?

Log in

No account? Create an account

Assembled in the USA from 100% Chinese parts.

History

11th May 2012

1:46pm: I've been too busy to post about finance in a while...
...but this story is just a bit too good to let pass by. Apparently J.P. Morgan has somehow managed to lose at least a couple of billion dollars through some extremely questionable trades in the last few weeks.

From the FT's Alphaville blog:
In a conference call on Thursday night, CEO Jamie Dimon put mark-to-market losses at $2bn for the unit. Dimon has thus gone from calling the CIO’s trades a “a complete tempest in a teapot” to referring to the losses “plays right into the hands of a whole bunch of pundits out there”.
Other things Dimon said during the conference call:
“…Errors, sloppiness, and bad judgement.”

“Bad strategy, badly executed and poorly monitored”

“It could get worse. This could go on for a little bit.”

“Badly executed, badly monitored. I’m not going to repeat it 800 times”

“I know it was done with the intention to hedge tail risk… it was unbelievably ineffective”
Lisa Pollack of the FT has been covering the story for a few weeks now, ever since it became apparent that something funny was going on with JPMorgan's trades.

Today she appeared on Alphaville's daily Markets Live online chat, and gave this summary in answer to her colleague Bryce Elder's question, "Are we any clearer on what actually happened?"her answer, and Elder's summing up, behind the cutCollapse )
Powered by LiveJournal.com