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HomeSEC Settles with JP Morgan/Bear Stearns: Crime Pays . . . . . . . . . . (“Why I Left Bear Stearns”) . . . . . . . . . . .
Posted by Larry Doyle on November 16th, 2012 8:29 PM |
This evening I feel the need to take a shower after having just read the most despicable settlement yet rendered by the SEC. In fact, having just read this settlement, I am embarrassed to be a citizen of a nation with such little moral fiber as to let what is a blatant criminal act go properly unpunished. This is a sad day in America. I do not write that for simple effect.
I write that because I believe a settlement this afternoon between the SEC and JP Morgan/Bear Stearns closes the door on perhaps the single most egregious criminal act I have yet come across while writing this blog. (more…)
How Bear Stearns Really Screwed Investors
Posted by Larry Doyle on November 12th, 2012 8:57 AM |
The Wall Street Journal reports this morning that JP Morgan will merely pay a fine for transgressions that occurred at Bear Stearns prior to the large money-center bank’s life-saving takeover of the former Wall Street broker.
With merely a fine to be paid, global investors and American taxpayers are once again left scratching their heads wondering if the transgressions involved happened without any sort of meaningful human involvement. I mean, how is that JP Morgan will pay a fine likely in the hundreds of millions of dollars and not one single individual is likely to face the music? More on that in a second. What today’s WSJ report and many other reports fail to identify is what really happened at Bear Stearns. Let’s navigate.
Investors got screwed by the actions at Bear Stearns in two ways: (more…)
JP Morgan: 9B Loss? Is That It? A Hedge? Really?
Posted by Larry Doyle on June 28th, 2012 7:34 AM |
On May 10th, JP Morgan CEO announced that the bank faced a $2 billion loss on a hedge that had gone awry in its Chief Investment Office.
Many analysts and commentators discounted the fact that for an institution of JP Morgan’s size a surprising $2 billion loss, while significant, was not overly significant.
Perhaps they were right. If a $2 billion loss is insignificant, then what about an $8-9 billion loss. Significant yet? (more…)
JP Morgan’s Five P’s and Bernie Madoff
Posted by Larry Doyle on June 27th, 2012 7:59 AM |
Have you ever had an experience while reading something when you stop and think, “They didn’t just say that, did they?” I had just such an experience yesterday while reading a Bloomberg commentary on JP Morgan.
Under the heading of “You cannot make this stuff up,” I virtually gagged when I read of why JP Morgan had chosen not to allocate credit to Chesapeake Energy. Given current issues with Chesapeake, it would appear that JP Morgan’s decision not to engage Chesapeake was prudent. Then why the gag? (more…)
Barofsky Slams Dimon/Washington: “Still a Cover Up”
Posted by Larry Doyle on June 14th, 2012 9:30 AM |
Not that there was ever any real doubt as to the cozy relationship between OUR elected officials in Washington and THEIR partners on Wall Street, but yesterday’s Senate testimony and questioning of JP Morgan CEO Jamie Dimon added another nail in the coffin of those in America who care for real truth and total transparency.
As CEO of JP Morgan Chase, Dimon’s job is to protect the interests of his shareholders. He was successful on that front yesterday.
As United States Senators, our elected representatives’ job is to protect the interests of American citizens. They failed miserably yesterday. (more…)
High, Hard Heat for JP Morgan’s Jamie Dimon
Posted by Larry Doyle on June 13th, 2012 9:25 AM |
Most eyes on Wall Street will be fixated this morning on JP Morgan CEO Jamie Dimon as he provides Congressional testimony and faces questioning atop Capitol Hill.
Wall Street banks may be too big to fail, too big to manage properly, and too big to understand for most financial executives.
Jamie Dimon is unlike most financial executives.
Having worked at JP Morgan Chase for six years early last decade, I personally witnessed Dimon’s amazing level of detailed insight and analysis on more than one occasion. Do not think for a second that he was not fully aware of each and every exposure within JPM’s chief investment office. Impossible you think? (more…)
JP Morgan’s Irv Goldman Thrown “Under the Bus”
Posted by Larry Doyle on May 21st, 2012 7:42 AM |
I first heard the phrase “he got thrown under the bus” when working at Union Bank of Switzerland in 1997.
Perhaps I was not listening carefully enough earlier in my career to detect just how management on Wall Street conveniently finds scapegoats during challenging times. I hated that phrase then and throughout my time on Wall Street. Why? (more…)
JP Morgan and Jamie Dimon: A Question of Trust
Posted by Larry Doyle on May 18th, 2012 7:33 AM |
Do you engage in business with people you don’t trust?
Sometimes you may have no choice, but in doing so you likely keep your guard up or exact a higher risk premium.
For those with a choice, keeping one’s distance from those you do not fully trust is typically the preferred path. For those without a choice, a lack of trust is often offset with a lot of hope and prayers. Hope always remains a lousy hedge against a lack of trust. We see this at play currently on both sides of the pond. (more…)
JP Morgan’s Concentration Risk and Outsized Egos
Posted by Larry Doyle on May 15th, 2012 8:38 AM |
How does one firm “lose” $2 billion…and likely more….in the course of less than two months?
Well, it is doable if there is a massive market move. In the case of JP Morgan and the loss it announced last week, though, the markets broadly speaking had not moved that significantly. Certainly nothing like we experienced during the middle of 2011, let alone 2008. So the question begs, how does a firm lose that amount of money?
Concentration risk combined with another factor. What might that be? Let’s navigate. (more…)
Bloomberg Bombshells re: JP Morgan $2B Loss
Posted by Larry Doyle on May 14th, 2012 7:54 AM |
Bloomberg just reported a couple of bombshells which, when digested, strike right at the integrity and veracity of JP Morgan CEO Jamie Dimon’s comments a month ago.
What did Bloomberg report?
The JPM traders managing the risk within this portfolio were known to execute trades over the course of the last few days of the month. Why is that so interesting and important?
If the firm had such large and unwieldy positions, this end of month trading activity would likely be seen as an indication that JP Morgan was trying to influence the month end pricing valuations of the indices in question. Those pricing valuations would obviously directly correlate with reported profits and losses. (more…)
