Jp morgan carshing!!!

[Silver Rocket Bitches!]

Out of nowehere, JPM announced 40 minutes ago that it would hold an unscheduled 5pm call to coincide with the release of its 10-Q. Rumors were swirling as to why. The reason is as follows:


JPMORGAN SAYS CIO UNIT HAS SIGNIFICANT MARK-TO-MARKET LOSSES - "Fortress balance sheet" at least until Bruno Iskil gets done with it.

JPMORGAN SAYS LOSSES ARE IN SYNTHETIC CREDIT PORTFOLIO - but, but, net is NEVER, EVER Gross.
JPM WOULD NEED $971M ADDED COLLATERAL IF RATINGS CUT ONE-NOTCH
JPM WOULD NEED $1.7B ADDED COLLATERAL IF RATINGS CUT 2 NOTCHES - how about three notches?
JPMORGAN: MAY HOLD SOME SYNTHETIC CREDIT POSITIONS LONG TERM - "Level 3 CDS FTW"
"As of March 31, 2012, the value of CIO's total AFS securities portfolio exceeded its cost by approximately $8 billion"

As a reminder, the CIO unit is where Bruno Iksil was making $200 billion-sized bets. Basically JPM has suffered massive losses at its CIO group most likely due to its IG/HY positions held by Iksil.






In Corporate, within the Corporate/Private Equity segment, net income (excluding Private Equity results and litigation expense) for the second quarter is currently estimated to be a loss of approximately $800 million. (Prior guidance for Corporate quarterly net income (excluding Private Equity results, litigation expense and nonrecurring significant items) was approximately $200 million.) Actual second quarter results could be substantially different from the current estimate and will depend on market levels and portfolio actions related to investments held by the Chief Investment Office (CIO), as well as other activities in Corporate during the remainder of the quarter.

Since March 31, 2012, CIO has had significant mark-to-market losses in its synthetic credit portfolio, and this portfolio has proven to be riskier, more volatile and less effective as an economic hedge than the Firm previously believed. The losses in CIO's synthetic credit portfolio have been partially offset by realized gains from sales, predominantly of credit-related positions, in CIO's AFS securities portfolio. As of March 31, 2012, the value of CIO's total AFS securities portfolio exceeded its cost by approximately $8 billion. Since then, this portfolio (inclusive of the realized gains in the second quarter to date) has appreciated in value.

The Firm is currently repositioning CIO's synthetic credit portfolio, which it is doing in conjunction with its assessment of the Firm's overall credit exposure. As this repositioning is being effected in a manner designed to maximize economic value, CIO may hold certain of its current synthetic credit positions for the longer term
http://www.zerohedge.com/news/jpm-crashing-after-it-convenes-emergency-call-advise-significant-mark-market-losses

[General of Darkness]

Bail them out so they're sure to all get their bonuses.

[solid]

Bail them out so they're sure to all get their bonuses.

That's what will most likely happen.

QE3.

There may be a good opportunity to add to the stack temporarily.

[Gaillo]

Their shares have dropped 7% so far... whee!!! ;D

Couldn't have happened to a nicer bunch...

[Serpo]

http://ts3.mm.bing.net/images/thumbnail.aspx?q=4860889926075650&id=22ec5604454925809e0fa16578b7ec50&url=http%3a%2f%2fimgs.mi9.com%2fuploads%2f3d%2f21% 2fcrying-face_1280x800_323.jpgNNNNNNNNNNNNNNOOOOOOOOOOOOOOO OO (http://imgs.mi9.com/uploads/3d/21/crying-face_1280x800_323.jpg)

[General of Darkness]

Just think about this. If JP Morgan goes bust, PM's should go through the roof because the main fuckers suppressing the price has been JP. IMHO.

[mick silver]

but but GoD What about my paper money ... oh my oh me what to do now

[solid]

Just think about this. If JP Morgan goes bust, PM's should go through the roof because the main fuckers suppressing the price has been JP. IMHO.

I think PM's would crash first.

They will not let JP Morgan go belly up. They will induce fear though, to further take from the people and increase their fat wallets.

[Silver Rocket Bitches!]

Something smells fishy and I don't just think it's Blythe Masters' cunt.

Since when do they mark-to-market OTC derivatives? Aren't they still playing the fantasy game where whatever they write in their books is the value of the security?

[Spectrism]

What pisses me off is the only profiters from this will be the insiders who saw it coming or were informed... sure would be nice to have an actual honest SEC who would investigate the players around these.

[EE_]

The information must have been leaking out, or they would have held the news until Friday after hours. They insiders didn't want to miss the opportunity to cash in before anyone else.
I wonder if the other banks are involved in the scam?

[Sparky]

JPM might be the biggest beneficiary. They've know this bombshell was coming. Do you think perhaps they've been loading up on market short positions in the weeks leading up to this announcement? I suppose that would be illegal

Jamie Dimon was dramatically negative during this disclosure, claiming that "things could get even worse this quarter". I smell a rat.

[Mouse]

Holding down the price of PM's costs a lot of money. I would bet this is a three card monty to cover up the losses incurred to keep shorting PM to zero.

[gunDriller]

Holding down the price of PM's costs a lot of money. I would bet this is a three card monty to cover up the losses incurred to keep shorting PM to zero.

$2 billion losses in 6 weeks.

quite a shopping spree.


CRASH JP Morgue, BUY SILVER !!

i think if there was ever a time to buy silver, price-wise and politics-wise, THIS IS IT.

problem is, we don't know exactly how much JPMorgue has in naked short positions (and at what prices), besides A LOT.

bought 28 ounces last week & 20 ounces today. if we could get 500,000 times that amount of silver purchased, would it pull all that out of Comex (24 million ounces) and crash Comex ? if Comex crashed, would it benefit JP Morgan by interfering with the delivery of physical ?

on the other hand, with the approx. 100:1 paper/physical ratio - taking 48 ounces of physical out of the m arket is like taking 4800 ounces of paper out. JP Morgue's short position is about 500,000,000 ounces. so, if 100,000 people bought 50 ounces of physical - would that be enough to crash JP Morgue ?

if so, let me know, i'll buy 2 more ounces :) i want to do my part !

[Twisted Titan]

Buy what you can as best you can afford.....and sit back n relax with the knowlege that you are on the right of the play.

[beefsteak]

bought 28 ounces last week & 20 ounces today. if we could get 500,000 times that amount of silver purchased, would it pull all that out of Comex (24 million ounces) and crash Comex ? if Comex crashed, would it benefit JP Morgan by interfering with the delivery of physical ?

on the other hand, with the approx. 100:1 paper/physical ratio - taking 48 ounces of physical out of the m arket is like taking 4800 ounces of paper out. JP Morgue's short position is about 500,000,000 ounces. so, if 100,000 people bought 50 ounces of physical - would that be enough to crash JP Morgue ?

if so, let me know, i'll buy 2 more ounces :) i want to do my part !

Funny Gunny!

Whilst your doing yer part, just remember this...the COMEX is about 1/20th if not smaller, the volumetric size of just one other bourse.....the LME.

It may be even smaller % now that Shanghai has "opened for SILVER biz" after temporarily shelving their earlier plans to open their gold bourse first."

I'm reminded of the old saw, "bulls make money; bears make money. Pigs get gored"---and morgued as in this case. JPM sunk MFGlobal last time they got their silver short margin call.

Wonder who the sacrifical "counterparty" will be this time. WHOA!

Just grist for your mill, gunny.


beefsteak

[chad]

just ordered 100 ounces, doing my part. :D

[General of Darkness]

just ordered 100 ounces, doing my part. :D

* ALERT * - Just as a reminder, every time Chad buys silver it drops to later today might be an even better time to buy. :)

[steyr_m]

I think PM's would crash first.

They will not let JP Morgan go belly up.

I agree, they are "Too big to fail" I may play the market a bit and sell some of my silver now and buy back at a bargain. ....but I'll need to look into it a bit more

[Horn]

Balancing the Euro crash to the other side of the Atlantic..

[chad]

* ALERT * - Just as a reminder, every time Chad buys silver it drops to later today might be an even better time to buy. :)

i agree :(

[JohnQPublic]

This could be the tip of the final derivatives crash iceberg.

http://demonocracy.info/infographics/usa/derivatives/bank_exposure.html

"JP Morgan Chase has a derivative exposure of $70.151 Trillion dollars.
$70 Trillion is roughly the size of the entire world's economy.
The $1 Trillion dollar towers are double-stacked @ 930 feet (248 m)."

[Uncle Salty]

Rogue trader! Rogue trader! Rogue trader!

Yeah, that's what happened. Not systemic fraud, but a Rogue Trader!!

[JDRock]

well if any of you remember jd rockinfeller, the stock trading gunslinger from days gone by...im in .....i just bought the most silver i have EVER purchased. Remember bear-stearns ;)

[Neuro]

I smell a paper settlement of the longs on the opposite of JPM's shorts...

[DMac]

well if any of you remember jd rockinfeller, the stock trading gunslinger from days gone by...im in .....i just bought the most silver i have EVER purchased. Remember bear-stearns ;)

This is a nice hit on my 'to da moon' index. Thanks JD

[Silver Rocket Bitches!]

JPM stock down 10%! Feels good man.

[Gaillo]

JPM stock down 10%! Feels good man.

I was just about to post the exact same thing...

Blythe Masters (the wicked bitch of the east) must be having a VERY bad day! ;D

[Neuro]

Any news yet about what Dimon said? I have a feeling this is way bigger than $2 Billion in trading losses...

[JohnQPublic]

Fitch Downgrades JPM To A+, Watch Negative (http://www.zerohedge.com/news/fitch-downgrades-jpm-watch-negative)

Submitted by Tyler Durden (http://www.zerohedge.com/users/tyler-durden) on 05/11/2012 16:30 -0400



So it begins, even as it explains why the Dimon announcement was on Thursday - why to give the rating agencies the benefit of the Friday 5 o'clock bomb of course:


JPMorgan Cut by Fitch to A+/F1; L-T IDR on Watch Negative

What was the one notch collateral call again? And when is the Morgan Stanley 3 notch cut coming? Ah yes:
http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2012/05/Collateral%20losses_0.jpg (http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2012/05/Collateral%20losses.jpg)
So... another $2.1 billion just got Corzined? Little by little, these are adding up.
Oh and guess who it was that downgraded JPM exactly a month ago. Who else but SEC public enemy number one: Egan-Jones (http://www.zerohedge.com/news/egan-jones-downgrades-jpmorgan):



Synopsis: Reliance on prop trading and inv bkg income remain. LLR declines (down $1.7B QoQ and $3.87B YoY) offset DVA losses in the investment bank. Wholesale loans were up 23% YoY and 2% QoQ. Middle Mkt, Cmml Term, Corp Client and Cmml Real Estate lending increased by 9%, 2%, 16% and 19% YoY. Middle Mkt and Corp lending was up 2% and 3% QoQ respectively, while Cmml Term, and Cmml Real Estate lending were down 2%, and 9% respectively. Card and consumer loans were down 2% and 5% YoY respectively (down 5% and 1% QoQ respectively). Non accruals are up 14% QoQ due to weakness in JPM's student loan portfolio. Reserve coverage is good and capital is adequate. We believe JPM will experience further weakness in its retail portfolio due to a softening economy. We are downgrading.
Full Fitch "analysis":
FITCH DOWNGRADES JPMORGAN TO 'A+/F1'; L-T IDR ON WATCH NEGATIVE

Fitch Ratings-New York-11 May 2012: Fitch Ratings has downgraded JPMorgan Chase & Co.'s (JPM) Long-term Issuer Default Rating (IDR) to 'A+' from 'AA-' and its Short-term IDR to 'F1' from 'F1+'. Fitch has placed all parent and subsidiary long-term ratings on Rating Watch Negative.

Fitch has also downgraded JPM's viability rating (VR) to 'a+' from 'aa-' and placed it on Rating Watch Negative. In addition, Fitch affirmed JPM's '1'
support rating and 'A' support rating floor. A full list of rating actions follows at the end of this release.

The rating actions follow JPM's disclosure yesterday of a $2 billion trading loss on its synthetic credit positions in its Chief Investment Office (CIO). The positions were intended to hedge JPM's overall credit exposure, particularly during periods of credit stress.

Fitch views the size of loss as manageable. That said, the magnitude of the loss and ongoing nature of these positions implies a lack of liquidity. 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.

Still, at the 'A+' level JPM's ratings continue to reflect its dominant domestic franchise as well as its solid and growing international franchise in investment banking and commercial banking. Capital remains sound and compares well with global peers, providing the bank with sufficient cushion to absorb a material idiosyncratic loss event. Fitch believes JPM continues to be well prepared to meet the minimum standards under Basel III.

Like other global trading and universal banks (GTUBs), the complexity of JPM's operations makes it difficult to fully assess the risk exposure. This trading loss is precisely the kind of risk factor inherent in the GTUB business model.
Fitch believes JPM, like other GTUBs, is in a highly confidence sensitive business and the longer-term implications for the firm's reputation are not yet known. As a result, Fitch believes JPM's ratings remain at heightened risk for downgrade until the firm's risk governance practices, appetite, oversight and reputational impact can be further reviewed.

In addition, ongoing volatility and further losses are likely to arise from these positions as the firm unwinds them, creating some uncertainty. The firm's Value at Risk (VaR) methodology was also changed in first-quarter 2012 (1Q'12) but subsequently reverted back to the original methodology. This resulted in a near doubling of VaR to $170 million, from 4Q'11 VaR of $88 million. The variance emanated from the CIO VaR and a negative $47 million diversification benefit. Fitch believes this also highlights some problems with modeling related to this portfolio.

Resolution of the Rating Watch Negative will conclude upon a further review of how JPM has addressed what Fitch views to be risk management and oversight deficiencies that allowed such a loss to occur. Fitch will also attempt to assess the future earnings and capital impact from these exposures. Fitch will also review the potential implications for market confidence in JPMand reputational damage as a result of this loss on both its liquidity profile and counterparty and dealings.

Fitch believes the Rating Watch resolution could result in a further downgrade of one notch if the risks are not appropriately sized and addressed. The complexity and opacity of these positions may also result in lingering concerns around the firm.

A return to a Stable Outlook will be dependent upon Fitch's ability to gain comfort with the risk management concerns, potential ongoing nature of these synthetic credit positions and volatility they may create, as well as the reputation issues raised.

Fitch has placed all of the ratings below (with the exception of the short-term and commercial paper ratings) on Rating Watch Negative.

[JDRock]

OF COURSE they are going to continue manipulating the pos..... it defines what they do. however, this seems to be the beginnings of the house of cards coming down....will it be immediate? No! but just like the frn, the clock is ticking...the writing is on the wall for these bastards...the feet of clay are beginning to crumble, and it WILL 'bear stearns"...its just a matter of how soon. they NEED $3.3 BILLION dollars in physical to cover their shorts! at any rate IGNORE the uptick/downtick of the phony kitko #s, and instead listen to the tick tick tick of the bomb about to go off on the real pos.

[Spectrism]

All that needs to happen is the fear of a worse crisis so that a secret meeting will be convened with much hand wringing and whispered worries.... and there will be a simple transfer of funds from the FED and all will be well again.

I think that deserves a happy face. ;D

[Shami-Amourae]

https://lh5.googleusercontent.com/-rQYnaY43Tk0/T61UCq8xRvI/AAAAAAAAHsQ/iNOi97-bRcQ/s640/IS%2520HE%2520MOM%2520ENOUGH.png

[Spectrism]

Now Shami.... that is a real carshing. It is eewwww and trew at the same time.

[Mouse]

There is some serious lying going on here:

"In addition, ongoing volatility and further losses are likely to arise from these positions as the firm unwinds them, creating some uncertainty. The firm's Value at Risk (VaR) methodology was also changed in first-quarter 2012 (1Q'12) but subsequently reverted back to the original methodology. This resulted in a near doubling of VaR to $170 million, from 4Q'11 VaR of $88 million. The variance emanated from the CIO VaR and a negative $47 million diversification benefit. Fitch believes this also highlights some problems with modeling related to this portfolio."

What the hell kind of tail event happened here? How do you lose $2bn on a Value-at-Risk of $170mm? They must be running VaR at 80% Confidence or something.

Other tells: If they were hedging credit risk as stated - then wouldn't the CDO's/CDS's be MORE in the money, given that the whole fucking global economy is crumbling to shit? I think they must have written REVERSE CDO's to protect SOVEREIGN's against THEIR OWN credit risk and somehow call this shit a hedge. How the fuck do you lose $2bn hedging against credit default instrument/positions when NOBODY'S credit ratings are IMPROVING. They weren't hedging shit, they were pure naked prop booking these CDO's. They were selling CDS to everyone on planet of the apes against EURO defaults, and now they got their pants around their ankles.

Do I buy the silver now or wait? That is the question. I am about ready to pull on a couple thousand face and I can't figure this out.

[Spectrism]

Mouse- I have gotten screwed by buying and selling things when it would seem the best time.... but the fricken bastards whimsically manipulated the market ripping the ground out from under me. There is no way to know when the right time is as these thieving beasts don't play fair.

[gunDriller]

Do I buy the silver now or wait? That is the question. I am about ready to pull on a couple thousand face and I can't figure this out.

the spreads have started increasing. retail silver products are available now, i.e. in stock.

one option is to spend $1K now & to hold $1K in reserve in case the Gold Paperologists produce more "Gold Price Black Magic" next week.


i think the whole PM market is in a state of profound paper induced delusion, leading to genuine doubt among some investors - one of the objectives no doubt.

but out in the real world, the statistics are popping out. e.g., Mexico added 15 tons to their reserves in March, 2012.

Russia, China, Mexico - many central banks are Hoovering up large quantities of gold. certainly more than is covered by this year's production - with gold miners talking about their "3 grams per ton" yields (that's a very low yield, and their energy costs are generally increasing.)

[steyr_m]

Do I buy the silver now or wait?

That's the $64k question. I'm asking myself how connected are they for a "Too big to fail bail-out"

If allowed to fail, I believe Ag will literally "go to the moon" then buy before. If there is [or if I forsee one in the future] a bail-out, then Ag will drop like a rock and then will be the time to buy -- because you know money printing will make it expensive once again... Anyone else's thoughts?

But now that I think of it.... if JPM is crashing, shouldn't Ag be going up -- not down.

[Spectrism]

That's the $64k question. I'm asking myself how connected are they for a "Too big to fail bail-out"

If allowed to fail, I believe Ag will literally "go to the moon" then buy before. If there is [or if I forsee one in the future] a bail-out, then Ag will drop like a rock and then will be the time to buy -- because you know money printing will make it expensive once again... Anyone else's thoughts?

But now that I think of it.... if JPM is crashing, shouldn't Ag be going up -- not down.

Heck Penguins, I see it just the opposite. If they don't bail out JPM, the banks crash.... and much of the economy.... including PMs. If they do bail out, that is extra $$$ floated into the market.

[steyr_m]

Heck Penguins, I see it just the opposite. If they don't bail out JPM, the banks crash.... and much of the economy.... including PMs. If they do bail out, that is extra $$$ floated into the market.

Yeah, but JPM [I believe] going down won't take down the entire global economy. Just a bunch of saps holding paper silver. If bailed out, the charade can continue.

[steyr_m]

Heck Penguins,

You know, I wish I could pet those penguins someday.... you know -- rub their tummies.

[Spectrism]

You know, I wish I could pet those penguins someday.... you know -- rub their tummies.

They might bring you good luck. Or, you could pretend you are a thirsty 3 year old who has not yet been weaned.




Yeah, but JPM [I believe] going down won't take down the entire global economy. Just a bunch of saps holding paper silver. If bailed out, the charade can continue.


AHhhhh... now I see what you mean.... paper. Yeup- those who think they have silver because they have an account somewhere will lose big. But the physical price will go up after a severe drop. I think it is possible that we will still see a dip in PM pricing... but there needs to be more printing of paper if they want to keep this ponzie scheme going for a while longer.

[steyr_m]

but there needs to be more printing of paper if they want to keep this ponzie scheme going for a while longer.

Exactly, if Ben Shalom throws them some tax payer money to make them look stable, I think the price will drop. Dunno time will tell. don't have lots of cash for PM's at the moment anyways.

[Silver Rocket Bitches!]

I can't figure out why this isn't cascading over with the other big 5 banks suffering derivative losses as well? If JPM is forced to mark-to-market, shouldn't GS, C, et al. be forced to as well?

???

[steyr_m]

I can't figure out why this isn't cascading over with the other big 5 banks suffering derivative losses as well? If JPM is forced to mark-to-market, shouldn't GS, C, et al. be forced to as well?

???

I thought this is because JPM has a huge short in SLV [and I don't fully understand the mechanics of this, but I get the jest of it] to supress the price of Ag. I don't think GS or the other usual suspects are. That's why I don't think that if JPM goes down it will take the whole global economy down. If for some strange reason GS does, then it might.... just my gut feeling.

[Large Sarge]

I thought this is because JPM has a huge short in SLV [and I don't fully understand the mechanics of this, but I get the jest of it] to supress the price of Ag. I don't think GS or the other usual suspects are. That's why I don't think that if JPM goes down it will take the whole global economy down. If for some strange reason GS does, then it might.... just my gut feeling.

hmmmm...

be a print or die scenario

someone posted they (JPM) have 71 trillion dollars in derivatives exposure

if JPM goes bankrupt, then those all come due,

[Silver Rocket Bitches!]

2783

They do appear to overshadow the rest of the playing field so it could be the others are taking their lumps quietly with accounting magic whereas JPM is forced to disclose.

[steyr_m]

someone posted they (JPM) have 71 trillion dollars in derivatives exposure

Let them fail then. If you own a f-ing Silver Dollar, you may feel like a millionare. Plus, the sooner the collapse, the sooner the recovery. The longer it's delayed, the worse it will be.

[steyr_m]

Holy Crap! GS is 34,262% in derivatives. What the hell is a "Fifth Third"?

[Silver Rocket Bitches!]

AWWWWW SHIT! Let the games begin!

NEW YORK (CNNMoney) -- The closing bell brought no relief for JPMorgan Chase on Friday, as a major credit rating agency moved to downgrade its debt almost exactly 24 hours after the bank revealed a $2 billion trading loss.
Fitch Ratings downgraded both JPMorgan's short-term and long-term debt, with the latter falling to A+ from AA-. The bank, the country's largest by assets, was also placed on ratings watch negative.


Fitch said it views the $2 billion loss as "manageable" but added that "the magnitude of the loss and ongoing nature of these positions implies a lack of liquidity."
"It also raises questions regarding JPM's risk appetite, risk management framework, practices and oversight," the agency said.

http://money.cnn.com/2012/05/11/markets/jpmorgan-fitch-downgrade/

[Neuro]

If JPM fails then the paper silver market will collapse fairly quickly and paper silver will reach it's intrinsic value fairly quickly. I think the same will happen to the derivatives market, and it will be the end of civilization.

JPM will be propped up no matter what. And it will be another nail in the coffin to hyperinflation...

[Horn]

Fitch Ratings downgraded both JPMorgan's short-term and long-term debt, with the latter falling to A+ from AA-. The bank, the country's largest by assets, was also placed on ratings watch negative.

Before the end of civilization, everyone will reach a paper paradigm equilibrium with B type credit rating.

[steyr_m]

JPM will be propped up no matter what. And it will be another nail in the coffin to hyperinflation...

Yeah, that's why I think they will get a bail-out and initially silver prices will tumble....

[Golden]

JPM Rumor Rumbling Large - Not Verified or Confirmed

http://www.youtube.com/watch?v=A9l4bN-e1T0
http://www.youtube.com/watch?v=A9l4bN-e1T0

[Silver Rocket Bitches!]

Video's removed. Musta been good.

[Golden]

(Click more info)

[JohnQPublic]

This could be an interesting week, starting with tomorrow.

[JohnQPublic]

An Ex-LTCM Trader Will Be Overseeing $70 Trillion In Derivatives (http://www.zerohedge.com/news/ex-ltcm-trader-will-be-overseeing-70-trillion-derivatives)



An Ex-LTCM Trader Will Be Overseeing $70 Trillion In Derivatives

http://www.zerohedge.com/sites/default/files/pictures/picture-5.jpg (http://www.zerohedge.com/users/tyler-durden)
Submitted by Tyler Durden (http://www.zerohedge.com/users/tyler-durden) on 05/14/2012 09:53 -0400


We wish to welcome former LTCM trader (http://alexmasterley.blogspot.com/2011/04/who-is-matt-zames.html), and current TBAC chairman (http://www.zerohedge.com/news/jpm-retires-ina-drew-appoints-chairman-treasury-borrowing-advisory-committee-cio-head), Matt Zames to his new post as head of the world's biggest, government backstopped prop trading desk, with a hearty and sincere "good luck." Because an ex-LTCMer in charge of ~$70 trillion in derivatives? Why, what can possibly go wrong...
http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2012/05/derivs%20by%20bank_0.jpg (http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2012/05/derivs%20by%20bank.jpg)
Well, maybe this?
http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2012/05/LTCM%20P%26L_0.png

[Spectrism]

LTCM = Long Term Capital Management

[gunDriller]

one of the biggest problems with credit derivatives is their invisibility.

if i was in a regulator position, i would invoke genuine national security concerns and force a complete disclosure of all credit derivative positions. then model them for various financial/ economic scenarios to better understand the risks and collapse scenarios.

of course, since derivatives are a world-wide market, that would involve imposing the will of the regulator organization on financial organizations worldwide. my guess is, many of them would not cooperate.


but since we don't have all the pieces of the puzzle, as 'outsiders' with some insight into financial markets and the wisdom of holding counterparty-risk-free assets, it is logical to assume that we are once again on the edge of the precipice.

since we are "protected" (GAG) by the "Good Will" of the banksters, who have made it 110% clear that their only concern is
A/ protecting their asses from prosecution, and
B/ profiting from insider trading, where possible ... etc.

[mick silver]

back up ..........
Why We Regulate ... What did JPMorgan actually do? As far as we can tell, it used the market for derivatives — complex financial instruments — to make a huge bet on the safety of corporate debt, something like the bets that the insurer A.I.G. made on housing debt a few years ago. The key point is not that the bet went bad; it is that institutions playing a key role in the financial system have no business making such bets, least of all when those institutions are backed by taxpayer guarantees. For the moment Mr. Dimon seems chastened, even admitting that maybe the proponents of stronger regulation have a point. It probably won't last; I expect Wall Street to be back to its usual arrogance within weeks if not days. But the truth is that we've just seen an object demonstration of why Wall Street does, in fact, need to be regulated. Thank you, Mr. Dimon. – New York Times
Dominant Social Theme: We need more of "it," please.
Free-Market Analysis: Paul Krugman is out with another weary defense of massive financial regulation. The US Leviathan is in the process of strip-searching seniors and infants at airports for reasons it cannot aggregately define, but Krugman is still a true believer.
Actually, of course, he is not. The New York Times, Krugman and a coterie of additional people and resources are seemingly part of a larger elite effort to first justify and then create global governance.
This idea, in fact, hinges on regulation. Without regulation there is no apparent reason for government, nor the mercantilism that it gives rise to. Regulation – its timeliness and appropriateness – must be defended at all costs. And defend it Krugman does.
Read More (http://www.thedailybell.com/3885/Thank-Goodness-for-Regulation) http://www.thedailybell.com/images/blackRightArrow.gif

[Golden]

Two Billion Dollar Tip of Banking Iceberg

http://www.youtube.com/watch?v=8aufSeGRZz0
http://www.youtube.com/watch?v=8aufSeGRZz0
Gerald Epstein: J.P. Morgan debacle shows systemic risk unchanged; breaking up big banks, reform Fed and public banking urgently required

Corporate Media and the Austerity Campaign

http://www.youtube.com/watch?v=mnPAII2yTeU
http://www.youtube.com/watch?v=mnPAII2yTeU
Bill Black: Most media treats austerity as a necessary solution, not a means to enforce the interests of finance

"The road to Bangladesh strategy"
A reserve army of unemployed so large as to crush the unions and reduce working class wages.

[JDRock]

well if any of you remember jd rockinfeller, the stock trading gunslinger from days gone by...im in .....i just bought the most silver i have EVER purchased. Remember bear-stearns ;)
"if you just take 1-2% ofhard asset pension fund $ earmarked for commodities and put that into gold, you can project much higher prices than even where we are today.." (robt gottlieb) trading director at JPM....when he said that, BEAR STEARNS was way short on silver....they COLLAPSED within weeks of his comments! guess WHO inherited BS's huge short position in silver???....yeah you guessed it JP Morgan ;) tick...tick ...tick... get more svl while you can imo...

[Awoke]

just ordered 100 ounces, doing my part. :D

Good job Chad. As expected, you drove the POS down.

* high five *

[Spectrism]

JPM has their stockholder meeting this morning. I see their stock price going up. See? Everything is fine.

[JDRock]

it will "carsh" eventually....they NEED gentile stockholders to stay on board....the smarter ones wil begin selling off slowly imho...

[Silver Rocket Bitches!]

Still carshing!

Admitted losses now up to $5 billion. Up from $2 billion in a week. Some say the loss was actually $100 billion and it was interest rate swaps that did it. There was someone who said when the interest rate swaps start goin, the whole house of cards comes down. I think it was Bob Chapman.

http://www.silverdoctors.com/jpms-cio-loss-widens-to-5-billion/

[vacuum]

Still carshing!

Admitted losses now up to $5 billion. Up from $2 billion in a week. Some say the loss was actually $100 billion and it was interest rate swaps that did it. There was someone who said when the interest rate swaps start goin, the whole house of cards comes down. I think it was Bob Chapman.

http://www.silverdoctors.com/jpms-cio-loss-widens-to-5-billion/
This one was pretty good:
http://i1259.photobucket.com/albums/ii545/marchas1/beanstalkcopy.jpg

[Neuro]

I see, "boiling the frog" tactic of bringing bad news! Several tens of billions is my bet. They wouldn't have special press conferences for a mere $2 Billion trading loss...

[Serpo]

JPM’s CIO Loss Widens to $5 Billion

http://www.silverdoctors.com/wp-content/uploads/2012/04/Full-Banner1.jpg (http://www.silverdoctors.com/sd-bullion-buy-gold-buy-silver/)

https://encrypted-tbn0.google.com/images?q=tbn:ANd9GcRRgJvnxkM85quM-5tu-Y0c2lqARQdM3k1-dmePb0U7t15IWI6E5gLast weekend we advised SD readers that our sources had informed us that JPMorgan’s derivatives losses sustained by their CIO desk were actually $100 Billion, not the $2 Billion admitted by Jamie Dimon to investors.
Well, one week later, the MSM (WSJ) is now reporting that JPM’s CIO has now lost $5 billion.
Perhaps more interesting, the WSJ states that Jamie Dimon personally approved the delta-hedging of its interest rate swaps positions which has resulted in the FUBAR derivatives losses for JPM.
So lets get this straight. The Big Cahuna who approved the strategy gets a $23 million bonus, and reappointed as CEO by shareholders, while Iksil and boss Achilles who implemented the trade for Dimon get shown the door and have The Morgue attempt to claw-back their bonuses?

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.
JPMorgan last week announced a 2 billion dollars trading loss on synthetic credit products, or derivatives tied to credit performance. Dimon said the transactions, intended to manage risk, were “egregious” failures by the bank’s chief investment office. JPMorgan has said the amount could increase by 1 billion or more as it winds down the positions.
Joseph Evangelisti, a spokesman for New York-based JPMorgan, declined to comment on the 5 billion dollar estimate.
The largest US lender by assets didn’t have a treasurer during the five months when the trades took place, the Journal reported in a separate article.
JPMorgan’s chief investment office oversees about 360 billion dollars, or the difference between deposits and what the bank lends. Matt Zames, who was appointed to lead the division after the loss was reported, shook up leadership and announced a “renewed focus” on hedging risks.
Read more (http://en.mercopress.com/2012/05/18/jpmorgan-admits-billions-of-losses-from-flawed-trading-strategy-with-derivatives?utm_source=feed&utm_medium=rss&utm_con tent=economy&utm_campaign=rss):


http://www.silverdoctors.com/jpms-cio-loss-widens-to-5-billion/

[Spectrism]

I see others are rivetted to the carshing. The train wreck is hard to look away from.

I hope the common slobs are stocked up on rope and pitchforks so they can make OWS look like a cub scouts gathering.

[Horn]

since we are "protected" (GAG) by the "Good Will" of the banksters, who have made it 110% clear that their only concern is
A/ protecting their asses from prosecution, and
B/ profiting from insider trading, where possible ... etc.

The larger portion of the bailout money never existed,

now the U.S. will receive austerity & the E.U. will welcome that same larger portion of nothing.

[osoab]

http://www.zerohedge.com/sites/default/files/pictures/picture-5.jpg (http://www.zerohedge.com/users/tyler-durden)
What Jamie Dimon Really Said: The CIA's Take (http://www.zerohedge.com/news/what-jamie-dimon-really-said-cias-take)

[Silver Rocket Bitches!]

Payin lip service to his masters.


http://www.youtube.com/watch?v=YlN57T4wNBA

::)

[vacuum]

I see, "boiling the frog" tactic of bringing bad news! Several tens of billions is my bet. They wouldn't have special press conferences for a mere $2 Billion trading loss...
Good point. It seems like nothing, yet the news is being pumped. Only by pre-hyping it will people not care about the subsequent news.