JP Morgan chase - 7Billion loss and counting

The number being bandied about now is closer to a range of $6 billion to $7 billion, according to several people working on trading desks that specialize in the derivatives JPMorgan Chase (JPM, Fortune 500) used to make its trades and from two sources with knowledge of the bank's positions.

money.cnn.com...

But how bad can it become?

Lets look how the big picture looks like: demonocracy.info...

When JP Morgan - "the finest and best managed" is going down - the S will H the F...

Link

JP Morgan will ultimately hit the wall on its enormous derivatives book and become technically insolvent. But because JPM is the primary bank doing the Fed's manipulative bidding, the Fed will monetize it behind the scenes because otherwise JPM's catastrophic, fraudulent predicament will bring down the entire system.

Speaking Fed liquidity, we will likely never see any sign of it other than a big move of gold and silver, but based on some extensive reading and conversations about the JP Morgan situation, I believe the "tempest in a teapot" bad hedge loss at JP Morgan is running into the $10's of billions on a true market to market and collateral call basis and that it extends to many areas of JPM's derivatives positions. Again, this is something that we will never know unless the Government forces JPM to open its books - something that will NEVER happen. There are a lot of theories on how, what and why with regard to JPM's massive derivatives-related losses on a $100 billion portfolio of supposedly hedged positions. Since it is likely that taxpayer insured money has been employed, there is no reason for there to be any speculation on what is going on. JPM should be required to provide full disclosure and transparency in order to protect the interests of the taxpayers.

reply to post by deckdel


Well im just happy that their being investigated now by the FBI... Actually what am I thinking, the FBI is incompitent, they will likely find nothing and recommend that all JP Morgan execs get monster bonuses....

There is almost certainly more to this story then we are being told.

JP Morgan is quite possibly the "canary in the coal mine". More losses on the way, you can bet on it.

Economic recovery? "Green shoots"?

Sorry, not buying what they are peddling. The economic crisis is most likely heading into Round 2. It's going to get interesting, that's for sure.

Every trading loss is someone else's profit.
Follow the money, it has to lead somewhere.

Sorry I dislike JP Morgan and Chase because of a dispute on a credit card for less than one thousand dollars. They ended up spending that much on lawyers and such to get me to pay it. I'm sorry, I know I should take care of it but life carries on and yet I only make so much money to survive (not thrive). Yet they can be bailed out and serve a slap on the wrist but I have to resort to cutting back on my lifestyle to get them their thousand dollars, so one of their executives can fill their Hummer, Boat, ATV, Motorcycle, and Ego for the week.

P.S. Sorry for the rant....A case of the Monday's (Office Space Reference for those who didn't catch that)

reply to post by AnonymousCitizen


This will be the start of the end The derivative market is interconnected, and a true domino game. When the tallest bet is going down - so many others will follow the lead. The total value of the derivatives market place is a factor larger than the whole global BNP... Which means its way beyond FED, and end of the money and currencies as we know it.

This is the push for global currency a la Rotschild (remember his interview, and "global currency preferably within 5 years"?). JPM going sideways with its 70 trillion exposure (more than world economy), will wipe out dollar and euro and yuan, and yen, and .... This is it.

Eh, I think these big banks are just waiting for the inevitable... QE3

QE3 not ripe yet, but you better believe this fruit will ripen

Hints of QE3

"Supply (in the money markets) is down considerably from the

peak in 2008 so sterilized QE3 that would bring more supply into

the money markets would be very helpful," Sylvester said.

... we all know big banks would love another bailout.

Burn JP Burn!

It's difficult to follow the bread crumbs, but not so hard to follow.
Divert "bail-out" money to executives. Bury that money as losses in "speculative" investments.

Now I don't play the market anymore but if things go as I think they might go, it will be a good idea to (first currently bet against JP Morgan, obviously) buy up JP Morgan stock after they stop the bleeding, because I think there will be another round of bailouts. Stocks will then hit the green again. (There is money to make in a decline)
Do you guys think JP Morgan will be the only big bank to lose their asses on derivatives? They are just the first to expose their losses... especially (if you believe) since JP Morgan is the "best managed bank". Because as stated in this article... with their stock losses, they are set to lose $30 BILLION.

JP Morgan set to lose $30,000,000,000

I guess my question is......Should I or shouldn't I pay off my couple thousand dollars worth of credit card debt to them???