J.P. Morgan Flags $2 Billion Trading Loss – WSJ.com

May 11, 2012 – All that Glitters is not Diamonds in $700 Trillion Derivatives Market A massive trading bet boomeranged on J.P. Morgan Chase JPM +0.25%& Co., leaving the bank with at least $2 billion in trading losses and its chief executive, James Dimon, with a rare black eye following a long run as what some called the “King of Wall Street.”

The bank, betting on a continued economic recovery with a complex web of trades tied to the values of corporate bonds, was hit hard when prices moved against it starting last month, causing losses in many of its derivatives positions. The losses occurred while J.P. Morgan tried to scale back that trade.

“This is yet another example of the need for the more than $700 trillion derivatives market to be brought into the light of financial regulation,” said Dennis Kelleher, president of Better Markets, a liberal nonprofit focused on financial reform. Follow the link for the complete story, interactive graphics, videos, comments and additional links.

The Master of Disaster

J.P. Morgan Flags $2 Billion Trading Loss – WSJ.com.

About wfoster2011

Disaster researcher and current financial and economic news and events: Accidents, economics, financial, news, nature, volcanoes, floods, earthquakes, fires; airplane, ship & train wrecks; tornadoes, mine cave-ins, hurricanes, pestilence, blizzards, storms, tzuami's, explosions, pollution, famine; heat & cold waves; nuclear accidents, drought, stampedes and general. Futures trader using high volume and open interest futures markets. Also, a financial, weather and mundane astrologer with over 30 years of experience. Three University degrees from California State University Northridge: BS - Accounting MS - Busines Administration BA - Psychology Served in the U. S. Army as an Armored Platoon Leader in the 5th Battalion, 68th Armored Regiment, 8th Infantry Division (Retired). Have published three books and 36 articles available for sale through my blog: Commodology - Secret of Soyobeans (Financial Astrology) Timing is the Key (Financial Astrology) Scum City, a fiction novel (no longer available, under contract to major publisher) Currently resident of Las Vegas, NV, USA
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3 Responses to J.P. Morgan Flags $2 Billion Trading Loss – WSJ.com

  1. --Rick says:

    Hopefully, this time the government will not divest the taxpayers of precious resources and leave J.P. Morgan Chase to dig itself out of a mess of its own making or dig themselves into bankruptcy.

    • wfoster2011 says:

      I could not agree more. “To Big to Fail” really means “To Well Connected in D.C.” to fail. The economy has a natural boom and bust cycle. We find ourselves in the contraction phase, which is necessary to “weed out” the “weak sisters” and make way for more productive, innovative and technologically superior new business entities. I guess we’ll find out how “well connected” J.P. Morgan Chase it.
      yours,
      Bill Foster

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