Menu Close

What Did JP Morgan Get Itself Into? |

JP Morgan’s chief investment office earned $5 billion over the past three years. Today, the New York Times reports an estimated loss on the “London Whale” trade of $3 billion…

…That’s scary enough. But if you really want Fright Night-type chills, consider this: no one knows how much JP Morgan could still lose, because no one knows how much JP Morgan has at stake.

The New York Times has a smart, incisive story with many good details this morning. But the most eye-catching detail – that the bank has lost $1 billion in just four trading days – is probably just a guess at the true paper loss, even if the source is very close to the trade. That’s reflective of the current state of confusion even among the experts right now…

As a credit hedge fund manager noted to me this morning, no one in the market  knows the actual amounts JP Morgan has at stake. That makes it impossible to know, with even vague reliability, how deep the bank is in the hole.

via What Did JP Morgan Get Itself Into? |

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Follow by Email