JPMorgan May Lose $5 Billion on Derivatives, WSJ Reports

[flamingdem]

http://www.bloomberg.com/news/2012-05-18/jpmorgan-may-lose-5-billion-on-derivatives-wsj-reports.html

JPMorgan Chase & Co. (JPM)’s loss from derivatives trading may widen to $5 billion, the Wall Street Journal reported.

Chief Executive Officer Jamie Dimon personally approved the strategy that led to the trades, without monitoring how they were executed, the newspaper said, citing people familiar with the matter that it didn’t identify. His failure to closely regulate that activity caused resentment among executives whose departments face tighter oversight, according to the Journal.

JPMorgan last week announced a $2 billion trading loss on synthetic credit products, or derivatives tied to credit performance. Dimon said the transactions, intended to manage risk, were “egregious” failures by the bank’s chief investment office. JPMorgan has said the amount could increase by $1 billion or more as it winds down the positions.

Joseph Evangelisti, a spokesman for New York-based JPMorgan, declined to comment on the $5 billion estimate. more at link

[AnotherMcIntosh]

1. JPMorgan might. Or we might. How soon before more bailouts?

[agent46]

2. I'm shocked

Shocked to find that gambling is going on in here!

[sabrina 1]

3. If only there had been prosecutions for the massive crimes that caused the Global Meltdown.

But why would they NOT continue to do what contributed to the Meltdown when there are no consequences. I mean if you could rob a bank and without consequences, imagine how many people would be robbing banks.

The extent of the corruption, always described as 'mistakes' when you are a billionaire, is simply beyond anything seen in history, especially considering the destruction of so many countries and so many lives. An Imperial Army could not have done more to destroy democracies than these criminals have done. And still, not one single arrest or even a criminal investigation.

Derivatives were the main cause of the Meltdown. And it's not as if they were not warned, over ten years ago, by Brooksley Born for one, that what has now happened would be the result if regulations were not put in place to prevent it.

[MannyGoldstein]

4. Thank God JP Morgan isn't taaxpayer backed!

Oh wait...

[pa28]

5. I have a feeling his signature will be on all our printed money starting next year.

President Obama characterized this person as one of our best and brightest in banking. Dimon has stated that he would like to serve as Treasury Secretary.

I have a feeling we'll be hearing quite a bit more from Jamie Dimon or whoever else appears out of the revolving door next year. Can we please boot failed models out of policy discussions and give somebody like Robert Reich a seat at the table?

[progressoid]

6. I'm hoping that this will be a red flag

and keep him out of gov't for a while.

Hope.

[rhett o rick]

7. i am glad the single person responsible resigned. I feel soo much better. nm

[marmar]

8. ........

[Igel]

9. It'll reduce profits.

It'll make JPMorgan just a tad smaller.

Somebody made money off of JPMorgan. Probably a number of people, with a few people making a lot.