The day after Jamie Dimon went public with JPM’s losing CIO derivatives hedge our sources informed us JP Morgan’s actual losses were $100 billion.
The Fed’s latest stress test indicated $32 billion in potential derivatives losses for JPM.
Those two figures are becoming more accurate by the day as JPM managers are reportedly now admitting that the losses have grown to $9 billion, and the trade has yet to be unwound.
We are starting to talk real money as $9 billion is 2 quarters of JPM’s net income!
If JP Morgan actually reports CIO losses in the range of $9 billion (we expect accounting gimmicks such as litigation reserves to obscure the true losses) expect Moody’s to downgrade The Morgue further.