Last weekend we advised SD readers that our sources had informed us that JPMorgan’s derivatives losses sustained by their CIO desk were actually $100 Billion, not the $2 Billion admitted by Jamie Dimon to investors.
Well, one week later, the MSM (WSJ) is now reporting that JPM’s CIO has now lost $5 billion.
Perhaps more interesting, the WSJ states that Jamie Dimon personally approved the delta-hedging of its interest rate swaps positions which has resulted in the FUBAR derivatives losses for JPM.
So lets get this straight. The Big Cahuna who approved the strategy gets a $23 million bonus, and reappointed as CEO by shareholders, while Iksil and boss Achilles who implemented the trade for Dimon get shown the door and have The Morgue attempt to claw-back their bonuses?
The US mega-bank JPMorgan Chase & Co loss from derivatives trading may widen to 5 billion dollars, the Wall Street Journal reported on Friday. CEO Jamie Dimon personally approved the strategy that led to the trades, without monitoring how they were executed, the newspaper said.
JPMorgan last week announced a 2 billion dollars 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 dollar estimate.
The largest US lender by assets didn’t have a treasurer during the five months when the trades took place, the Journal reported in a separate article.
JPMorgan’s chief investment office oversees about 360 billion dollars, or the difference between deposits and what the bank lends. Matt Zames, who was appointed to lead the division after the loss was reported, shook up leadership and announced a “renewed focus” on hedging risks.
Read more:
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/images/live/s_silv.gif)
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/images/live/s_gold.gif)
Jamie, I recommend Vaseline…
There is no honor today among the people who are supposedly our ‘leaders’. It used to be that the captain would go down with his sinking ship, but apparently today the ‘captains’ of Wall Street get priority and reserved seating on the life-boats, well ahead of even the women and children.
Too bad for the sub-ordinates who get to be their scapegoats.
one of jamies cohorts made the commet that the “muppets” deserved to be flessed
wellllllll it looks like jamie needs to do some time at the gray bar hotel
or is the SEC going give this a pass as well
Wow–!.2 Million oz. Withdrawn From Comex Eligible
600,000 received at Brinks—Quite a Bit of Volatility!
COT REPORT READ MORE
Commercials Added 83 contracts Long
Reduced Shorts By 1908 Contracts
Combined Was More Dramatic:
Commercials Reduced Shorts By 7454 Contracts
And Increased Longs By 2153 Contracts
My Initial Take on the COT Report:
The Net Short Percentage of Total and Registered Silver Inventory are now at or near multi-year lows of 55.89% and 222% respectively—I have said that we need to see them increase their net shorts as a percentage of total inventory to show a real bottom in the silver price.
Since this number is still dropping, this does not indicate that we’ve confirmed a bottom—although, as I also said, we could see a higher low in the registered indicator any week now—Yesterday, I thought basically, that we’d wiggle until July 4th and I still believe this.
My call: $100 bn losses in 7 weeks.
$ 5,000 million LOST.
I Can’t Say It With Words But I Can With Pictures
Plebrain;
M45 That’s a great pic…Jamie’s High School book “Once Upon a Dime” describes two “socially responsible liberals who use organic fertilizer to grow their stupid money tree:
friends Lewis and Cluck, and Grover Clevelamb in an exciting story about
a tree that actually grows money! Truman and the boy use different
organic fertilizers on the tree, each of which cause the tree to grow
different kinds of money.”
BTW: This book can’t even get the idea right–It proposes this nonsense about dimes in the title, but grows paper instead! It also contains no “Math” whatsoever!—LOL!
The losses at JPM due to their derivatives gambling could run a lot higher than the 3-5 billion that they are now suggesting. JPM does, in fact, have about $70 trillion of this crap on their books. Hmm, a little math if you please… JPM has assets of about $200B, so if a little less than 0.3% of these derivative bets go against them, they will be instantly bankrupt. That would make them the next MFer in line. Problem is, Dimon’s buddies at the Fed and at the US Treasury would surely ride to the rescue with unlimited amounts of fake money to save their ruddy butts. Sigh. Makes me glad that I invest in silver, brass, and lead.