JP Morgan Has $2 Billion Trading Loss

Aoxomoxoa said:
So you are happy for the bill to go through then?
Click to expand...

haven't read it......I have been and continue to be on record as saying derivatives should be outlawed instead of regulated.......I'm still waiting for someone to show me something positive that has come out of derivative trading.....
 
No more bail outs for Wall Street, let's see if they are too big to fail, Dimon keeps saying they made money.
 
Rana said:
No more bail outs for Wall Street, let's see if they are too big to fail, Dimon keeps saying they made money.
Click to expand...

first put Glass Steagall back in place, repeal Dodd/Frank fiasco, then let the investment banks flop at will.

This is what you get with Dodd/Frank...

http://www.sfgate.com/cgi-bin/artic...15/bloomberg_articlesM436R30YHQ0X01-M439R.DTL

The OCC has about 70 people devoted full-time to monitoring JPMorgan's banking activities, including the activity of its chief investment office where most of the losing trades happened in a London unit. OCC examiners overseas operate from their own regional offices -- including one in London -- and aren't housed inside the banks as they are in the U.S.
Click to expand...

70 friggin people 'watching'...


"Although JPMorgan's loss apparently didn't occur in their trading book, one would think that the regulators would be asking for reports on all of the major risk positions held by the largest banks, wherever those positions are booked," Wilmarth said in an e-mail. "One would also think that the OCC and the Fed would be taking a closer look at trading operations in London" after trades at a London unit of American International Group Inc. contributed to the need for a federal rescue.
Click to expand...

One would indeed think that...

Clarke, a senior partner at Bracewell & Giuliani LLP in Houston, said the OCC should be held accountable if it missed shortcomings in the controls. "The examiners should be expected to test those controls and be sure that they're working and be sure that they're adequate," he said.
Click to expand...

Kind of the whole point of this wonderful new bureaucracy created by Dodd/Frank

"It's enormously challenging for an agency to play catch- up" in the largest banks, said Clifford Rossi, a former managing director of Citigroup Inc.'s consumer lending group and an executive-in-resident at the University of Maryland's Robert H. Smith School of Business. "There simply aren't enough people to watch over all of those things."
Click to expand...

70 people to 'watch' a bank and that is not enough? Unreal...

Blending "hedging and for-profit activities" is a recipe for trouble, Rossi said. This activity was "vastly complex," he said, and couldn't be easily understood by regulators -- or even some people at the firm.
Click to expand...

Herein lies the problem... the government hires people who don't understand the industry to police the industry. Government solutions at their finest folks...
 
PostmodernProphet said:
haven't read it......I have been and continue to be on record as saying derivatives should be outlawed instead of regulated.......I'm still waiting for someone to show me something positive that has come out of derivative trading.....
Click to expand...

If the "investment banking" operations are separated from their parent banks then they can do what they like, within reason, safe in the knowledge that they won't be bailed out. J P Morgan is a primary example.

http://www.alternet.org/news/155431...arsh_lessons_from_the_jp_morgan_fiasco?page=1
 
Don Quixote said:
true, but not likely, it would show too much, unless it was split among the top officers as 'pay' for services rendered...
Click to expand...

Kinda what I am thinking. NO one person would get it all anyway. But even a noticible hunk of 2 bill is nice to have.
But I am not really thinking about it being routed to others in JP Morgan but outside....

And after all almost no one gets fired for such things now-a-days it seems.
And it is not like it is their money they are losing.
They are kinda like the govt in that respect.
 
As usual...


Republican lawmakers rejected calls from Democrats for stricter oversight of Wall Street.


Rep. Shelly Moore Capito, R-W.Va., chairman of the House Financial Services subcommittee, noted the loss during a hearing about how best to regulate banks big enough to bring down the broader financial system.


Rep. Spencer Bachus, R-Ala., chairman of the full committee, said he's not worried about JPMorgan's trading loss affecting depositors or taxpayers.


"Even with this loss, I believe they're one of the most profitable institutions in the country," Bachus said.


http://www.freep.com/article/201205...ter-oversight-of-Wall-Street?odyssey=nav|head


When asked about JPMorgan, Romney adviser Eric Fehrnstrom said "we don't want to punish companies."

http://nymag.com/daily/intel/2012/05/gop-delays-financial-reform-vote-after-jpmorgan.html

The GOP is determined to reverse progress in financial reform...


 
Aoxomoxoa said:
If the "investment banking" operations are separated from their parent banks then they can do what they like, within reason, safe in the knowledge that they won't be bailed out. J P Morgan is a primary example.

http://www.alternet.org/news/155431...arsh_lessons_from_the_jp_morgan_fiasco?page=1
Click to expand...

I don't believe that they SHOULD be permitted to do what they like if what they like is marketing derivatives......derivatives drove up costs for consumers time and time again....can someone tell me a benefit of derivatives beyond "investment firms profited at the expense of consumers"?.......
 
You must log in or register to reply here.
Back
Top