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JP Morgan Chase loses $2 billion

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JP Morgan Chase loses $2 billion

Postby Shorty » Sat May 12, 2012 8:15 am

More problems from a big bank.

http://finance.yahoo.com/news/calls-tou ... nance.html

"WASHINGTON (AP) — JPMorgan Chase faced intense criticism Friday for claiming that a surprise $2 billion loss by one of its trading groups was the result of a sloppy but well-intentioned strategy to manage financial risk. More than three years after the financial industry almost collapsed, the colossal misfire was cited as proof that big banks still do not understand the threats posed by their own speculation. "It just shows they can't manage risk — and if JPMorgan can't, no one can," said Simon Johnson, the former chief economist for the International Monetary Fund."
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Re: JP Morgan Chase loses $2 billion

Postby Bwis53 » Sat May 12, 2012 11:22 am

Ah, just another bank that's done me wrong. I was a great prospect but they turned down my credit ap. and still couldn't stop themselves from sending me mass mailers begging for my business.
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Re: JP Morgan Chase loses $2 billion

Postby Kenneth Burns » Sat May 12, 2012 12:59 pm

This another one of those finance stories that I read and re-read and still don't quite get. Other than the headline. That I get.
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Re: JP Morgan Chase loses $2 billion

Postby snoqueen » Sat May 12, 2012 8:42 pm

Don't feel bad if you can't figure it out. Paul Krugman at NYTimes says he hasn't figured it all out yet either.
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Re: JP Morgan Chase loses $2 billion

Postby rabble » Sat May 12, 2012 11:11 pm

I haven't read up on the details, but I've got one question. They lost two billion. That has to mean somebody else or a bunch of somebody elses made two billion. Who are those somebodies?

The money's not lost, it changed hands. Where'd it go?
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Re: JP Morgan Chase loses $2 billion

Postby Galoot » Sun May 13, 2012 8:23 am

Good question, rabble. I'm not so sure it's a zero-sum sort of investment, though. As I'm sure you know, there are lots of investments that aren't zero sum, such as housing. Nobody else got the money that we lost in the housing market crash, it just disappeared.

From the little I know of derivatives, they do seem to be zero sum, though. JPMC made a bad bet on the overall economy, so I guess whoever they sold their derivatives to are the ones that made out.
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Re: JP Morgan Chase loses $2 billion

Postby DCB » Sun May 13, 2012 11:28 am

The JPMorgan Chase (JPM) CEO just got a $17 million stock bonus for 2010. That is the richest reward for a Wall Street chief so far this bonus season and pushes Dimon's pay back toward the levels that prevailed before the financial meltdown of 2008.

finance.fortune.cnn.com/2011/02/18/jamie-dimon-bonus-king/
February 18, 2011
Mr Dimon received $17.3m in restricted shares and options for 2011 – details of which were contained in regulatory filings in New York – and is believed to have been awarded a bonus of $4.2m
.
http://www.telegraph.co.uk/finance/news ... d-23m.html

I'm glad they rewarded him so well. If they didn't have a brilliant guy like Dimon it might have been much worse.
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Re: JP Morgan Chase loses $2 billion

Postby Ned Flanders » Sun May 13, 2012 2:04 pm

Anyone check Corzine's offshore accounts?
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Re: JP Morgan Chase loses $2 billion

Postby DCB » Sun May 13, 2012 2:12 pm

Ned Flanders wrote:Anyone check Corzine's offshore accounts?

If you're trying to make the argument that both Dems and Repubs do it, I'm right with you. Which is why its so hard to get responsible financial regulation through Congress.
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Re: JP Morgan Chase loses $2 billion

Postby Petro » Sun May 13, 2012 6:39 pm

They've been talking about this on zero hedge for over a month now.

Of course, Iksil still has a job while his boss has been offering her resignation for almost a month. Looks like she might finally get it. (She only made $14M last year, for those playing along at home.)
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Re: JP Morgan Chase loses $2 billion

Postby snoqueen » Sun May 13, 2012 8:36 pm

A recent study found that 10 percent of people who work on Wall Street are “clinical psychopaths,” exhibiting a lack of interest in and empathy for others and an “unparalleled capacity for lying, fabrication, and manipulation.”


There are ethical corporations, yes, and ethical businesspeople, but ethics in capitalism is purely optional, purely extrinsic. To expect morality in the market is to commit a category error.


Read the rest of it here:
http://www.nytimes.com/2012/05/13/opini ... th.html?hp

It's becoming apparent the clinical psychopaths aren't limited to Wall Street.

Paywall alert, as always.
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Re: JP Morgan Chase loses $2 billion

Postby bdog » Sun May 13, 2012 8:49 pm

snoqueen wrote:
A recent study found that 10 percent of people who work on Wall Street are “clinical psychopaths,” exhibiting a lack of interest in and empathy for others and an “unparalleled capacity for lying, fabrication, and manipulation.”


There are ethical corporations, yes, and ethical businesspeople, but ethics in capitalism is purely optional, purely extrinsic. To expect morality in the market is to commit a category error.


Read the rest of it here:
http://www.nytimes.com/2012/05/13/opini ... th.html?hp

It's becoming apparent the clinical psychopaths aren't limited to Wall Street.

Paywall alert, as always.

That actually sounds like "sociopaths" which is pretty obvious a lot of politicians are.
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Re: JP Morgan Chase loses $2 billion

Postby Henry Vilas » Mon May 14, 2012 9:21 am

bdog wrote:That actually sounds like "sociopaths" which is pretty obvious a lot of politicians are.

Says the guy who supports Scott Walker.
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Re: JP Morgan Chase loses $2 billion

Postby Detritus » Mon May 14, 2012 9:36 am

snoqueen wrote:
A recent study found that 10 percent of people who work on Wall Street are “clinical psychopaths,” exhibiting a lack of interest in and empathy for others and an “unparalleled capacity for lying, fabrication, and manipulation.”

Actually, no, that's not at all what the study found. The NYTimes is simply playing its part in the game of telephone that constitutes most science journalism in this country purple monkey dishwasher.
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Re: JP Morgan Chase loses $2 billion

Postby snoqueen » Mon May 14, 2012 9:47 am

That's important, and I'm glad you posted it so I and others could read it. The idea journalism dumbs things down is hardly new, but calling it out when it happens is essential.

The Republicans in Congress? Scott Walker? I'm still not sure....
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