 2010 on Wall Street’s excesses. Then, I figured, Jamie Dimon has quietly mounted a counter offensive already on Capitol Hill to mitigate the Barney Franks legislation coming.
The London Whale – they knew about these positions even after the wake of all these financial fiasco – synthetic instruments – just euphemism for another casino product. Hedging is simply betting and if you are big enough and can organise to be big enough amongst collaborators, you eat the house or you become the house. When will regulators and politicians adjust themselves to be ahead of the curve, enforce life threatening and punitive measures to these engineers of misery?

May 10, 2012 11:08pm EDT  --  Report as abuse
bk2012 wrote:

Baring Brothers…
Societe Generale…
JP Morgan….
Betting, gambling… the story keeps going on

May 10, 2012 11:08pm EDT  --  Report as abuse
fromthecenter wrote:

The job creators…..

May 10, 2012 11:15pm EDT  --  Report as abuse

Jamie, Jamie, Jamie…. this is precisely why we need the Volker rule, because there is always dumb people making idiotic decisions. If Volker rule were in place JPM may not have lost the $2B.

May 10, 2012 11:32pm EDT  --  Report as abuse

Hedging is also trading; I do not understand why the author is trying to split hairs by saying it was hedging that went bad and not propreitary trading. Hedging was part of the propreitary trading strategy. If the hedging would have made money, I am sure Jamie would be all over it claiming credit for how good their propreitary trading strategy was.

May 10, 2012 11:35pm EDT  --  Report as abuse
psittacid wrote:

What reputation?

May 10, 2012 12:00am EDT  --  Report as abuse
AZWarrior wrote:

Just another example of how the system went from investing to nothing more than a gambling casino. How much of a taxpayer bailout do tbey want this time?

May 10, 2012 12:05am EDT  --  Report as abuse
breezinthru wrote:

I can’t help but be amused by Nancy Bush’s starry-eyed comment: “I don’t know how this went so bad so quickly with his knowledge and aversion to risk.”

Please… let us remember that this is the same Jamie Dimon whose bank was standing in line for 25 Billion USD in emergency TARP funds only a few short years ago.

May 10, 2012 12:24am EDT  --  Report as abuse
AfrazCalicut wrote:

If you cheat freddy God will cheat you…this will continue to happen if you act too smart.

May 10, 2012 12:30am EDT  --  Report as abuse
cs123 wrote:

Jaime – allow me to bail you out. then please, take over my social security and invest it wisely.

May 11, 2012 1:13am EDT  --  Report as abuse
vaporland. wrote:

bet it turns out to be more than $2 billion. hope they don’t mind if I skip my next 300 house payments…

May 11, 2012 1:58am EDT  --  Report as abuse
Farfoor wrote:

USD 2 billion on a “failed hedging strategy”? If a hedge is not effective, it implicitly comprises a speculative trading risk. And ineffective hedges entered into willingly are also de facto speculative trades in disguise. To lose USD 2 billion implies that the underlying nominal exposure was what, USD 100 billion, USD 200 billion of defective hedges?

Call that sloppy? Not at all, these were simply speculative trades that went sour. Bankers are still addicted to fast and ‘easy’ profits…


May 11, 2012 3:54am EDT  --  Report as abuse
shadowL wrote:

Except for people handling the bank’s private equity investments, “no one at JPMorgan is paid on their profits and losses,” he said. WTF does this mean

May 11, 2012 4:03am EDT  --  Report as abuse
whyknot wrote:

What’s the big deal here? So JP lost that means somebody else got the money, right? So the money is still there only JP does not have it. Nothing changed.

May 11, 2012 4:19am EDT  --  Report as abuse
Harry079 wrote:

Investopedia explains ‘Synthetic CDO’

Synthetic CDOs are a modern advance in structured finance that can offer extremely high yields to investors. However, investors can be on the hook for much more than their initial investments if several credit events occur in the reference portfolio.

Read more:

May 11, 2012 8:21am EDT  --  Report as abuse
Entanglement1 wrote:

That’s like accidentally hiring 62.7 journalists for a year at an average salary of $31,900! To quote Mr. Dimon: “…just d@!?$ outrageous”.

May 11, 2012 8:40am EDT  --  Report as abuse
billbritton wrote:


May 11, 2012 8:49am EDT  --  Report as abuse
CMEBARK wrote:

Maybe if the banks didn’t take so much risk in the first
place they wouldn’t have to hedge it. All this “risk” taking
is no more than gambling. The banks are simply out of
control and if more controls both nationally and
internationally aren’t put on, we will simply go from one
crisis to another. Of course the real problem is that money
has so corrupted most political institutions there is simply
no will to put on any controls.
We just don’t get it!

May 11, 2012 8:59am EDT  --  Report as abuse
RangerDan wrote:

Spooked? Really? I’m terrified of these loose cannons. And the Republicans want to deregulate them further? Not until we are guaranteed that tax payer money will never ever be used again to bail them out. I mean never!

May 11, 2012 9:42am EDT  --  Report as abuse
ChicagoFats wrote:

So Dimon loses a bundle at the slots by the end of March, and spends the remaining time until now doubling down at the blackjack table, trying to win the money back. With predictable results. Now too big to cover up so a scapegoat is needed.

There’s a 12 step program for this, I believe.

May 11, 2012 9:53am EDT  --  Report as abuse
JLWR wrote:

Never ever privitize Social Security or these greedy thugs will gamble it away in a heartbeat and expect you to bail them out on top of it. Anyone who talks about privitiztion of education, prisons, or Social Security is a scandoulous thug. So don’t listen to these monstrous liars and their bag of lures and enticements. Tel them to take a hike.

May 11, 2012 11:18am EDT  --  Report as abuse
TheUSofA wrote:

From what I’ve read, 85% of the toxic derivatives market will remain unregulated and without oversight under the, now riddled with loopholes, Volcker Rule.

Glass-Steagall anyone?

Though what Wall Street wants is what Washington will give them. After all, the bank lobbyists have flooded Washington and have been busy, busy since being bailed out.

May 11, 2012 12:33pm EDT  --  Report as abuse
KeithSpringer wrote: The bull market is 40 months old – the average age of a bull market is usually 39 months, The market usually peaks in the 4th year of a presidential cycle, then turns down in the first year bottoming in October of the 2nd year, 2014. Banks have millions of homes to foreclose on and flood the market, so housing still has another 20-30% to drop, And that by the end of this year every baby-boomer will be over 50 and past their peak spending years, is JP Morgan’s announcement an anomaly? I wouldn’t bet the farm on it!

May 11, 2012 1:01pm EDT  --  Report as abuse
uc8tcme wrote:

Love it, hate it, but you can not ignore it – that’s Capitalism.

May 11, 2012 1:25pm EDT  --  Report as abuse
OuterLimits wrote:

Playing at the casino with depositors money backed by the US.

May 11, 2012 1:30pm EDT  --  Report as abuse
bobber1956 wrote:

Reputation? This just confirms what I have thought of them, and all banks, all a long. My question is: Ok, they lost 2 bil, where is it? Yeah, just what I thought.

May 11, 2012 1:52pm EDT  --  Report as abuse
Snark91 wrote:

This article gives further insight into ramifications of the loss for JP-Morgan.

May 11, 2012 3:40pm EDT  --  Report as abuse
Talkvent wrote:

In the real world that is called proprietary trading…Hedge? Really? Would they have taken bonuses on that “hedge” What about bunch of liars! Were they using free Fed money to do this?

May 11, 2012 4:54pm EDT  --  Report as abuse
Talkvent wrote:

I thought they were “loaning” more money…doesn’t sound like a loan.

May 11, 2012 4:55pm EDT  --  Report as abuse
garilou wrote:

“If You Agree With Jamie Dimon, Buy JPMorgan Calls”
Article on Seeking Alpha:

The article was nothing else then arguments from Jamie Morgan himself!

I could not disagree more.
April 16: all my indicators showed it was a SELL (this happens frequently on SA)
So both together, I shorted JPM right away.
Unfortunately I covered on May 9th.

Jammie “Daemon” is Lucifer personified: Handsome, intelligent, charming, nice smile (well not yesterday) and… profoundly evil.

When an issue is raised about his bank, have you noticed that he never knows “exactly”?
Even when he had time to get briefed before.
It is never his responsibility, others take the decisions, make the tradings, prepare the “toxic packages”.

His only responsibility as CEO is to cash the salary and the bonuses, and to smile to the cameras.

Oh yes, I forgot, he is also consulted for the Volcker Rules!
This is something he does very convincingly.
Like Lucifer can do.

So now, some JPM angels will be fired, so that he can keep his job as CEO dignified.

May 11, 2012 5:22pm EDT  --  Report as abuse
stummoss wrote:

looks like Chase CEO’s in for another BIG bonus for job well done!

May 11, 2012 5:36pm EDT  --  Report as abuse
Pullum wrote:

When will these ‘robber baron” bankers be subject to the rule of law ?

May 11, 2012 6:18pm EDT  --  Report as abuse
gregbooth wrote:

When they loose money and are not bailed out is the one and only time they do something useful for society. Unfortunately they usually make money and the money comes from people who actually provide goods and services. The financial industry has become a giant mosquito and society is the victim.

May 11, 2012 7:54pm EDT  --  Report as abuse
gregbooth wrote:

When they loose money and are not bailed out is the one and only time they do something useful for society. Unfortunately they usually make money and the money comes from people who actually provide goods and services. The financial industry has become a giant mosquito and society is the victim.

May 11, 2012 8:08pm EDT  --  Report as abuse

Why are any comments that mention silver not being displayed for this article?

May 12, 2012 6:17am EDT  --  Report as abuse
snuff wrote:

What do they care it is not their money and if it gets real bad the Fed will prop them up. They pay Dimon and idiots like this Bruno Iksil millions of dollars to “manage” other peoples money and then they walk around like gods….for what? What has Dimon built? During the bailouts they tried hard to convince the American people that you had to pay big bucks for the talent to run a big bank or brokerage house, the “big time” talent won’t do it for cheap and there just aren’t that many people capable of running the show……..what a load of sh!t!! Dimon makes 23 mil a year to run a bank that cannot fail!!! How much “talent” does that take????? And how much do you really deserve for it? I am all for people making money BUT Dimon and others like him are making millions off our deposited money and our tax dollars. They are gov’t employees for all intensive purposes.

May 12, 2012 9:47am EDT  --  Report as abuse
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