JP Morgan: At Least $28 Billion in Losses Since “London Whale”
The nation’s biggest bank by assets, JP morgan, has lost more than $22 billion in shareholder value and $28 billion in market value since the London Whale was made public in April 2012 according to Bloomberg. Much reported and demonstrative of just how well the TBTF CEO’s up-on-high have it, Dimon originally called the reports of a London Whale a “tempest in a teapot,” but had to go back on that phrase as the firm reported a 2$ billion loss a month later. For some, not enough quarters for laundry is a tempest in a teapot, let alone a loss of money unimaginably in excess of their lifetime earnings down in the basement. Since the loss, JP Morgan has grown accustomed to regulatory and legal proceedings on numerous fronts. Perhaps this is Washington’s way of breaking the stubborn Jamie Dimon into the incoming new maze of Soviet styled regulation the once touted risk manager fears so totally?
“As always, the company has fully cooperated with all regulatory and governmental requests around this matter,” Joe Evangelisti of JP Morgan said of recent Senate investigations regarding the London losses. You see, an MO seems to be developing over at JP Morgan. Operate with flagrant disregard of law and ethics, and then cooperate completely with the authorities thereafter. “Our smug smiles and celebredom will do the rest in the face of public servants,” says TBTF while uttering in a whisper of stale, reptile breath: “Do more than scrape us, and we will pull the plug.” On the economy, of course, TBTF means.
According to former JP Morgan CEO William B. Harrison, investors overreacted to the bank’s $5.8 billion trading loss. He also said current CEO Jamie Dimon is doing a “great” job. His smiles and winks and nods are really winning over the Senate aides.
“It was disappointing to all of us that we had that kind of loss, but the important thing is to put it into perspective, which the market didn’t do very well,” Harrison said on CNBC. “A lot of people overreacted to it…JPMorgan came through the financial crisis as we all know without making a significant mistake,” Harrison said. “It’s extraordinary that Jamie and team were able to manage it that way.”
Presumably, Harrison would consider Jim Willie’s reports that the originally $2 billion dollar loss would escalate into a nearly $20 billion loss an overreaction, despite the prediction having since rung true. Spirit shine can render one blind, after all.
No matter what Harrison says and/or chooses to believe, investors are jumping ship as the firm becomes the negative center of attention in the finance world, and Main Street begins to internalize JP Morgue as the same as the rest of the financials: trash to be taken out. Basically, there is less risk and better investments elsewhere. How much of that $22 billion will find its way into the correlated silver market, in which JP Morgan is mired in charges of silver manipulation? The small silver market won’t need much to enjoy continued support as its price moves beyond $32. How much will find its way into the gold market?
A lot of these shareholders consider the mission of JP Morgan to enrich themselves while carrying an affordable dose of risk. After all, JP Morgan is being investigated by more than eleven regulatory agencies at the state, national and federal level. That sounds like a lot of risk for a stock that is 20% off from its high. JP Morgan is carrying the weight of Wall Street on its shoulders now, as the US mainstream press lays into the company over its litany of legal proceedings. Who knows wherefore? The strategy might merely be enabling the agents over Goldman Sachs to consolidate Europe more effectively for Wall Street.