JP Morgan: We Were Full Of Crap in [Market-Ticker]

Posted 2012-06-28 08:55
by Karl Denninger
in Banking System

JP Morgan: We Were Full Of Crap

$2 billion eh? I said 20 when it was first announced, and maybe more. Now it looks like after several "revisions" (all higher) the current "estimate" is that it might be $9 billion.

Morgan Chase & Co. (JPM) fell more than 6 percent in European trading after the New York Times (NYT) reported the lender’s trading losses from credit derivatives may total as much as $9 billion, exceeding the firm’s initial estimate.

Exceed? By more than 400%, right?

Usually one would say that something "exceeded" an original estimate if it was 10 or 20% higher. What's 450%? I'd say that the original "estimate" was a complete load of crap, or if you prefer, a lie.

Of course the other alternative is that Dimon had absolutely no clue what the final exposure might be and simply pulled a number out of his ass. That wouldn't shock me either.

The stock is down a buck pre-market.

Disclosure: No position but if we were to ever see anyone held to account for this sort of crap I'd go long handcuffs, leg irons and iron maidens.

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User Info	JP Morgan: We Were Full Of Crap in forum [Market-Ticker]
Trades50 Posts: 4218 Incept: 2007-10-30 Land of Tax and Spend	Didn't Dimon push for less banking oversight? Greedscam is still touting that getting rid of GlassSteagall was the right thing to do. Self-policing has worked real well (sarc). ---------- When the people fear the government, there is tyranny. When the government fears the people, there is liberty. - Thomas Jefferson 2012-06-28 09:22:53 Permalink
Ghopper Posts: 2317 Incept: 2011-06-11 Staten Island, NY	2012-06-28 09:48:42 Permalink
Donethat Posts: 771 Incept: 2009-04-22	Damn, they would still have 110 Billion in "real" equity and 58 Billion in intangibles. Well no company is too big to go bankrupt if they made a lot of stupid speculations, err investments. 2012-06-28 10:06:46 Permalink
Ladyliberty Posts: 100 Incept: 2012-05-08 Wisconsin	This sums it up nicely Essentially, JPMorgan has been operating a hedge fund with federal insured deposits within a bank, http://dealbook.nytimes.com/2012/06/28/j.... 2012-06-28 12:20:53 Permalink
Mannfm11 Posts: 3556 Incept: 2009-02-28 DFW, Tx	Lets take away FDIC and see how much capital they have? Bet they couldn't get -$400 billion less than book for what they would need to sell. ---------- The only function of economic forecasting is to make astrology look respectable.---John Kenneth Galbraith Last modified: 2012-06-28 12:29:03 by mannfm11 2012-06-28 12:28:17 Permalink
Drjerry Posts: 584 Incept: 2007-11-06 Seattle	We ~~Were~~ are Full Of Crap in forum [Market-Ticker] 2012-06-28 12:57:40 Permalink