Buried in its mandated report on JP Morgan’s contingency plan in the event of collapse, JP Morgan has admitted it’s assets are overvalued by $150 billion, essentially leaving their equity position at (-$16 billion)!
The Morgue’s recent $7 billion CIO losses weigh slightly larger against a real equity of -$16 billion!
Reuters published an exclusive story this morning:
U.S. banks told to make secret plans for preventing collapse
Buried in the final paragraph:
In a presentation in March, JPMorgan Chase said it had a recovery plan in place and said it was ordered by regulators. The presentation was organized by Harvard Law School and was closed to the media at the time, but is now available online.
Here’s the BEST part of the JPM document.
It’s easy to see on the PDF:
http://www.law.harvard.edu/programs/about/pifs/symposia/europe/baer.pdf
Go to page 9. Under the wipeout scenario JPM describes a $50 billion trading loss turning into a $200 billion loss as soon as the FDIC takes over. Why… ? Because JPM says they would expect the FDIC to immediately writedown JPM’s assets by an additional $150 billion.
Holy mark to bulls***. Jamie Dimon just admitted to the world that JPM is mis-marking assets to the tune of $150 billion.
It gets better. Go to page 10. The chart shows that they only have $184 billion in equity, minus the $50 billion loss, minus ‘the $150 billion fdic reality adjustment’, which leaves them in a negative equity position of (-$16 billion).
So, we can extrapolate that without this phantom loss of $50 billion, JPM’s real equity position is just $34 billion currently, not the $184 billion on their books.
Read more:
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Only an unrestrained Free Market, wherein BOTH goods-at-market AND money are ‘priced’ by their relative supply-demand characteristics, can render accurately reflective ‘books’. Absent that condition, it’s nothing but ‘mark-to-make-believe’ bull crap!
Bankers like Dimon have a different mindset. They are above the law. They are “doing God’s work” to quote Lloyd Blankfein former CEO of Golman Sachs They report only to their central banker pals and the BIZ. In their mind fabricating a financial statement is allowed, if it makes your bank appear stronger. And a strong banking system is in everyone’s best interest. That’s what LIBOR is all about, too.
But..but, hey, their stock is at $37, up 10% the last few weeks. This can’t be true. Can it?
Market is counter-intuitive because of the manipulation. Example-China just reported some bad numbers and their stock market went up. Go figure. Investors are thinking bad numbers mean more central bank stimulus injection I guess and that’s good for equities.
i just lol’d
Let’s see
JPM has a negative net worth.
There is no rule of law left against bankers taking your money
I smell a bank raid coming.
Dimon the Tapeworm will be looking for you(r) money very soon.
Orwellian. Don’t you guys know that thinking that the Morgue is insolvent is a thought crime?
If I had a mind, I’d have a thought. If I had a thought it would be a crime.
No worries there. I’d rather have a bottle in front of me than a frontal lobotomy.
Awww MAN … BRING BACK THE ‘COINS’, DOC! I’m ‘jonesing’ here!
@patfields – The coins required an unbelievable amount of JavaScript coding and database calls which added to slow content loading in the prior site. The primary focus of the new site launch was quick content loading and an increased social experience by combining both Twitter and Facebook-like functions (hence activity streams in user’s profiles and @mentions which notifies users they’ve been talked about in a comment reply or forum post).
@bullrun has, I believe, came up with a different solution for rewarding loyalty through being able to redeem points earned for SD merchandise and even physical metal. Bullrun speaks more about it here and has created the SD Store where you can see how many points are required for each item.
Here is my two cents for the night on this whole JPM silver suppression thing:
1. Ned Naylor-Leland has said that the new physical silver exchange which will change things will come into force in mid-summer. It is August 12th. It should be very very close.
2. Jim Willie said that one morning, people would wake up to a suddenly and shockingly higher gold/silver price.
3. Bart Chilton seems to be the beating boy of the silver community, yet something tells me there’s an inverse good cop bad cop thing going on here. Something tells me he’s in tune with some in the PM community, and that perhaps the silve rmanipulation findings will be times with the new Physical silver exchange.
4. Efraim Halevy, former director of the Mossad, said that if he were a Persian, that he would be very fearful in the next 12 weeks. While coming out against a strike against Iran (along with other Oslo-accord-era left-wing Israelis recently who naively believed in peace with the Arabs, when the Arabs meant that they wanted pieces of dead Jews), he is also obviously in the know, and if he’s warning Iranians to be afraid, to be very afraid of the next 12 weeks, something BIG is coming. Perhaps Netanyahu will pull off what Menachem Begin pulled off against Iraq in 1981, despite the fact that the Mossad and military were opposed to Begin’s plans. Begin prevented a nuclear Iraq (to which I’m sure he’d say “you’re welcome” to General Schwarzkopf), the world criticized the Zionists, but an atomic Holocaust of Israel was averted. Netanyahu realizes that the Messianic Shiite Mullahs are less rational than Baathist Saddam Hussein, and much more lethal.
So, put 1+1+1+1 together, and AU/AG should be going up soon.
Ramadan ends Aug 18. Look for things to heat up then. Right now energy levels are low because of the fasting.
About 6 months ago I predicted a silver shortage and prices going up. I won’t stick to that prediction exactly since the Iranian war did not start in June as I thought and that changed the dynamics of the shortages by a few months.
So much for my predictions! But the international financial situation, war in the middle east coming soon and the impending shortages in PMs noted on these pages, it is still a good chance that we will see some action this month and into Sept-Oct time period.
With regards to June,
I was expecting it in 2004, and I was itching back then, saying, it’ll come any time now, they wouldn’t be crazy enough to wait until the last second.
Well, today, Israeli intelligence reports say Iran will be able to build a nuke by Oct. 1. That gives us 6 weeks.
And in case you might be confused on this issue because of Jim Willie’s and Max Keiser’s comments about Iran’s nukes, consider this:
the Chinese are now very skeptical and unimpressed with the Iranians, because they successfully tested Thallium as an alternative in Nuke Plant fuel rods, and the Chinese results were that it is even more efficient than Uranium for civilian energy purposes.
The beauty is that Thallium can not be weaponized as can Uranium, and so the Chinese apparently called the Iranians bluff at diplomatic levels, and the Iranians rebuffed the Chinese offers, insisting that only Uranium could be used in a peaceful Iranian civilian energy program.
This has been known for years though, the Chinese just wanted to prove it with real results.
So the question becomes, why didn’t the Russians a long time ago offer Iran Thallium only? Why did the Russians send over Uranium?
Anyway, I say 6 weeks from now, Israel will have taught the Taquiah-practising Mullahs a lesson.
Here’s the deal. I want to save my SD points for a t shirt. Gadsden flag on the back. On the front is the new Silver Doctors logo with the words ‘Crash JPM, buy silver’ Or ‘Silver is the bullet that slays Wall Street!’
LOL @AGXIIK – Check with @bullrun – he might be able to work that out for you…
Let me know when you have a shirt like that. I can be a billboard for silver. Love to talk about silver. Now I can walk the talk.