JPM: It Gets Worse

Posted 2012-05-21 08:17
by Karl Denninger
in Banking System

The sharks are circling and they smell blood in the water....

Irvin Goldman, who oversaw risks in the JPMorgan Chase & Co. (JPM) unit that suffered more than $2 billion in trading losses, was fired by another Wall Street firm in 2007 for money-losing bets that prompted a regulatory sanction at the firm, Cantor Fitzgerald LP, three people with direct knowledge of the matter said.

Oh that's nice. But what's better is that apparently, when Dimon made his "tempest in a teapot" comment, he hadn't even seen the positions in question!

It's no surprise that the head of the CIO unit has left; when you represent to your direct boss (the CEO) that you have something under control and he goes public with your representation, taking it as his own and that turns out to be BS, you are (and should be) cooked.

The bigger question as I have pointed out is what comprises the actual book, what was being protected, and what is the actual loss that's out here at the present time? Despite the claim that the loss was "just" $2 billion reports have emerged placing it at between $3-5 billion -- which is considerably higher.

What's the real number?

The answer right now is "who knows?" and that is a problem.

All of this might be thought of as "funny" by some people. I might even agree if their CEO wasn't on the board of the NY Fed and the company wasn't responsible for playing financing games with government debt.

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