Skip to content




JP Morgan’s ‘Egregious’ Error

When you are the most respected bank remaining in the United States, you tend to shy away from words like “egregious” when talking about your business.  Actually, everyone who has made a mistake tends to shy away from the word.  JP Morgan’s Jamie Dimon did not falter from using it in describing their mistake as:

one we put in the egregious category and I understand fully why you or anybody else will question us generally.

The firm is describing the losses as $2B that have occurred in the last 6 weeks.  They are also comically calling the rogue program a “hedge“.  The interesting part will be what happens going forward:

There is going to be a lot of volatility here and it could easily get worse this quarter – or better, but could easily get worse – and the next quarter we also think we have a lot of volatility.

This is blood in the water (street) and there will surely be sharks circling and trying to make the most of the predicament.  Jamie Dimon profited from the explosion of amaranth and many others, maybe Ken Griffin will profit from Jamie Dimon’s stalwart JP Morgan.

Read FT’s summary of the debacle here.

Posted in Markets, Media.

Tagged with , , .



Copyright © 2009-2013 SurlyTrader DISCLAIMER The commentary on this blog is not meant to be taken as an investment advice. The author is not a registered investment adviser. There is no substitute for your own due diligence. Please be aware that investing is inherently a risky business and if you chose to follow any of the advice on this site, then you are accepting the risks associated with that investment. The Author may have also taken positions in the stocks or investments that are being discussed and the author may change his position at any time without warning.

Yellow Pages for USA and Canada SurlyTrader - Blogged

ypblogs.com