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JPMorgan admits billions of losses from flawed trading strategy with derivatives
The US mega-bank JPMorgan Chase & Co loss from derivatives trading may widen to 5 billion dollars, the Wall Street Journal reported on Friday. CEO Jamie Dimon personally approved the strategy that led to the trades, without monitoring how they were executed, the newspaper said. Read full article
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Disclaimer & comment rulesJPMorgan admits billions of losses from flawed trading strategy with derivatives
May 18th, 2012 - 08:10 pm - Link - Report abuse 0What happens? The brits scum in this forum are mute,about the corrupt bankers and politicians,involving mainly USA and uk???
llosa: I am waiting for your comments....
MAy be need the PERONISTAS to fix it..
Malvinero1 -- You're so right. This dirtbag (Dimon) has been fleecing Mainstreet and then runs like a crybaby to the Fed for 'bailouts' everytime he gets his 'bolas' in a squeeze. If that's not enough, their derivatives desk, run by the infamous Blythe Masters (talk about brit scum) has been aggressively shorting precious metal paper contracts (can you say, “silver”?) they don't have to hammer the price down for at least the last decade or two (no theory here, just documented FACT)...but then, don't get me started. I say we start hanging a few freakin' bankers...that would change things overnight.
May 18th, 2012 - 08:25 pm - Link - Report abuse 0The UK based JP Morgan’s broker had produced the following balance sheet:
May 19th, 2012 - 04:45 am - Link - Report abuse 0He had earned 14m dollars in salary + bonuses
He reported 100m dollars in earnings for JP Morgan
But he lost 2bn dollars in the gambling.
US taxpayers surely will bailout JPM for the hole and everyone happy until the next Great Brit Ponzi scam.
This is very interesting and something about which the ordinary person has no knowledge. The modern history of our problems can be traced from the early 90s. Some examples are
May 19th, 2012 - 04:57 am - Link - Report abuse 0(a) Davila the copper futures trader who worked for CODELCO . Loss was US$ 240 million (1994)
(b) Nic Leeson who caused the crash of Barings Bank (1995)
(c) LCTM (Long Term Capital Management) There is a book on this called WHEN GENIUS FAILED (1998)
LTCM in 1997 was only a single hedge fund whose leveraged bad bets induced the Fed to ease excessively and contributed greatly to the internet bubble in the late 90's. Plenty of warning about derivatives then.
Here is a reader;s comment from
http://seekingalpha.com/article/198197-why-derivatives-caused-financial-crisis
The lesson Wall St. and Washington took was, however, there is always a bailout, a Greenspan/Bernanke put for their errors that only induces the next, far worse catastrophe. And that punishment for criminal fraudulence never extends to Wall St. or Washington. They make these “gentlemen's bets” for ever-higher stakes knowing that it's only OPM and that it's our kids who will pay.
Interesting
Warren Buffet has called these financial instruments WMFD
(Weapons of mass financial destruction)
Wall Street is just a giant financial casino
One professor I knew said that one should first apply common sense before applying mathematics blindly
I believe that London is now the acknowledged centre for derivatives trading because anything goes there
Let's wait for the next crisis
CAVEAT EMPTOR
Latest News
May 19th, 2012 - 07:09 am - Link - Report abuse 0Paul Krugman forecast a “Corralito” Arg 2001 style for Spain, Greece and Italy.
I don’t agree with him that Italian will move their savings to Germany otherwise to Zurigo Svizzera (Switzerland) as they have done in previous crisis like in 1992.
http://krugman.blogs.nytimes.com/2012/05/13/eurodammerung-2/?smid=tw-NytimesKrugman&seid=auto
Next Britain “Corralito” I can predict this for the end of 2012 or may be beginning of 2013.
Well sorry mates I cannot be so precise I’m human after all. Ha ha ha
Settle down boys; Argentina still remains in default on its debt to the Paris club of sovereign creditors and has failed to pay the sums that the World Bank's International Centre for the Settlement of Investment Dispute has determined it owes foreign companies.
May 19th, 2012 - 03:09 pm - Link - Report abuse 0@Brit Bob
May 19th, 2012 - 03:29 pm - Link - Report abuse 0And Who cares?
(4) Ozgood
May 19th, 2012 - 03:36 pm - Link - Report abuse 0You say:
This is very interesting and something about which the ordinary person has no knowledge………..
Then you continue with a quite realistic and not unintelligent analysis……….
But ............... when it comes to Argentina’s struggle against those very same “gentlemen's bets” you mention, you comments are in line with those of the most ordinary brainwashed turnips in here….
Why is that?
@7
May 19th, 2012 - 03:46 pm - Link - Report abuse 0The ordinary Argentinian in the street will care when the money men come knocking on the door. When Argentina becomes a periah state like Venezuela.
Meanwhile...Jamie chokes on his coffee as he opens his 'trading screen', desperate to see his 'bad bet' unwound, only to break into a deep sob as he sees that Blythe's attempts to unwind the deal is being savagely opposed by rival (and vengeful) traders...$3Bn and counting...http://www.independent.co.uk/news/business/news/jpmorgan-shares-lurch-down-again-as-trading-losses-hit-3bn-7763965.html
May 19th, 2012 - 09:07 pm - Link - Report abuse 0Think
May 20th, 2012 - 03:14 am - Link - Report abuse 0I will try to answer you later on your last point
When the next “”corralito“” arrives CFK will leave by helicopter from the roof of the Casa Rosada just as one of her predecessors, Ferdinand de la Ru(in)a did in 2000.
Intelligent thinking people in Argentina are very worried about the current situation which the world is facing. No amount of obfuscating from the G8 will assuage their doubts
@ Brit Bob #9
May 20th, 2012 - 05:49 am - Link - Report abuse 0I guess you have not idea of what you are talking about but just in case I will explain you what are the real consequences of any measure from outside to turn Arg. in to a “pariah” and not “periah” as you said nation.
1- In 2000 the international financial sector declared ARG as a “pariah” nation and until now ARG is banned to borrow abroad.
Was that so bad? Nope on the contrary was extremely good for local manufactures and business.
Here my own example, before we were importing some stuff only made in US to supply local clients in Argentina.
Now we are exporting the same product “made in Argentina” to Chile, Uruguay, Brasil and Spain and we accept local currencies like Real, Arg. Pesos etc.
2- Argentina as I said before is not borrowing abroad so if Argentina defaults again, this only will have consequences for former lenders because what can they do?
3- If you try to banned me to export lets say EU for example, no problem I export first to Uruguay and then to EU what the problem. Don’t like Uruguay son Brasil then, etc, etc. You will have to ban the whole world I guess. Ha ha
4- My question for you and what will you do when UK & USA become the pariah states when China and others refuse to lend you money anymore?
Ok US is a rich country and like Argentina they have resources to live on their means but UK?
So tell me please how will you survive when none will lend you money anymore to afford your imports?
(11) Ozgood
May 20th, 2012 - 07:40 am - Link - Report abuse 0Well you are confirming my assumption about your utter ignorance of Argentinean affairs and context by calling him ”Ferdinand” and naming year 2000 as the one of his demise…….
Like so many other turnips in here you seem to only read the Neo-Liberal Anglo Saxon Press views (Wall Street Journal, The Economist, Miami Herald etc.) about Argentina, that picks, chooses and mixes information from different historical, social and economical periods of our Country to try to restrain and control this “Unruly Nation” that doesn’t want to follow their way……
They have done this many times before, all over the world…..
You, as a South African, should know all this if you are not at total Rooinek.
And lastly……., you fall all in for their doomsdays prophecies about Argentina.
Citizens of the world ……repent….
World is ending tomorrow…
Sorry but…. Boooring….
Hello.
May 20th, 2012 - 07:46 am - Link - Report abuse 0I'm an Englishman, and I can assure you that the majority of the serfs this side of the pond have little or no idea what occurs inside of Rothschild's fiefdom - the City of London.
Calling us all 'Brit Scum' is a little divide-and-conquer, don't you think? The banksters are global, and operate out of the US as well as European cities. The people have little notion of their predicament.
Anyway, JPM is toast, as is the FED, the $US, the £GB, and the euro.
Get physical PM's and ride it out.
Try not to blame your fellow serfs from different countries.............that is what the 'elite' want you to do.
Peace
@reality check
May 20th, 2012 - 08:49 am - Link - Report abuse 0http://www.thesun.co.uk/sol/homepage/news/4327433/England-v-Argentina-we-bring-on-the-sub.html
As I said before I guess we are going to have a lot of fun hunting each other so let’s face it you will not be happy until 6000 will have to die and the Argie Army kill all the islanders I guess.
Let it be so but with music
Feuer Frei Bäng Bäng
http://www.thesun.co.uk/sol/homepage/news/4327433/England-v-Argentina-we-bring-on-the-sub.html
BTW how are you going to bring your kebabs rations to the Islands????
@DannyBerger
May 20th, 2012 - 09:15 am - Link - Report abuse 0Less talk of WAR, please. Read my comment above yours if you've the time spare.
Peace
13 Think (#)
May 20th, 2012 - 09:47 am - Link - Report abuse 0I apologize for my mistake
Fernando de la Rua Fernando de la Rúa escaped frm the Casa Rosada by helicopter at the end of December 2001
I do not believe that I am more ignorant of what is happening in Argentina since I have family there, have been there on several occasions as well as having traveled through the country on my own. You can say whatever you like about me as I don't give a damn. I could use more profound language but decorum prevents me from doing so.
Just tell me why Chile is in a different situation to Argentina. Pinochet did a lot of nasty things but he brought good government to that country!
You should also read 14 CopperSterling (#) and analyse what he writes.
We are all in the hands of a global elite.
It seems to me that Argentines have a habit of choosing populist leaders.
It's quite likely that CFK may be forced to vacate the Casa Rosa just like de la Rua.
Remember what happened to Ceausescu - The ides of March have come but not yet gone, Caesar!
(17) Ozgood
May 20th, 2012 - 11:24 am - Link - Report abuse 0Was Raul Alfonsin a ”Populist” Leader ???
Was Carlos Menem a ”Populist” Leader ???
(Popular he was, with the Wizz Kids from Wall Street that ruined this Country with their Neo-Liberal finance politics; very similar to what’s happening today in USA and Europe)
Was Fernando de La Rua a ”Populist” Leader ???
Was Nestor Kirchner a ”Populist” Leader ???
(With only 22% of the vote in 2003)
Stop babbling about Nicolae Ceauşescu and helicopters…………….
Stop babbling about Chile….
Chile didn’t start anew in 2003 after a melt down and a bankruptcy. As a matter of fact, Chile’s economy during the past forty years has been stable thanks to the nationalization of their Copper by Salvador Allende.
If you do possess half the knowledge about Argentina you say you have, you would know from what conditions the present Argentinean Administration started in 2003……
And YES……..
We are MUCH BETTER now than in 2003…..
Even in the midst of the World’s worst financial crisis in man’s memory.....
This is not selective editing but I have quoted from Vargas Llosa's critique:
May 20th, 2012 - 01:40 pm - Link - Report abuse 0¿Como puede ser que séa el país empobrecido, caótico, subdesarrollado que es hoy? ¿Qué pasó? ¿Alguien lo invadió? ¿Estuvieron enfrascados en alguna guerra terrilble?
Nó, los argentinos se hicieron eso ellos mismos. Los argentinos eligieron a lo largo de medio siglo las peores opciones. Eso es. El peronismo es elegir el error, es el partido de los resentidos mas aberrantes, llenos de odio, de rencores viscerales, fascistas, enfermos de rabia inexplicable hacia todo lo bueno que sea diferente a su manera radical y fanática de ver las cosas, son por lo general incultos, ignorantes, mediocres
de mediocres!. El peronismo es perseverar en el error a pesar de manera
masoquista, enfermiza, en las catástrofes que se le han ido sucediendo en la historia moderna del país.
etc.
You think on the above. CFK is trying to start a dynasty in Argentina just like Syria (the Assad family) and North Korea.
I remember when Nestor Kirchner had his bypass, people 'phoned into the TV station wishing he would not survive - this is a fact.
Time will tell who is correct
Regarding Chile, the country is thriving because of the high copper price and not just because nationalisation. The world is experiencing a commodity boom which is wobbling at present. Hopefully this will pass
Why cannot Argentina also be in the same position as Chile with the tremendous resources it possesses? You think about it.
Admittedly the 1973 coup in Chile occurred either with the blessings of Nixon and Henry Kissinger or at their behest. It's possible that Chile today would be another Cuba if not for the intervention of Pinochet. This is pure speculation.
I am not going to get my blood pressure up because of you. I shall do some reading on Alfonsin. Menem and Domingo Cavallo privatised many things but the boom they brought about was not real. Currency pegs do not work
@12
May 20th, 2012 - 02:11 pm - Link - Report abuse 0Last time I looked the UK was still the 7th richest nation on the planet.
We will pay for our imports by balancing our books and honouring trade agreements. We will search and extract oil and other natural resources from around our shores and overseas...
Unlike Argentina we do not have to route our exports through other countries, or consider it, to escape penalties imposed by the EU, US, WTO etc.
(19) Ozgood
May 20th, 2012 - 08:31 pm - Link - Report abuse 0Admittedly, most, if not all of the coups in South America occurred either with the blessings of USA or at their behest.
It's quite possible that South America today would be much better off if not for the intervention of the USA.
We lost three decades because the North wanted us involved in their freaking “Cold War”.
And this is NOT pure speculation..................
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