*Breaking
JPMorgan has just reported a $2 billion loss on synthetic credit securities (can you say Greek credit default swaps?).
JPM is plunging in after-hours trading, down nearly 6%.
But Jamie, I thought you promised a Greek default would be contained and a ‘non-issue’?
Makes one wonder how much JPM will lose on the next Greek default, which is looking increasingly imminent as the ECB is withholding the next bailout tranche to Greece.
JPMorgan Chase & Co. (JPM) (JPM) Chief Executive Officer Jamie Dimon said the firm lost about $2 billion on synthetic credit securities after an “egregious’” failure in its chief investment office, which the bank says focuses on hedging.
“This portfolio has proven to be riskier, more volatile and less effective as an economic hedge than the firm previously believed,” the New York-based company said today in a quarterly securities filing. JPMorgan declined 5.5 percent to $38.50 in extended trading at 5:55 p.m. in New York.
The chief investment office has been transformed in recent years under Dimon into a unit that makes bigger and riskier speculative bets with the bank’s money, according to five former employees, Bloomberg News reported April 13. Some bets were so big that JPMorgan probably couldn’t unwind them without losing money or roiling financial markets, the former executives said.
Read more:
And a market snapshot of JP Morgan in after hours trading:
JPMorgan Chase & Co. (JPM)
-NYSE
0.10(0.25%) 4:02PM EDT|
2.68 (6.58%)
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/images/live/s_silv.gif)
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/images/live/s_gold.gif)
Stock Futures
DJ MINI($5) JUN2(
YMCV1
:Chicago Board of Trade)
cnbc link
12761.00 USD
-73.00 (-0.57%)
Last Trade
2,870
Volume
6:51:32 PM EDT
Americas
Index Future
Future Date
Last
Net Change
Open
High
Low
Time
DJIA INDEX
Jun12
12,756.00
-78.00
N.A.
12,801.00
12,729.00
18:20:19
JPM QUOTE
40.74
(0.25%)
After Hours: 37.97
-2.77
(-6.80%)
May 10, 5:32PM EDT
NYSE
real-time data
…and for Mr. Dimon:
Am I wrong or do I recall something correctly. Didn’t Bix Weir say something about the take down of the Banking Cabal this year? I need to find that article. I think he mentioned Greece would be the start (even though the MSM said Greece wasn’t big enough to do damage). Starts with Greece moves to Spain, Italy, etc. and all the while starting a cascade of banks failures do to the DCS’s. The next month should show some serious fireworks.
Over at Harvey Organ, he and ZH weave together a really ugle scenario for Spain but Greece could very likely default by next week. Total debt in Greece is about $500 billion. 3 times GDP Wondering how much JPM has in this mess. bleep loads.
There’s a whole lot more going on out there than we are currently seeing. Watch for others to report similar loses in the coming days .. is panic about to set in?
This Might Be The Trigger Reachwest “A Whole Lot Can Happen”: JPM Just Might Be As Good As Dogshit In Someone’s Stock Portfolio Now.
Let’s check in with Clint to find out what can happen to dogshit:
Doc Whats up with this time out crap??
Harvey’s Firing Back At The Trolls Tonight!–Go Get ‘Em Harvey!—LOL!
“I see the trolls are active tonight on Harveys board, guess their mom
got the Internet working again ! I hope the lighting is good in their
Mom’s basement!!
“To anonymous at 5:25: “…you complete moron: “… you have an IQ of an amoeba” READ MORE
Bix Weir is a genius…
why do i think this is only going to be the tip of the iceberg…. surprised they didn’t wait until tomorrow afternoon to announce, to give them a weekend and closed markets like they did for Lehman.
Crash The Morgue! Buy more phyzzzz from the DOC!
Great call by Bix. Spot on. Jim Sinclair has been a mastermind as well about the OTC derivative market. I expect the ISDA needs to come out in a hurry to change the rules of a default. The ISDA already subordinated the bonds with the ECB and the private sector. I expect them to never allow any payout of the CDS in the future. The CDS market is a shame and a joke. As Zerohedge always points out, NET=GROSS! To say that JP Morgan is hedged and not exposed in the European bonds with their CDS is a fucking joke. This so-called 2 billion dollar hole is just the beginning. If you are hedged with CDS but they never pay-out, then what is the value of the CDS? How can you be hedged if the value of a CDS is zero? These positions will get hammered when the bonds fail and the CDS is worthless. It’s goodnight for the central banks and commercial banks. I just don’t understand why the private sector would get involved in the bond market in Europe. You will be instantly be subordinated with your bonds and the ISDA will never allow the CDS to be paid out. It’s all about to crash. The OTC market is the biggest joke of a market. I hope JP burns in hell!
Couldn’t happen to a nicer bank. Is that why your holding down the spot JP so that you can refurbish your losses with buying cheap gold and silver and sell it high? LMAO
427- the issue just popped up last night, i sent a request to the tech guys to investigate and resolve…hopefully time out issues will be resolved quickly.
-Doc
Greed is good….until it’s bad. LOL. I hope this is the waterfall decline to hell for them.
“Synthetic credit products are derivatives that generate
gains and losses tied to credit performance without the owner
buying or selling actual debt.”
Sounds like some kind of financial instrument that you’d only find on the Holodeck of Banker’s Starship.
I wonder if they’ll lose power to the Holodeck? Or will it be to the whole ship?!
Im able to post now Doc.
Well lookie here… Dimon getting caught with his pants down during church…. See kids, if you give someone a long enough rope they WILL hang themselves…. I have no doubt there is plenty more to follow!! NO ONE CAN LAST FOREVER!!! History has PROVEN THIS!! I wonder who’s desk Blythe is “hiding” under while all this is coming out?? OR is Blythe and Dimon the SAME person???? Hmmmmmm…….. LMFAO
This is HUGE kids!! It’s our chance to break out…. This is the beginning of the end… It’s what we’ve been waiting for… LET’S TAKE FULL ADVANTAGE OF THIS SITUATION!!!
Shouldn’t be long before the media reports on a supposed “rogue trader” who we’ve never heard of, or will hear of again. They always pin this crap on some guy just above the mail room that happens to be able to trade billions a second with no oversight.
Never Weaken- they already have. Bruno Iksil.
It would be ironic if JPM suddenly self destructs, while all that silver was doing was coming closer and closer to the nerve center.
Slowly but surely, the medicine is taking effect.