Skip to comments.JPMorgan's trading debacle: why $2 billion is just the start
Posted on 05/13/2012 12:37:55 AM PDT by TigerLikesRooster
JPMorgan's trading debacle: why $2 billion is just the start
By Stephen Gandel, senior editor
May 11, 2012: 2:02 PM ET
The bank's bad bet could curtail profits for years to come.
FORTUNE -- For years, JPMorgan Chase (JPM), perhaps the riskiest bank in the world, got a pass. Sure there were minor hiccups along the way. But basically investors had the attitude with the bank run by Jamie Dimon that they were going to be hands off. Sub-prime mortgage loans: You've proved you can handle them. Foreclosure problems: We're sure you've got your best people on it. A derivative portfolio roughly the size of the GDP of India: We trust that you have covered your bets.
In fact, despite its huge size and complexity and risk, investors have allowed Dimon and JPMorgan to skate by on one of the smallest capital cushions, which is how much equity you have to protect against losses, on Wall Street. When you sort JPMorgan's loans and investments by riskiness, a dubious calculation, but used by Wall Street nonetheless, the bank holds an equivalent of just 10% of that as capital. That compares to 13% at Citigroup (C) and 15% at Goldman Sachs (GS).
(Excerpt) Read more at finance.fortune.cnn.com ...
Are you really need to do is make sure the county shows the reconvy went through so there is no LIEN on your property.
Your comments could easily be straight out go the 1870s, ESP. Regarding the “banks” and “business”. When you decid to change, it’s amazing how fast you do so.
“When you decid to change, its amazing how fast you do so.”
I give up. What change?
That’s the thing-—in American, and world, history you rarely see it coming. In 1855’ NO ONE, including Lincoln, would have predicted that 10 years later all slaves would be free. In 1774, NO ONE, including Adams, Jefferson, or Washington, would have thought that just 7 years later (really) America would be an independent nation.
When you said “you” I read it as you were implying that I personally was quick to change my beliefs when now, I realize that you were using the word “you” as the nation.
That’s why I responded to your post.
Yes, nation. Nations/national history/international history turns literally on a dime. What everyone “thinks” will be obvious almost never is. No one thought the Huns could be stopped, especially by a half-German army. But they were. No one (except, maybe, George Gilder) predicted the impact of the cell phone. NO ONE in Hollywood saw the collapse of the markets for film, or in publishing, the collapse of the big publishing markets.Someone else will just as suddenly shift the whole country, and probably the world, into the “next” thing-—and it won’t be someone like China. It will be us.
Just print some more digits, enter them in the credit ledger and hand them over. What's the problem? Election year. What's the problem?
Thanks for the ping.