Wherever you choose to "park" your money is your business. In view of the $2 billion blow up at JP Morgan Chase, JPM, you have to wonder how that will affect your bank.
Remember what Jamie Dimon, CEO of JPM, said a year ago:
"We maintained our fortress balance sheet, ending the second quarter with a Basel I Tier 1 Common ratio of 10.1%. Our strong and growing capital base enabled us to buy back $3.5 billion of stock during the second quarter, and we will continue to buy back stock opportunistically."
About a month ago, when Bloomberg TV broke the news that a whale trader at JP Morgan Chase was building up huge positions in credit derivatives, Jamie Dimon brushed off Bloomberg reporting as "tempest in a teapot".
Well, last night, May 10, Jamie apparently regretted what he said. The tempest is no longer in the teapot. In early morning pre-market trade, JPM is down -3.42. In reporting the huge $2 billion losses in their synthetic credit portfolio, he said, "There were many errors, sloppiness and bad judgement made." Who knows by the time the position is unwound, how much the actual loss will be.
Fortress balance sheet, Jamie?
Remember what Jamie Dimon, CEO of JPM, said a year ago:
"We maintained our fortress balance sheet, ending the second quarter with a Basel I Tier 1 Common ratio of 10.1%. Our strong and growing capital base enabled us to buy back $3.5 billion of stock during the second quarter, and we will continue to buy back stock opportunistically."
About a month ago, when Bloomberg TV broke the news that a whale trader at JP Morgan Chase was building up huge positions in credit derivatives, Jamie Dimon brushed off Bloomberg reporting as "tempest in a teapot".
Well, last night, May 10, Jamie apparently regretted what he said. The tempest is no longer in the teapot. In early morning pre-market trade, JPM is down -3.42. In reporting the huge $2 billion losses in their synthetic credit portfolio, he said, "There were many errors, sloppiness and bad judgement made." Who knows by the time the position is unwound, how much the actual loss will be.
Fortress balance sheet, Jamie?
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