By American Business News: JP Morgan (JPM) reported a $5.0 billion profit last week despite a $4.4bn loss on trades booked by the Chief Investment Office (CIO) or London Whale. No one should be fooled by the $4.4bn of securities gains, credit reserve write-backs and DVA gains. These are not a real reflection of JPM's profitability. However, if you believe that the Whale's losses represent a once off mistake, rather than a more general lowering of risk management standards at JPM, then using once off gains to offset once off losses reveals a fair reflection of underlying profitability.
Everyone is still trying to figure out who profited from the JP Morgan Chief Investment Office's $2 billion risky trade. Once hedge funders and other traders got wind of what bank's Chief Investment Office was doing, they definitely... Read Post
The details of JP Morgan's disastrous $2 billion (and counting) trading loss from its Chief Investment Office (CIO) continue to come out through various reports. The Wall Street Journal's Dan Fitzpatrick, Gregory Zuckerman, and Joan... Read Post
The saga of JP Morgan's London whale continues. New details continue to emerge regarding the JP Morgan's Chief Investment Office, which booked recently billions of dollars in losses after gigantic trades gone wrong. Those trades wer... Read Post