JPMorgan’s Bigger Exposure Comes From a Euro Breakup

By: Monday June 25, 2012 1:40 pm

Sometime in July, when they announce their earnings, we’ll find out just how much JP Morgan Chase lost on the whale trade deal – the speculation has been anywhere from $2 billion to $7 billion. But neither JPMorgan Chase nor any major US bank is insulated from a risk that is gradually growing. Simon Johnson notes today at Bloomberg that US banks have no real buffer to protect themselves from a crisis in the Eurozone


House Doing Better Job at Dimon Hearing

By: Tuesday June 19, 2012 11:40 am

The House of Representatives, in some cases on a bipartisan basis, is generally getting at the issue of JPMorgan Chase’s multi-billion dollar losses in today’s Financial Services Committee hearing with CEO Jamie Dimon. But the two stars of the show thus far were Democratic Reps. Gary Ackerman and Brad Sherman. Ackerman asked point-blank if there’s any difference between gambling and investing.

Jamie Dimon’s Cufflinks and Why a Tighter Volcker Rule Is All We Can Hope For

By: Thursday June 14, 2012 12:28 pm

So here’s me and William Cohan on yesterday’s The Alyona Show talking about that Jamie Dimon testimony yesterday. I have to admit a little shock at the focus of the coverage on the captured Congress and the relative soft pitches lobbed in Dimon’s direction.

I’m wondering what people expected. This wasn’t the Senate Permanent Subcommittee on Investigations, Carl Levin’s committee, which gave the most brutal hearing of the financial crisis to members of Goldman Sachs’ team. This is the Banking Committee. Most of its members are effectively employees of JPMorgan Chase and the other Wall Street banks. Many of its staffers are actual former employees. Many of the lobbyists of these banks are former staffers to these Senators. This is where bank-friendly Senators go to ensure the most campaign contributions. There was a moment of time after banks blew up the world’s economy where they could be expected to get a brushback from a committee like this, but that time has passed.

Reactions to Jamie Dimon’s Senate Banking Hearing: Admissions of Guilt Amid the Arrogance

By: Wednesday June 13, 2012 1:00 pm

I don’t think it was too much of a surprise that today’s hearing with Jamie Dimon was something less than stringent. Very few Senators bothered to show up with anything more than a list of questions and a pallid expression. The very structure of the hearing, with one round of five minutes of questioning, wasn’t conducive to being very meaningful. But there were still a few interesting moments.

Liveblog: Jamie Dimon Appears Before Senate Banking Committee

By: Wednesday June 13, 2012 7:14 am

The Senate Banking Committee hearing with Jamie Dimon of JPMorgan Chase is scheduled to begin at this hour. A preview of today’s proceedings, including Jamie Dimon’s written testimony, is available here. You can watch the hearing on C-SPAN. I’ll add my comments below. …well, the hearing started with a bang. Foreclosure activists screamed at Jamie [...]

Dimon to Be Contrite Yet Steadfast in Senate Banking Testimony

By: Wednesday June 13, 2012 6:45 am

JP Morgan Chase CEO Jamie Dimon faces the Senate Banking Committee in a two-hour hearing scheduled for 10am ET today. He’ll be the only witness. Keep in mind that Dimon’s JPMorgan Chase has given millions to top-ranking members of the Banking Committee, so anything more than headline-grabbing and grandstanding without a real challenge to Dimon in the wake of the Fail Whale trades would be a bit of a surprise. I discuss his released testimony here and will be covering the hearing.

JPMorgan Selling Off Tens of Billions in Securities to Cover Fail Whale Loss

By: Tuesday May 29, 2012 10:40 am

More indications today that the Fail Whale trades were far more consequential for JPMorgan Chase than anyone is making it out to be. Reuters looks at the furious sell-offs JPMorgan Chase has engaged in over the last month.

Hedge Fund Gambling: Fine, Just Keep My Tax Dollars Out of It

By: Monday May 28, 2012 2:55 pm

I don’t have problems with hedge funds per se; I object to the use of the implicit too big to fail guarantee, the Fed’s discount window, political influence, inside information, rigged rules and virtually unlimited depositor funds that go along with any trader at a bank who tries to play this game. The idea that a victory will send profits to the bank balance sheet, but a loss will simply get socialized by the government, turns the idea of risk completely on its head.

Regulator Indifference Seen at JPMorgan Chase, Ally Financial

By: Saturday May 26, 2012 10:00 am

Housing Wire reports on bank attorneys preparing for “showdowns” with the RMBS working group on fraud cases. Well, they have to justify their billings to their bosses, don’t they? The reality of whether banks should sweat the investigation is far less clear. In fact, we have more information from a couple sources today that suggest the attorneys don’t have to keep up this facade.

Museum President Sat on “Risk Committee” at JPMorgan Chase

By: Friday May 25, 2012 3:30 pm

It turns out that JPMorgan Chase had a risk oversight committee on its board of directors. There were individual risk managers at the various offices as well, but this board was designed to provide oversight for the entire operation. Or, if you prefer, it was designed to pretend to show that JPMorgan Chase cared about risk oversight. That’s clear from who they put on the board.

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