MojoMan Posted May 14, 2012 Share Posted May 14, 2012 I'm the first to admit that I'm a finance dumb@$$ so I'm hoping for a knowledgable answer. From what I've read about the JP Morgan $2B loss, I'm confused why it's a big deal. Apparently, they made $5.4B the quarter before. http://money.cnn.com/2012/05/10/news/companies/jp-morgan-losses/index.htm Why the panic? Quote Link to comment Share on other sites More sharing options...
TimC Posted May 14, 2012 Share Posted May 14, 2012 Because Wall Street is stupid in every way possible. Quote Link to comment Share on other sites More sharing options...
SheikYerbuti Posted May 14, 2012 Share Posted May 14, 2012 Ever since 2008, big banks have been under a HUGH microscope. One of the biggest fights, both on Wall Street and in Washington is the regulation vs. deregulation struggle. 2 Billion dollars, in fact, isn't a ton of money to JPM. But, to the guy in the street, and the politicians who are out to push their agenda, and the guy writing the headlines for your local paper or Yahoo News, 2 billion dollars is an eye-catching number. And this is why Jamie Dimon (JPM's CEO) is downplaying it, while so many other people are panicking over it. They're both kinda right, but coming at it from different perspectives. Quote Link to comment Share on other sites More sharing options...
matt770 Posted May 14, 2012 Share Posted May 14, 2012 One of the things that shocked me after the first big crash was the extent to which all the big banks' wagers were leveraged. I always assumed banks only invested money they actually had, silly me. Imagine if random joe dickhead could take out a $10,000 loan and tell the lender he has a good feeling about the home team this weekend, that would make about as much sense. Quote Link to comment Share on other sites More sharing options...
Avernus Posted May 15, 2012 Share Posted May 15, 2012 $2B for JPMorgan is nothing but the fact that they ever lose money on a quarterly statement is a shocker to me considering they can manipulate the market via high frequency trading....it's almost like they decided to lose... but another thing that bothers me is "why is this even news?"....the major media outlets are reporting this almost in a way that says (and one of them said this almost verbatim) "if JP Morgan can't make money in today's market, then who can?"... why even paint things in this picture in regards to the markets...especially in an election year? I really don't have an answer or direction, but these are some of my thoughts among many when I see this headline pop up left and right as of late.... the real question you should be asking is "why is this even headlining major websites and such?"....that is what bothers me.....the $2B loss for them is like a $20 loss for me....whoops there goes the money to buy Avengers on Blu-ray... Quote Link to comment Share on other sites More sharing options...
Avernus Posted May 15, 2012 Share Posted May 15, 2012 One of the things that shocked me after the first big crash was the extent to which all the big banks' wagers were leveraged. I always assumed banks only invested money they actually had, silly me. Imagine if random joe dickhead could take out a $10,000 loan and tell the lender he has a good feeling about the home team this weekend, that would make about as much sense. wait....can I do that?... or I can just put it towards a session of blackjack....I feel more confident in my blackjack game anyways.... Quote Link to comment Share on other sites More sharing options...
BeeR Posted May 15, 2012 Share Posted May 15, 2012 I thought this was gonna be about the Gong Show. Quote Link to comment Share on other sites More sharing options...
Lady.hawke Posted May 15, 2012 Share Posted May 15, 2012 Look up "Mark to Market." There you will find your answer. Quote Link to comment Share on other sites More sharing options...
Lady.hawke Posted May 15, 2012 Share Posted May 15, 2012 And as "Mark to Market" has taken trillions off of balance sheets - let's nominate weigie to explain it. If not, I surely can. Quote Link to comment Share on other sites More sharing options...
detlef Posted May 15, 2012 Share Posted May 15, 2012 And as "Mark to Market" has taken trillions off of balance sheets - let's nominate weigie to explain it. If not, I surely can. I'm going to guess weigie's version doesn't involve Obama's birth certificate? Quote Link to comment Share on other sites More sharing options...
SEC=UGA Posted May 15, 2012 Share Posted May 15, 2012 I'm the first to admit that I'm a finance dumb@$$ so I'm hoping for a knowledgable answer. Here ya go.... Look up "Mark to Market." There you will find your answer. Quote Link to comment Share on other sites More sharing options...
Avernus Posted May 22, 2012 Share Posted May 22, 2012 JPMorgan stops stock buybacks, maintains dividend http://news.yahoo.com/jpmorgan-suspends-stock-buybacks-face-loss-140252664--s... JPMorgan Chase loss only going to get worse http://money.cnn.com/2012/05/18/markets/jpmorgan-loss/ Quote Link to comment Share on other sites More sharing options...
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