JPMorgan Chase Trading Loss Surpasses Bank's Initial $2 Billion Estimate By At Least $1 Billion

Dealbook:

The trading losses suffered by JPMorgan Chase have surged in recent days, surpassing the bank’s initial $2 billion estimate by at least $1 billion, according to people with knowledge of the losses.

Read the whole story at Dealbook

Comments

[olerealist]

01:02 PM on 05/23/2012

ARE REPUBLICAN MEMBERS OF THE SENATE BANKING COMMITTEE PIG HEADED AND IGNORANT OR are they cleverly attempting to undermine and discredit the Dodd-Frank law.

Republican Senators Richard Shelby, Bob Corker, among others ranted that (A) the federal regulators should have known about the J P Morgan-Chase recent 3 billion (and counting) loss and should have been known about the fiasco BEFORE members of the press, and
(B) that they should have been able to prevent the transaction from ever getting off the ground.

However, the facts are that subsequent to the passage of Dodd-Frank, the Congressional Republicans, encouraged by huge campaign contributions, have spared nothing in their frantic efforts to sabotage the implementation of the Act. They have cut and refused to increase the budgets of the SEC and the CFTC to the extent of even making it difficult to pay the rent. All notwithstanding the huge increase in the responsibilities created by the Act. Republicans have refused to approve appropriations to finance the hiring of new expert personnel. Consequently, the regulators, to date, have not had the opportunity or wherewithal to implement the Act, especially the Volker Rule portion.

In Tuesday’s Senate hearing the Republican members were stupendous in their hypocrisy.

[Allison Everret]

09:38 AM on 05/18/2012

"So JPMorgan makes a $2 billion mistake -- less than 7 percent of their 2011 earnings -- with their own money, and senators are calling for hearings. The California's governor's office raised its 2012 budget deficit projections -- namely their overspending of public money -- almost 50 percent, from $9.2 billion to $16 billion, an error of almost eight percent of the state's total budget, in four months, yet those same members of Congress remain as silent as a Trappist monk."

[pyrroho]

08:32 PM on 05/17/2012

This whole thing is like Monty python witch scene except instead of a witch and a duck the markets are using the theory of inherently multiplying money. "money is made from?..."
"small stones..."
"noooo..."
"wood?"
"yes and wood comes from?..."
"trees?"
"exactly! And what do trees do?"
"stand"
"noooo...."
"get bigger?"
"exactly. And therefore?"
"money gets bigger."
"exactly...

[pyrroho]

08:04 PM on 05/17/2012

Faint clue to those who are still living in the 19th century(read as all those of you extolling our system in it's current state), chase is making its profit off imaginary money or as it is more commonly known asset leveraging. Take any financial instrument bundle it and derive another product from it and so on and so on. Making money this is way just means the bill comes due at some point especially when the avg leverage in the market is around 30 times. That means the actual goods and assets dimon and citi make their money from is only 3% of what they are collecting on. Put glass steigal in place. Wheeha. If leveraging keeps increasing so will volatility.

[JackR13]

05:57 PM on 05/17/2012

What's the beef? B. Hussein and his regime tripled the national debt in just 3 years, and wants to continue along the same road. By the way, when you purchase investment vehicles, you're always informed that there are risks involved - including the loss of ALL of your money - and you should exercise caution before signing anything. Caveat emptor, eh?

[pyrroho]

08:16 PM on 05/17/2012

Nation debt is 15 trill. Was at 10trill when he took office. The would be an increase of 50% not 300%. If he tripled it... That would be 30 trill Apparently the whole math thing seems to be confusing you. Oh and by the way derivative trading desks are not regulated. Damn those pesky facts.

[JackR13]

02:25 PM on 05/18/2012

You're absolutely right! I meant tripled he budget deficits over the last three years.

[LittleOldLadyWho]

05:39 PM on 05/17/2012

"Still, the huge trading losses rocked Wall Street and reignited the debate over how tightly giant financial institutions should be regulated. Bank analysts say that while the bank’s stability is not threatened, if the losses continue to mount, the outlook for the bank’s dividend will grow uncertain."

Is there a question??  Banks should tightly regulated--PERIOD!!

[JackR13]

06:02 PM on 05/17/2012

Banks ARE tightly regulated -- PERIOD! They are probably the most regulated industry in the country -- PERIOD!! But when the regulators are playing on-line games or watching porn on the taxpayers dime........ And when con artists and crooks like Barney Fwank and Chris Dodd are writing the regulations, well, you get what you pay for. And those two, along with B. Hussein Obama, were the top three recipients of "campaign donations" from the banking industry. What could possibly go wrong, eh?

[LittleOldLadyWho]

06:28 PM on 05/17/2012

Goodness!  Well, it's your story, Sweetie.

Tell it anyway you like!!

[pyrroho]

08:11 PM on 05/17/2012

So putting the wolf in charge of the henhouse is a better idea? If you think obama's bad just wait until 5 or 6 years after Romney Just as dumb and blind to history as Clinton.

[ckinsobe]

04:37 PM on 05/17/2012

Well, this should put and end to Jamie's pathetic whining the past months about how he's misunderstood and unloved: Jamie everybody knows what a toxic lot you bankers are, the contempt was entirely deserved.

[Aripottah]

04:18 PM on 05/17/2012

Well, isn't this ducky. Jamie fiddled, while JPM burned. Bet the shareholders just love that, Jamie. Nice work!

[iam99]

04:05 PM on 05/17/2012

"Nobody Knows How Big the Losses Will Be" says it all.
Also, no one will ever convince me that the ivy greeds are the smartest in the room.

Now bring back Glass-Steagall Act!

[Sock De Jour]

04:00 PM on 05/17/2012

The banks own Congress, they own the executive branch (no matter who is in it), they control the Fed, the Treasury, and they manipulate the markets on a daily basis, skimming from ordinary investors, institutional investors, and then the public, when they create risky debt and need bailing out.

[uniquindividual]

03:51 PM on 05/17/2012

Bring back Glass Steagall.

No trading with depositors money. The notion that it is legal is reprehensible.

[Itzamirakul]

04:36 PM on 05/17/2012

F&F

[outraged in Alabama]

03:15 PM on 05/17/2012

And Romney and the GOP say we need to deregulate. How many people will suffer in pension losses. I know with this and what is happening in Europe have effected my 401ks. These folks need regulated because they can not regulate themselves when their one principle is GREED. Its like letting the FOX loose in the hen house.

[whoknew---]

03:15 PM on 05/17/2012

Thank a Republican for this mess---

REAGAN is the PATRON SAINT of UNION BUSTING, TRICKLE DOWN ECONOMICS, and DEREGULATION.

The UNHOLY TRINITY of "HELLO! WELCOME TO THIRD WORLD STATUS."

[Itzamirakul]

04:38 PM on 05/17/2012

I remember when Reagan began this deregulation bs, stating that he "wanted to make more millionaires." Well, not only has he succeeded, but he has also made more thieves.

I hope that he is rolling non-stop in his grave!

[hamsteronwheel]

03:07 PM on 05/17/2012

we're all hamsters on neocon "financially engineered" and "financially innovated" wheels

this is what we get for OUR CONGRESS GIVING banksters HUNDREDS OF BILLIONS IN BAILOUT TAX DOLLARS!

Nationalize this ZOMBIE bank Hiding HUNDREDS OF BILLIONS IN TOXIC ASSETS off balance sheet and via mark-to-market Fantasy!

Nationalize GOLDMAN and CHASE for crimes against the US and Financial Terrorism!

Claw Back All bankster Executive Compensation!

Prosecute Blankfien and the banksters and give them a one way LIFETIME ticket to bernie's cell!

TAX FINANCIAL Transactions!

END SHADOW MARKETS!

END DERIVATIVES, CDSs, CDOs, and all smoke and mirror transactions.

IMPLEMENT ONLY OPEN MARKETS, LET THE SUN SHINE ON ALL TRANSACTIONS!

AUDIT & NATIONALIZE THE FED!

FIRE GEITHNER and his FED CABAL -

Dimon on NY Fed Board, fox guards henhouse!

FIRE ALL GOLDMAN EMPLOYEES in the administration. obama promised he would not have any lobbyists!

END THE TYRANNY OF THE TOP 1%!

IT'S TIME TO RETAKE OUR COUNTRY FROM THE TERRORISTS!

[fortysixandtwo]

02:49 PM on 05/17/2012

Better get yer physical silver while it is cheap. More QE right around the corner.