jpmorgan unexpected 4 billion loss

Yeah, i think this whole announcement could be some sort of plot. They're so dishonest never know what they are upto.

is melly the london whale?
after going bankrupt through a series of disastrous short trades he talked his way into a job at JPM (they thought lightning couldn't strikes more than 10 times in the same place )

I was right. You still don't understand what they announced and what the implications are. Neither does the halfwit, pseudo-intellectual from NZ. Because if all you think took place here is a rogue trader making some disastrous trades, then you read the headline and stopped there.........like always.

What an intriguing "plot"........LMFAO.

I would be interested to hear your theory

I continue to find it amazing that they let benny the clown alone with a computer for a couple of hours every day at the asylum.

oh, and melly got free lunches at the jpm cafeteria for a few weeks, sadly he was on commission though

"So you want to know what happened too, polyahole?"

the last thing i want is another one of your brainless, rambling, fantasy stories.

what does it all mean then ?

It was apparently an " economic hedge " gone wrong.
Now if you believe that then good for you.
Hint, prop trading illegal, hedging is legal.

Blue, send me a PM if you need more clarification. I resigned the position of trying to educate the lemmings and clowns on here, it didn't pay very well, so I'm trying to keep this to a minimum.

In a nutshell:

polyahole's rants about a trader nicknamed the "London whale" being the person responsible for engineering those loses are patently false and shows that he doesn't know or understand anything beyond reading the sensational headlines……..while fondling his iPad.

The majority of the losses came from CDSs in corporate bonds, betting against metals had nothing to do with it. Despite JPM's previous denials that they didn't do prop trading, and that their CIO unit was simply hedging and rebalancing the risks of their balance sheet, in reality the CIO was doing exactly that, betting and taking risks with the banks "own" money.  London based credit trader Bruno Iksil (the London whale) amassed an outsized position which hedge funds bet against. Bruno however was not calling the shots, he simply executed the trades. The shots were called by Ina Drew in NY. The CIO dealt in a wide variety of synthetic financial products, but not commodities. (I can give you more details in a PM if you need them).

What the implications?

1. Although JPMs financial position remains strong (as far as anyone dare say with M2M suspended) as they have been earning on average $4bn plus each quarter for the last two years and have $2.3 trillion of assets supported by $190bn of shareholder equity, this doesn't help their reputation and the SEC already announced they will be investigating. What else is taking place there that investors don't know about? How big is the real loss? Judging by JD's tone and choice of words yesterday we should expect the losses to increase.

2. What are the ramifications for TBTF banks in the future as far as Volcker rule regulations go? The argument that they can manage risk without the rules and regulations tightening regarding prop trading has gone out the window. How does this effect the TBTF banks stock prices going forward?

3. More near term the big question is, WHO ELSE? HSBC has moved in a virtual lock step with JPM. What about them? When MaGuire testified in front of the CFTC on silver price manipulation, both JPM and HSBC were called out. When JPM closed out the MF Global bankruptcy, everyone got shut out except one company. That company was allowed to rape and pillage what was left of MFG. That company was HSBC. I would say the odds of HSBC being involved in risky prop trades that could blow up in their face at any moment is more than fair. How will the market react once that realization sets in?

There will be a lot more unfolding on this story in the days and weeks to come. The only reason JPM made the announcement yesterday in a such a panic is because the information was leaked. Someone bought right before the close yesterday (before the announcement) almost 14,000 $41 puts at about 43 cents that would expire today. That trader made a sh1tload of money (about 6Xs the investment) on puts that were a virtual certainty to expire worthless.

melly stalling for a couple of days to give himself time to look up what happened on the internet.

The clowns from down under ********** each other off again.

I never claimed I have insider knowledge, all I said is that I understand what happened, and more importantly I understand the ramifications.

The theory of relativity is public knowledge but very few of the public understand it. Benny the clown wouldn't know the difference before CDX Series 9 and Star Trek 5, and I imagine the first thing polyahole did after reading my post was to google Ina Drew.

To call you clowns at this point is to flatter you.

Thanks Blue.

Nice quote. Something that went largely unnoticed in Fisher's statements yesterday is that he actually used the words "money printing" by the FED. For a member of the FED to use those words is unheard of.

They will print and print some more because they have no other choice. Anyone who still hasn't clued in about that is cannon fodder.

J2- what I find incedible about you is this- I told you many months ago that silver was going nowhere and if it did go up it would'nt go up by much.

Since then its down 3 or 4 dollars an ounce.

Yet I did not receive a thank you.

but you thank melly.

Give me strength

Menelaus is no doubt the breadhead of the forum.
There has to be one always.

No, I just thought that perhaps when it hits Katy's $960 this year you could afford to buy the front bumper.

polyahole, your attempts at "clever" unfortunately fall way short of the mark. Why am I not surprised ?!?!

Mrben
13 May 12 02:22
Joined:
25 Oct 03
| Topic/replies: 5,144 | Blogger: Mrben's blog
J2- what I find incedible about you is this- I told you many months ago that silver was going nowhere and if it did go up it would'nt go up by much.

Since then its down 3 or 4 dollars an ounce.

Yet I did not receive a thank you.

but you thank melly.

Give me strengthCryCryCryCry
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You also said gold would go under $1000 didn't you? Apple had 7 major corrections on the way up (maybe more since I read that article). Do you write off everything which has a correction? Silver will be above $50 an ounce in the medium term IMO.

come on J2.Silver now down in the 6-7 dollars range. You've lost 20% plus and had zero interest.
By holding physical you have no stop loss.

You are failing to embrace the basic premise of investing- buy low sell high, sell high- buy low.Rather you are holding on for the catalyst of some mythical potential event to  crystalize a huge profit.

If said event does not occur- where are you?

You claim that silver reaches 50$ is as irrelevant as it is absurd. You need silver to rise to at least equal the cost of holding.Newsflash-it has'nt.PLUS you need some kind of return premium for your risk.

Holding physical ( as recommended by investing superstar melly) is an abomination. Its all predicated on one single event coming to fruition.If so the payoff will be big- you think?.What is the chance of this event occurring?

  You are taking a risk of perhaps 50% with an event probability of less than 10% with a payoff of  lets guess at 50$ so 50% approx.

   An absurd equation by any measure.

Mix those numbers around however you like and the result is still rubbish.

Your only decent payoff comes with the mythical armagedon event.

Melly will tell you the event probability is 100%, if you believe that  you must be using utube videos as your research material.

The sequence of events that needs to occur to get to that point are many and involve many decisions by govts.All those decisions need to be in the same direction to get to said point.There is little if any chance that so many govt of different countries will  make those poor decisions concurrently.

  Get real.

Please answer this- last 3 weeks markets have gone down and down- silver and gold have gone down and down. If markets were to totally collapse under the melly assumptions- why would gold and silver rise?

Repeat after me- their may be a market collapse, but it wont go to zero.Gold and silver will follow the markets down but they wont go to zero.

   Stop  believing in this melly type nonsense, start listening to some others here and reap the rewards.