Posted on 05/10/2012 8:58:15 PM PDT by Olog-hai
JPMorgan Chase, the largest bank in the United States, said Thursday that it lost $2 billion in the past six weeks in a trading portfolio designed to hedge against risks the company takes with its own money.
The company’s stock plunged almost 7% in after-hours trading after the loss was announced. Other bank stocks, including Citigroup and Bank of America, suffered heavy losses as well.
“The portfolio has proved to be riskier, more volatile and less effective as an economic hedge than we thought,” CEO Jamie Dimon told reporters. “There were many errors, sloppiness and bad judgment.”
The trading loss is an embarrassment for a bank that came through the 2008 financial crisis in much better health than its peers. It kept clear of risky investments that hurt many other banks.
The loss came in a portfolio of the complex financial instruments known as derivatives, and in a division of JPMorgan designed to help control its exposure to risk in the financial markets and invest excess money in its corporate treasury. …
(Excerpt) Read more at nydailynews.com ...
"Even when the market in America has ceased for the day, it's still going on in other parts of the world."
At the end of the day mutual funds have to settle out, also, buying and selling.
Then the DOW never opens at the same price it closes, yet it only reflects American prices? In fact the opening price reflects the first transactions of each component after the market opens. If it takes a minute or two for each of the 30 DOW Industrials to transact, there is no price for a minute or two.
Now, that opening transaction will surely reflect overnight trading prices.
yitbos
if government is willing to loan you a billion dollars at 0% interest rate, would you take it? I take as many billions as they’re willing to give me, because however the loan turn out I end up the winner
Just be careful though. After about the tenth loan they MIGHT get wise that you are using much of that loan to pay off the earlier loans.
not all. just the big banks
two billion to JPM is two bucks to you and i.
PARIS (Reuters) - Stock index futures were down on Friday, pointing to a lower open on Wall Street, after JPMorgan Chase & Co stunned investors with news of “significant mark-to-market losses” that it said could “easily get worse.”
My understanding is that they lost 2 billion in just 6 weeks.
Who is minding the store there?
Is obama about to “find” a whole new pile of cash in their reelection fund?
Don’t forget, all the bucks from MF Global still havent been found and no one has been held accountable.
Actually, they’ve been doing pretty much whatever they want all along; it’s just never been this obvious before.
They’ve been able to do what they want since the repeal of Glass-Steagall. The fact that they’re powerful enough (read: they can buy enough politicians) to prevent the re-instatement of that law and the creation of further regulations to keep up with the financial unicorns, I’m sorry, products, they invent out of thin air is what’s appalling, but not suprising. Since the “financial crisis”, the big banks are bigger than before, and the derivatives market is as well. They’ll tank again, and we’ll bail them out again. That cycle will repeat until they go down so hard we can’t bail them out, and then we’ll be in another Great Depression, scratching our asses wondering how anybody could let that happen. But hey, at least we’ll be “pro-business” until then, free of pesky banking regulations that are anathema to our way of life.
3.37(8.27%) 10:43AM EDT - Nasdaq Real Time Price
http://finance.yahoo.com/echarts?s=JPM+Interactive#symbol=JPM;range=5d
Jon Corzine just stole billions of dollars. That’s not capitalism. There is supposedly a group protesting Wall Street, and they have never once mentioned him.
No, it’s not capitalism and neither was Madoff. One need look no further than the Chicago Carbon Exchange to see how ridiculous the market has become; the sanctioned trading of carbon credits......fairy dust. Thank goodness that was nixed. Apparently, we haven’t learned anything from credit default swaps.
“Mistakes were made.”
The beauty of the con is that that we only acknowledge the “other side’s” transgressions. So everybody gets away with it.
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