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|User Info||JPM: Watch The Duplicity!; entered at 2012-05-21 14:27:01|
Registered: 2009-02-28 DFW, Tx
The share buyback is about driving the price up and providing market for insiders to sell. I would say that if a company was legitimate and trading below book, it might make sense to buy back stock. In the case of a bank, which is always insolvent, it has other purposes. My guess is Dimon don't want to sell at these prices so why provide the market? Remember, it is a tiny loss for a monster like JPM. I recall MER lost $1 billion in MBS's in 1987. JPM would probably have to lose $25 billion today to equate. |
This begs the question, what is the trade? I have read various accounts. The account I haven't read is how many trades are haywire? JPM has lost about 25% of its value here, a figure of $40 billion roughly. $40 billion doesn't equal $2 or $5 or $7 billion. It is trading below book, that is if book is legit.