JPM taking losses speculating on derivatives.

[rchiu]

Need to reinstate Glass-Steagall so we don't have to have FDIC rescue Chase if JPM makes some bad bets.

Heh I rarely agree with the left side of the spectrum, but in this case, it is so obvious Glass-Steagall need to be reinstated and enforced. I don't know why this Obama admin and his party with their left leaning idealogy hasn't look into this.

 

[Jhhnn]

That's just false, complete deregulation would result in immediate failures of bad banking practices and we would be left with the best form of banking, full reserve commodity backed banking.

Like that's the way it was prior to the FRB, which is completely delusional.

 

[Craig234]

Heh I rarely agree with the left side of the spectrum, but in this case, it is so obvious Glass-Steagall need to be reinstated and enforced. I don't know why this Obama admin and his party with their left leaning idealogy hasn't look into this.

Too bad 90-100% of the Republicans in power disagree with you. The progressives agree, however, but you are against them. I agree with you too few Democrats want this.

 

[LegendKiller]

It has nothing to do with people knowing where their deposits are going. It has everything to do with the notion that keeps being perpetuated by establishment economics that a free market is not able to turn savings into investments properly so banks become the intermediary for channeling savings into investments.

If disintermediation was so great, there'd be a lot more people making one-off investments. There was some guy on here saying how great micro-lending was, then the whole thing fell apart and he stopped hocking his crap.

Full reserve banking does nothing to fix what you think the problem is. The "Free market" isn't all that great at allocating its funds either, how do you think they'd allocate them in this complex of a world?

 

[Jhhnn]

In 2008, the govt lacked the authority to step in & reorganize non-bank entities, leading to the bailout. Dodd-Frank changes that, allowing FDIC style reorganization of any of the financial firms, forbids bailouts.

The problem with that is that they're still too big & too incestuously involved with each other, as even the FRB is beginning to recognize-

http://online.wsj.com/article/SB10001424052702304724404577297711326667808.html

10+ years of Repubs having their way wrt the markets led to TBTF in 2008, and they like it the way it is, so they're continuously trying to nibble away at Dodd-Frank...

 

[Svnla]

One more lesson in why to vote for progressive, the only group who represent the people against these powerful interests.

You mean like Barney Frank and his gang? :awe:

 

[Jhhnn]

You mean like Barney Frank and his gang? :awe:

Obviously facts & reasoned opinion won't matter to you, but I'll post this for people who can actually think-

http://www.washingtonpost.com/blogs...ousing-crisis/2011/11/28/gIQANqLH5N_blog.html

 

[Svnla]

Obviously facts & reasoned opinion won't matter to you, but I'll post this for people who can actually think-

http://www.washingtonpost.com/blogs...ousing-crisis/2011/11/28/gIQANqLH5N_blog.html

Ok, I will play. Link right back at you. You were saying something about facts and thinking? :awe:

http://www.boston.com/bostonglobe/e...ngerprints_are_all_over_the_financial_fiasco/

and I give you one extra = http://www.usnews.com/opinion/blogs/sam-dealey/2008/09/23/barney-frank-fesses-up-on-financial-crisis

Unlike other posters in P&N, I don't open my mouth to insert foot without links to back me up.

Note that my links are from liberal sources, not WSJ or FoxNews.

 

[DCal430]

Not all derivatives are bad, things like interest rate swaps can be very useful and isn't gambling.

 

[Anarchist420]

I agree with moment 100%, as I always do.

The reason fractional reserve banking existed in the Free banking era was because many States had loose credit policy and subsidized those banks that used fractional reserves. The monetary socialism that existed from time to time didn't help either.

Anyway, fractional reserve banking ends up either being given a central bank or being replaced with 100% reserve banking. Due to the fact that the U.S. Articles of Federal Republic created such a powerful national government, we wound up getting a central bank to protect fractional reserve banking.

Think it over... in a free society, why would anyone keep loaning their money out if they knew they wouldn't get paid back?

 

[yllus]

I'm curious as to whether Mr. Dimon was even aware of the bank's exposure before/while the losses were occurring. From the reading I've done on the banking crisis it would seem that the CEOs were blissfully unaware that their derivatives people had gotten them in that deep.

If he truly was unaware, additionally to reinstating Glass-Steagall I think it might be worth bringing the derivatives market under a regulator.

 

[Jaskalas]

Failed companies are supposed to burn.

Never should have bailed them out in the first place, nor should you ever bail them out again. That's how you get rid of the executives and their bonuses.

 

[Jaskalas]

Heh I rarely agree with the left side of the spectrum, but in this case, it is so obvious Glass-Steagall need to be reinstated and enforced. I don't know why this Obama admin and his party with their left leaning idealogy hasn't look into this.

They serve the 1%, because among them are moderates who look to buying votes. It takes mad dog partisans to not care about buying votes, not corrupt themselves for the 1% in the name of bipartisanship.

What you need are both progressives and libertarians replacing their respective Democrat and Republican parties. Otherwise our government will only ever continue to be the 1% protecting their own.

 

[chowderhead]

anybody go to jail yet for the financial meltdown/bailouts?
no?

 

[Ausm]

They are reporting big Mark to Mark losses today from derivative positions that are doing poorly. They also got downgraded.

Looks like JPM still playing. This is why Banks should not be playing at the craps table.

They got bailed out. Will they get bailed out again if they get hit with a liquidity crunch when they begin getting collateral calls?


http://www.cnbc.com/id/47377555

From WSJ

"J.P. Morgan Chase & Co. has taken $2 billion in trading losses in the past six weeks and could face an additional $1 billion in second-quarter losses due to market volatility, Chief Executive James Dimon said Thursday in a hastily arranged conference call after the market closed."



http://blogs.wsj.com/deals/2012/05/10/j-p-morgan-to-host-surprise-conference-call/


Dimon: "I understand fully why you, or anyone else, would question us generally."

<LI id=entry_46 class=postitem-liveBlog className="postitem-liveBlog">

• 5:25 pm
• by David Benoit
• Add a Comment

Dimon might be getting more combative. Mike Mayo just asked him what, in hindsight, he should have watched more closely. "Trading losses," Dimon deadpans. Then adds "newspapers."

<LI id=entry_47 class=postitem-liveBlog className="postitem-liveBlog">

• 5:26 pm
• by Stephen Grocer
• Add a Comment

Dimon: I am not sure how many times I can say this. It was a bad strategy, executed poorly.

<LI id=entry_48 class=postitem-liveBlog className="postitem-liveBlog">

• 5:29 pm
• by David Benoit
• Add a Comment

Dimon explains the CIO strategy's idea: "It has been on for a long time, it actually did quite well...it was there to deliver a positive result in a credit-stressed environment."

Umm Big Banks are still doing the same shit they did prior to the Economic collapse of 2008 this really shouldn't be a revelation to anyone.

 

[Ausm]

anybody go to jail yet for the financial meltdown/bailouts?
no?

Both sides of the aisle are in bed with Wall Street and it was inept deregulation that brought us this mess....my guess is we will NEVER see any meaningful crackdowns on the Politician's sugar Daddy.

 

[Darwin333]

Damn straight - enforce Glass-Steagall. NOW.

Wall Street hasn't learned a THING since our taxpaying money bailed them out. Wall Street has danced away and is prancing on all of our money while they hamper our economy and well-being.

It will only take a movement, a real movement (perhaps beginning with a real strong petition signed by millions of us), to make our politicians take notice and hear our voice to re-instate the proper regulations on the financial industry.

Hopefully (I hate to say that) this will begin the real downfall of JP Morgan (and hopefully that cesspool Goldman Sachs & others) that will be the real #ss-kick that Wall Street & our paid-off Government needs.

I beg to differ. They have learned that if there crap shoots work they make a fortune and if they don't we will cover their losses since they are even bigger than they were before. They have also learned that they can commit blatant criminal acts and not only not go to jail but keep the illgotten gains.

We have given them incentive to continue doing the exact same stuff.

 

[Darwin333]

If he truly was unaware, additionally to reinstating Glass-Steagall I think it might be worth bringing the derivatives market under a regulator.

This. They need to put all derivatives onto a regulated exchange like those used by listed options in the equity markets. Along with forcing all of the off balance sheet bs onto their balance sheets.

 

[Darwin333]

Not all derivatives are bad, things like interest rate swaps can be very useful and isn't gambling.

Then put them on an open market where investors and regulators both can at least see a firms exposure.

 

[Darwin333]

Too bad 90-100% of the Republicans in power disagree with you. The progressives agree, however, but you are against them. I agree with you too few Democrats want this.

Has anyone actually introduced a simple bill to reinstate Glass-stegal? What was the original bill, like 12 pages or something?

 

[Phokus]

Failed companies are supposed to burn.

Except when banking companies burn, they take the rest of the economy with it. I'm all for punishing the people who run the banks and investors, but leave the rest of us out of it.

 

[nehalem256]

This. They need to put all derivatives onto a regulated exchange like those used by listed options in the equity markets. Along with forcing all of the off balance sheet bs onto their balance sheets.

I have to wonder if this would actually be more important/valuable than reinstating an 80 year old Glass-Steagal Act.

 

[Dari]

I'm curious as to whether Mr. Dimon was even aware of the bank's exposure before/while the losses were occurring. From the reading I've done on the banking crisis it would seem that the CEOs were blissfully unaware that their derivatives people had gotten them in that deep.

If he truly was unaware, additionally to reinstating Glass-Steagall I think it might be worth bringing the derivatives market under a regulator.

He probably believed all the things that were said about him during the financial crisis and decided to take more risk...

Also, now bankers and their supporters can no longer count on Dimon to speak for them when he goes to Washington. I swear, this fool really did start to believe everything that was said about him.

 

[BoberFett]

I beg to differ. They have learned that if there crap shoots work they make a fortune and if they don't we will cover their losses since they are even bigger than they were before. They have also learned that they can commit blatant criminal acts and not only not go to jail but keep the illgotten gains.

We have given them incentive to continue doing the exact same stuff.

Impossible, we were promised there was no moral hazard accompanying the bailouts...

 

[dmcowen674]

JPM taking losses speculating on derivatives.

They are reporting big Mark to Mark losses today from derivative positions that are doing poorly. They also got downgraded.

Looks like JPM still playing. This is why Banks should not be playing at the craps table.

They got bailed out. Will they get bailed out again if they get hit with a liquidity crunch when they begin getting collateral calls?

Money flowing out the U.S., color me shocked






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