Posted on 06/15/2012 4:14:29 AM PDT by SeekAndFind
That wasn't a "blunder". It was a cooly calculated very high risk gamble that lost.
Paid off the Chase mortgage in March. Have the title in hand. Closed out all accounts in JPMorganChase.
The BofA purchased our credit card balance three months ago. Now we’re working on paying that off.
While JPM lost 2 bil of it’s own money in bad trades, it also made 19 bil in other investments. If they go BK it would probably be as part of a much larger financial collapse.
RE: While JPM lost 2 bil of it’s own money in bad trades
Some have said that because this is a derivative trade, the total extent of the lose is still to be determined. It could be as high as 4 times that. We have to see...
These aren't 'banks'. They're casinos.
Well despite all the terror in the article these TBTF 'banks' must be allowed to fail. At this point a credit crash or hyperinflation or both are inevitable.
To deal with a credit crash, buy money which has no counterparty risk. Gold and Silver.
To deal with hyperinflation, buy money which acts as a store of value. That's Gold and Silver again.
RE: While JPM lost 2 bil of it’s own money in bad trades
Some have said that because this is a derivative trade, the total extent of the loss is still to be determined. It could be as high as 4 times that. We have to see...
ok, the problem is the businesses all drank the credit koolaid. No one runs on cash.
If JP Morgan fails, maybe the big corps will have to run on cash. That will force them to trim down instead of being so colossal.
Smaller corps will be more nimble, less crooked. We all win
I'll go one further: it was also intended as a test of the current system.
It's important to remember that Taxpayers are on the hook for any bank losses that jeopardize the bank's ability to "do business." That includes banks like JP Morgan Chase that are both retail banks (read that: checking, savings, cd's..) and Investment Banks just like JP Morgan Chase.
If those losses put the bank at any risk you and I would be bailing them out again. That's just the way Jamie Dimon wants it. Notice nowhwere in his testimony did he advocate changing the system, such as re-instating Glass-Stegall, to protect us poor taxpayers.
Rather, Dimon likes the system as it is so Banks can take all the risk they want without any fear of repercussion. In fact, they take all the risk and we are the ones stuck re-fueling their capital (read that: Bailouts, Taxpayer dollars!)
Even Larry Kudlow on CNBC said the other night that he believes he was now wrong for opposing re-instating Glass-Stegal because of situations just like JP Morgan Chase and their recent 2 billion dollar "loss."
I'm a strict financial Conservative, both in my own finances and my views towards government spending our tax dollars. I do not believe we should be responsible to bail out banks that act irresponsibly as JP Morgan Chase has done. In fact, I don't believe we're responsible to bail out banks that lose money at all!
Glass-Stegall should be re-instated to protect us, the poor taxpayers who've seen our dollars diminish in value due to all the quantitative-easing, money pumping and bank bailouts from ever happening again, period.
Let failed banks (and other companies..) suffer the consequences of their own financial decisions, and separate Retail banking from Investment banking NOW.
FDIC insurance is there to protect Retail Banks and consumer banking clients from losing money. It should NOT be there for Investment Banks where risk taking is prevalent and expected to generate high returns. Those who take the risks (and ONLY those who take the risks!) should be the ones who suffer the consequences of bad decisions.
Sorry for the rambling post, this entire topic gets me completely worked up, and I work in the Banking Industry. The damage that JP Morgan Chase, BoA, Citi, etc.. are doing is having an adverse, overly negative impact on the rest of us who generally are trying to do the right thing.
No need to apologize - it needs to be said. When you privatize gain and socialize loss in the banking industry there in no incentive for the bankers NOT to make the most dangereous high risk/high reward trades possible because they can't lose. And we can't win.
My biggest problem is with the taxpayer bailouts, but there are some who say Glass-Stegall actually prevented the 2008 crisis from being far worse than it was by allowing larger banks to absorb the bad debts of the smaller ones, and that the bigger issue regarding the cause of the crisis goes back to things like the community reinvestment act. Just saying.
Bill Clinton himself as President wanted Glass-Stegall repealed according to a Feb. 27th, 1995 Time Magazine article.
Ask the same fools who say Glass-Stegal "helped" stop the damage from the 2007 collapse from being worse than it was repealed 8 years prior to the 2007 financial collapse.
Suggest you don't hold your breath waiting for a response.
The sky is falling?
Ask the same fools who say Glass-Stegal "helped" stop the damage from the 2007 collapse from being worse than it was, when the law was repealed 8 years prior to the 2007 financial collapse.
I need to walk away from the computer and head to work. Thanks for getting my blood pressure through the roof already with this thread. It's gonna be a long day now.
Exactly. The level of freak out surrounding this loss is utterly ridiculous. If JPM goes down the the whole world is totally screwed anyway. They are the most solid of all the banks.
How would Glass-Steagall have protected banks from the massive mortgage losses they suffered?
FDIC insurance is there to protect Retail Banks and consumer banking clients from losing money. It should NOT be there for Investment Banks where risk taking is prevalent and expected to generate high returns.
It is also there to protect bank clients who had money in banks that ended up with risky plain vanilla mortgages.
Agree about reinstating Glass-Stegall. That needs to be done.
Who did that?
because they can't lose.
Banks had hundreds of billions in losses and you don't think they can lose? Is that your claim?
Didn't the fourth largest bank in Italy fail last November...an event that was not well reported ....?
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