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JP Morgan's Potential Trading Loss Just Keeps Spiraling Higher

When JPMorgan first announced that its CIO office had blundered into a huge trading loss, the number was pegged at $2 billion, though the company said it could go higher. Then the loss was reported to be $3 billion. And now....

$5 billion or more? From the WSJ:

The nation's largest bank has said publicly that its losses on the trades have surpassed $2 billion, and people familiar with the matter have said they could over time reach $5 billion.

But the losses could be even bigger if the company sells its positions into a market that has turned against its positions, some traders say. Improvements in the markets could slice the bank's losses.

So the basic issue seems to be: Unwind now and stomach large losses, or wait and hope that things improve.

Either way, it's clear that JPMorgan has a live and active problem on its hands.

Read more: http://www.businessinsider.com/jpmorgans-potential-trading-l...

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SteveMT's picture

JP Morgan now looking at $7B loss. Typical worsening bad news.

Double trouble at JP Morgan: trader's losses could exceed $7bn
US bank has cancelled its plan for a share buyback in the wake of the growing crisis
Nick Goodway , Gideon Spanier - Tuesday 22 May 2012

The crisis at JP Morgan escalated yesterday as it emerged its trading losses in London could rise to as much as $7bn (£4.5bn) and the US bank cancelled a share buyback. Fears were growing that the losses could spiral from an initial $2bn, which was declared on 10 May, as JP Morgan struggles to unwind the massive bets made by the so-called "London Whale" trader Bruno Iksil.

Let's Figure Out What Facebook Is Actually Worth...

Well, Now That Everyone Has Sobered Up, Let's Figure Out What Facebook Is Actually Worth...

Looks like $20. Still time to short.


Saw this thread..... then

Saw this thread..... then raced down to my local coin store and bought more silver

When the Shoeshine boy recommends gold

Did you notice the drop in silver today?

Last year almost every advert on the Alex Jones website was telling you to buy silver and gold from Alex Jones Recognized dealers. He had them on his shows almost everyday spewing the merits of buying gold NOW NOW NOW! Alex promoted you spend your cash on gold so aggressively that it spawned various "buy gold" oriented websites including this one.

"Buy Gold Now from Brokers I trust. The Dollar is dying"

If you followed him and bought gold you were taken to the cleaners.

"When the shoe shine boy tells you to buy gold, it's time to sell"

We are like the mechanism of a watch: each part is essential.

you sound like a shoeshine boy


woo hoo!

What do you have against Shoe Shine Boys?

We all play our parts in this society including the shoe shine boy. I never judge people based on what career they have chosen in life.

But when shoe shine boys tell you to buy gold, sell it.

Look at a gold chart for last year...the peak of the "buy gold" scam.

We are like the mechanism of a watch: each part is essential.


who said i don't like shoe shine boys? you are putting words in my mouth.

woo hoo!

Good move.

You may have to ride a few waves, but the payoff at the end of the ride will be worth it.

Time to Sell

Here's a freebee:

When the shoe shine boy tells you to buy silver, it's time to sell.

We are like the mechanism of a watch: each part is essential.

show me where the shoe shine

show me where the shoe shine boy was telling people to buy?

Search Alex Jones. But

Search Alex Jones. But heh...you don't need to look further than the title of this forum

"Peace Gold Liberty"

We are like the mechanism of a watch: each part is essential.

thats fine

as long as they don't get bailout and suffer for their loses otherwise release the anarchists fiery on those bankers if they do.


Definition of 'Naked Shorting'
The illegal practice of short selling shares that have not been affirmatively determined to exist. Ordinarily, traders must borrow a stock, or determine that it can be borrowed, before they sell it short. But due to various loopholes in the rules and discrepancies between paper and electronic trading systems, naked shorting continues to happen.

While no exact system of measurement exists, most point to the level of trades that fail to deliver from the seller to the buyer within the mandatory three-day stock settlement period as evidence of naked shorting. Naked shorts may represent a major portion of these failed trades.


If you want to really dive down into a rabbit hole:


Includes detailed investigation on many related areas -- shorting, company failures, MSM distortions, social media fronts, sock puppets, mass disinformation via wikipedia (implicating Whales himself), all tied back to the DTCC (Depository Trust & Clearing Corporation).

[WARNING: Watching whole presentation may blow mind.]

I would be interested in any solid info that can either support or debunk this presentation. I checked out some of the wikipedia stuff myself and it seemed to hold up to scrutiny.

JP Morgan CEO on Fed Reserve Board?

I mean really, can you say conflict of interest? You can find an article about this on CNN. Don't want to give them a link though so you'll have to look it up.

Not really when you think about it lol

They aren't protecting our interests to start with are they? There can only be a conflict of interest if you in fact believe they are here to protect us in some way. :)

Patriot Cell #345,168
I don't respond to emails or pm's.
Those who make peaceful revolution impossible will make violent revolution, inevitable.


Up in the sky! Is it a bird? Is it a plane? No! Its Super Ben Bernankes helicopter to the rescue! Up up and away!

Pocket change

They will make it up next year when interest rates go up imo.

The banks will make a fortune when the rates finally spike.

Ie. Either by confiscations or by payments

Long live the credit cards lol


The New Super Elite American Platinum With Gold Stars C.C.

I agree. The past few years have not been good for banks as far as they claim. Earnings this year are viewed as disappointing. Once interest rates rise again banks and the value of their shares are expected to rise to the moon.

As for credit cards that is an American cultural story. No other culture shares the love for credit. Living beyond one's means is as American as apple pie.

Has the Lehmann Crash thought Americans anything about the dangers of credit cards? Some believe that Americans are itching to return to their true love - the credit card (once they get a job so that they can qualify for the new super elite American platinum with gold stars class card "The only card to truly impress your neighbours"

We are like the mechanism of a watch: each part is essential.

JPM is a primary dealer. 2b a day for military,banking cartels.

JP Morgan is the biggest welfare recipient overtaking Goldman (AIG Bailout).

Now Bloomberg did post the TARP information... but for most people Jon Stewart give the best thumbnail account of it the links can be supplied. Daily Show December 1, 2011 if the clip link is pulled.


The Facebook underwriters received 216 million in crony fees.. Morgan Stanley, Goldman, JP Morgan..

Instead of Face Book use concerned people should use and donated to sites like Daily Paul, Zerohedge, and give credit to Bloomberg. Without Ron Paul the transparency issue would not have allowed the FOIA (Freedom of information Act) to be filled. I have actually heard from uninformed people that the TARP actually made money. Well the information is there and claw backs should be in order. Dodd Frank does nothing to regulate derivatives. In fact Dodd's wife was/is a derivatives trader.

The data is on Bloomberg and the cost and opportunity cost can be calculated.. TBTF is the primary dealers funding governments with lazy congressional appropriations and ignorance (giving benefit of doubt). This is blowback, Professor butterscotch, "WTF did Martha Stuart go to jail".


J.P. MORGAN IS CALLED J.P. MORGUE by the trading community. They are naked short lots of metal positions, and 70Trillion of derivative exposure. Read the book House of Morgan and understand the relationship between the FED, understand Morgan's history.

A good primer..

JP Morgan

No one on the street calls JPM J.P. Morgue. I think you being extremely liberal with the term "trading community". Max Keizer, an over-the-top heckler of Jamie Dimon is known for using such insults. Perhaps you are referring to OWS or Alex Jones? Referring to Occupy groups and Alex Jones customers as the "trading community" is just plain ridiculous and an unfair insult at JP Morgan.

BTW, he'll be dragged in front of your senators today so that they can earn brownie points with their socialist anti capitalist supporters.

As for your statement regarding "naked short selling" you should be aware that there is nothing illegal with that. It does sound spooky though.

I do agree with you however that people need to educate themselves. Group mob think is a dangerous thing with the stones are held by idiots.

We are like the mechanism of a watch: each part is essential.

you are a complete moron.

you are a complete moron. Naked short selling is the act of selling something you don't have. he that sells what is not hisn goes to prison. JPM is one of the most corrupt institutions the world has ever seen. Take your lies and leave.

Selling Kool Aid from a Soap Box

Dude, you need help. I was pointing out that JP Morgan is not known as JP Morgue by traders and that the trading JP Morgan did was technically legal.

One of the problems with this forum is that it is filled by uneducated Kool aid drinking idiots. How does my pointing out what I did make me a complete moron? LOL

My posting says nothing about my personal views regarding JP Morgan and banks. I was pointing out facts.

Selling Kool Aid from a soap box is what makes you look moronic to the public.

It does not do Ron Paul ANY GOOD to promote idiotic claims based on conspiracy theories and just plain misinformation. The goal of my posting was to infuse some facts and down to earth information.

You are not helping the credibility of this website when you spread misinformation and conspiracy theories.
Once again:
JP Morgan's trading was not technically illegal
JP Morgan is not commonly known as "JP Morgue" by traders

We are like the mechanism of a watch: each part is essential.

When JPM and 4 other large

When JPM and 4 other large banks are in collusion with each other to control a market, that is illegal. Their trading was technically illegal.Take your crap and misinfo elsewhere. Ofcourse JPM is not known as the morgue to other "traders" why would they rat out their meal ticket. You and your whole 2 weeks here are not helping this website at all. Now if you really want to get into facts we will see who looks moronic.

Now explain this. when one entity owns over 30% of a market that is not illegal?

Ummmmm it is actually legal. Your definition is correct.

Link to SEC re: abusive naked shorts--




Yes, the United States has instituted new rules to protect investors. Regulations apply to banks in the United States. This is why trading in the US is dwindling to a crawl.

I made no personal judgement in my posting. Only pointing out that the trading that JP Morgan was involved in was technically legal.

"Dodd-Frank" as the new trading regs are known have come to you courtesy of the democrats AFTER millions of people around the world lost their savings as a result of the scams pulled off by American banks supported by the American govt under both administrations (republican and democrat).

Yes, my claim is correct, thanks for recognizing that. And yes, you are correct by posting that link. The USA under the democratic senate passed a massive list of regulations to snuff out bank trading which is killing trading.

We are like the mechanism of a watch: each part is essential.

unless you are the allies

unless you are the allies selling palestine to the jews...


bailout ?

i think we will have to bail them out, otherwise all hell will break lose !!
/satire off

or so the media experts and the bought-n-paid for politicians will tell us.
Romney and Obama would probably have a fight about how much of the taxpayers money they want to give them - so that these phoneys can get more campaign contributions !!

Dr.Ron Paul's 2002 Predictions