JPMorgan reveals $2bn trading loss

[pseudonym]

What a bunch of suckers, this is the sort of gambling that helped get the world economy in the shit it's in, regulation to stop this sort of casino banking can not come to soon.


http://www.bbc.co.uk/news/business-18030022

 

[ditchy]

What a bunch of suckers, this is the sort of gambling that helped get the world economy in the shit it's in, regulation to stop this sort of casino banking can not come to soon.


http://www.bbc.co.uk/news/business-18030022

It will get worse as they have not unwound it yet , thats only a conservative marking of the asset . The fact that the Head guy has said that they will unwind it in an orderly manner speaks volumes for the fact that either they will sit on the position for a long while ,or they will take bigger losses in trying to unwind , as the rest of the markey knows what they have. They may also be under regulatory pressure to do something about it

 

[wakeytom]

It will get worse as they have not unwound it yet , thats only a conservative marking of the asset . The fact that the Head guy has said that they will unwind it in an orderly manner speaks volumes for the fact that either they will sit on the position for a long while ,or they will take bigger losses in trying to unwind , as the rest of the markey knows what they have. They may also be under regulatory pressure to do something about it

The problem is now it is in the open market it will be very difficult to unwind quickly without huge losses as the buyers will only buy at a huge premium

 

[Brixtaan]

Can't help but laugh. Hopefully heads will roll and we have another exciting drama similar to Lehman Bros.

 

[ditchy]

Can't help but laugh. Hopefully heads will roll and we have another exciting drama similar to Lehman Bros.

If JP Morgan go it will be 10 times worse than Lehman

 

[User removed 4]

The problem is now it is in the open market it will be very difficult to unwind quickly without huge losses as the buyers will only buy at a huge premium

Do you mean discount ? The thing is with these losses, is that the original entry to the positions was sanctioned at high level, these arent losses caused by some rogue trader, and to be fair, while 2 billion sounds like a huge loss to the man on the street, its not the sort of loss that will take jp morgan down, they have thee money to lose.

 

[Common as Mook]

Can't help but laugh. Hopefully heads will roll and we have another exciting drama similar to Lehman Bros.

Yeah, the 100s of thousand of people losing jobs the world over will be HILARIOUS! Especially those who are employed by JPM and do thoroughly good jobs. That would be priceless!!

 

[ditchy]

Do you mean discount ? The thing is with these losses, is that the original entry to the positions was sanctioned at high level, these arent losses caused by some rogue trader, and to be fair, while 2 billion sounds like a huge loss to the man on the street, its not the sort of loss that will take jp morgan down, they have thee money to lose.

looks like the losses will be nearer 4 billion. Still not enough to trake them down , but a big hole in their balence and infrasruture , which will almost certainly lead to cuts and job losses... Not a good day !

 

[Brixtaan]

Yeah, the 100s of thousand of people losing jobs the world over will be HILARIOUS! Especially those who are employed by JPM and do thoroughly good jobs. That would be priceless!!

Oh don't come over all precious and typically NSC 'right on' with me because I would hedge a bet (something I don't do globally with people's pensions) that you are in a minority in defending these casinos that have caused MILLIONS of redundancies and misery worldwide.
If this American investment bank is ten times the size then it will mean ten times the satisfaction in seeing these unregulated 'bookies' that caused the shit we are in .

 

[Kumquat]

Has anyone asked them if they have checked down the back of the sofa?

 

[ditchy]

[.
If this American investment bank is ten times the size then it will mean ten times the satisfaction in seeing these unregulated 'bookies' that caused the shit we are in .[/QUOTE]

Iam not defending them , just stating that they are so much bigger then Lehman was and that will cause many more problems and misery.. Its a fact of life almost human nature. This type of situation has been going on for many years .. from the "south sea bubble " , 1929 Wall St crash , and now are present problems, so its certainly not new .

 

[Gangsta]

The London derivatives desk caused this. Defensive (ha ha) calls was wot did it. I would bet some of it was on a Greece default which technically didn't happen thus saving many of their Wall Street bretheren a small fortune.

 

[User removed 4]

The London derivatives desk caused this. Defensive (ha ha) calls was wot did it. I would bet some of it was on a Greece default which technically didn't happen thus saving many of their Wall Street bretheren a small fortune.

edited due to dont want to get sued

 

[larus]

If anybody seriously thinks that the current situation in Japan, US, EU, UK is sustainable, then, IMO, you are deluded.

The problems are caused by all polical parties and the global elite.

Polical parties promise a 'something for nothing' message to the masses, with the 'invest/spend' today policies to be paid for by 'someone else' in the future. We're told that if we don't work, we'll get supported on the welfare state. The party is over.

The global elite use their influence to get tax policies implemented in governments around the world to allow them to pay nominal amounts of tax. Countries/tax-havens should be targetted by all the major governments. Simple rule; any activity which feels like it's being used for tax avoidance (individual/corporation) should be deemed as being avoidance, and taxed at source accordingly. If this was adopted by EU/UK/US/etc, then it would eliminate a vast amount of tac avoidance. Tax rates could then be set at a fairer level for a masses.

The 'left' also need to accept that the budget needs to be balanced and debt should be avoided (apart from over the economic cycle).

"Socialism fails when it runs out of other peoples money to spend."

The tories and labour are as bad as each other but in different ways. For all of labours years in office under TB/GB, what did they really achieve in tightening up tax avoidence. Jack shit.

The whole system is rigged to ensure that the elite/powerful get kept in luxury by screwing the majority. Politicians get corrupted with promises of a cushy number post office or well paid non-exec positions. Look at 'Red-Ken' with his legal tax-setup. The reality is very different from the image he has always tried to portray.

Society is totally unjust; bankers paid millions in bonuses for gambling with our money. They make huge losses and the tax-payer picks up the tab. They make huge profits and get paid huge bonuses which they then avoid paying tax on.
Minimum wage of £6.?? or wahtever. How can anyone really survive on that in the south and hope to raise a family? House prices - we're all blindly thinking that house price inflation above normal inflation is 'good'. Why? it's insane.....

OK - rant over!!!!!

 

[Lady Whistledown]

Can't they just go into administration, write off the debts, and then recruit a load more traders on massive salaries to try and get back to the top level again?

 

[Gangsta]

edited due to dont want to get sued

Nothing edited The first two statements are from JPM and the last is purely a guess - not saying its what definately happened.

 

[User removed 4]

Nothing edited The first two statements are from JPM and the last is purely a guess - not saying its what definately happened.

I edited what I posted, I posted something which is common knowledge in the mkt, however I and my company do a lot of business with JP Morgan,and discretion is the better part of valour, the internet scares me !

 

[Brixtaan]

I edited what I posted, I posted something which is common knowledge in the mkt, however I and my company do a lot of business with JP Morgan,and discretion is the better part of valour, the internet scares me !

Come on, spit it out,you're amongst friends

 

[wakeytom]

Do you mean discount ? The thing is with these losses, is that the original entry to the positions was sanctioned at high level, these arent losses caused by some rogue trader, and to be fair, while 2 billion sounds like a huge loss to the man on the street, its not the sort of loss that will take jp morgan down, they have thee money to lose.

Sorry was still half asleep but exactly what I meant

 

[JJB]

From people ITK, I can say they're in a whole lot of shit (apparently). $2bn is a VERY conservative number, their positions could be standing at a loss of circa $6bn. Not sure how they'd get out of that predicament as that is a whole shit load of money.