MSM Reporting JP Morgan’s trading loss now stands at $9 Billion

Reporting on this is silly in a way, because it has always been postulated that the “$2 billion” trading debacle that had Jamie Dimon in front of congress might actually be for a much larger, undisclosed amount.

Well, here’s confirmation that those initial reports were true – however it remains to be seen whether even more losses will be uncovered.  As Max Keiser has reported, these banks are simply insolvent and it is only the artificially intelligent trading platforms that are giving the system any semblance of stability.  Undeterred, the cabal continues on as it is now being reported that JP Morgan is down 5% before trading opens as it has been revealed their trading loss has been unwound a bit and now totals 9 Billion!  Interesting development given the greenlight by Drake as well as the report from yesterday detailing a series of “living wills” developed by the biggest banks in case they fail.  Read on for the official piece:

(Reuters) – JPMorgan (JPM.N) (JPM.F) shares fell 5.3 percent in Frankfurt on Thursday after a newspaper reported that losses from a bungled credit derivatives trade could reach $9 billion in a worst-case scenario.

The U.S. bank’s shares in New York are also trading down 5.4 percent in pre-market trading.

The story was “likely disappointing today” for the shares, Evercore Partners said in a research note.

JPMorgan said in May that it had lost $2 billion on the trades, but these losses have mounted in recent weeks as the bank has unwound its positions, the New York Times reported on Thursday, citing people briefed on the situation.

An internal report at the bank projected in April that the losses could reach $8-9 billion, assuming worst-case conditions, the newspaper said.

JPMorgan declined to comment.

(Reporting by Sarah White and Douwe Miedema)

Jamie Dimon called “Crook” to his face!

FOX News: Shareholders sue JP Morgan over trading loss

That was quick. 

 

• 
  Reuters

JPMorgan Chase & Co was the target of two separate lawsuits by shareholders on Wednesday, accusing the bank and its management of excessive risk that led to trading losses of at least $2 billion.

A spokesman for JPMorgan Chase declined to comment on the lawsuits, which were filed in U.S. District Court in Manhattan, days after Chief Executive Jamie Dimon’s May 10 statement that a “failed hedging strategy” caused the massive loss over the last month.

 

JP Morgan Black Swan? Greg Hunter comments…

Greg Hunter of USA Watchdog published a short but incredibly poignant article exploring the possibility that JP Morgan’s surprise announcement of a $2bln trading loss could be just the tip of the iceberg.  Similar to how MF Globals originally stated loss of 700 million blew up to over 3 Billion, JP Morgan has not yet disclosed how much this trade will eventually cost them.  We have been hearing for some time that there is a momentous amount of changes in store for the financial system, and this most assuredly is another one of those pivotal events contributing to that change.  Along with all the announcements to conduct oil trading in gold, the new BRICS financial alliance, and the IMF recently becoming a buyer of Gold,  JP Morgan’s trading loss signals a broader trend that the fiat empire is coming down.   Click Here for full article.

JP Morgan Black Swan?

The surprise announcement by JP Morgan that it lost $2 billion in trading derivatives was portrayed in some mainstream media outlets as no big deal.  The Associated Press reported Friday, “Bank stocks were hammered in Britain and the United States on Friday, partly because of fear that a surprise $2 billion trading loss by JPMorgan Chase would lead to tougher regulation of financial institutions. . . .”The portfolio has proved to be riskier, more volatile and less effective as an economic hedge than we thought,” CEO Jamie Dimon told reporters on Thursday. “There were many errors, sloppiness and bad judgment.”   (Click here to read the complete AP story.) 

I think the market thinks this $2 billion surprise loss is much more than fear of “tougher regulation,” or that it was just “sloppiness and bad judgment.”  Remember MF Global and its bankruptcy on Halloween last year?  It, too, was trading in risky derivatives, and it lost $6 billion that wiped out the firm along with $1.6 billion in segregated customer cash.  In the aftermath, we still do not know where the customer money is, but we did find out MF Global was leveraged 40 to 1.  It would be hard to believe other big banks were not leveraged in risky derivative trades the same way.  This is why traders on CNBC were hitting the panic button last week.  Joe Terranova said, “I will dump my Bank of America on this news.”  Other traders on the show were equally scared.  “I can almost guarantee it’s not just JPMorgan,’ added trader Guy Adami.  ‘JPMorgan looks like it’s going to bring down the entire space,’ said Steve Grasso.”  (Click here for the complete CNBC story.) 

Max Keiser explains why JP Morgan may be served a piece of humble pie

Since the genesis of The Golden Rule I have alluded many times to Max Keiser’s theory that JP Morgan was using its stock to manipulate the silver market.  This has been brought up by a number of whistleblowers and is corroborated by stunning coincidence whenever JP Morgan’s stock price approaches the current spot price of silver.  Over the last few years whenever JPM’s stock slides lower or silver rockets higher, the white metal gets smashed downward in an action that any sophisticated buyer knows can only be the result of manipulation.
Keiser explains further the significance of JP Morgan’s recent 2 Billion dollar trading loss and how we may be on the verge of one of the largest shorts ever being unable to cover.

As we’ve been saying for two years. JPM uses it’s own stock to collateralize naked silver short positions (echoes of Lehman and Enron). My analysis has concluded that liability from a rising silver price vs. loss of collateral value of the stock renders JPM’s balance sheet null and void when JPM’s stock price drops below the price of Silver. We’ve only seen this a couple of times since I made this call two years ago, BUT NEVER ON A SUSTAINED BASIS of more than a day or so. When the price of Silver popped over JPM’s stock price, the London desk quickly fabricated a few billion fresh naked silver shorts to tamp silver’s price down. Given this week’s revelations regarding JPM’s reckless balance sheet incineration the ‘crash jp morgan, buy silver’ trade has never been more important as a way to take down this financial terrorist. The SLA has been winning battles all along. Now we are poised to win the war as well. Bye-bye Jamie. NOTE TO HEDGE FUNDS: Sell JPM’s stock naked to Hell. This is the easiest money you’ll make this year.