USA: Rogue traders causes $2 bn loss at Morgan/Chase

[Gentle Giant]

Some assholes never learn.

NEW YORK -- JPMorgan Chase CEO Jamie Dimon says he does not know whether the bank broke any laws in the surprise $2 billion loss by one of its trading groups.....

http://www.huffingtonpost.com/2012/0...n_1510700.html

[Central Scrutinizer]

US politicians have renewed calls for tighter financial regulation, after JPMorgan Chase bank revealed a trading loss of $2bn (£1.2bn) on Thursday.

The bank's shares plunged by almost 10% on Friday, wiping $14bn from its value.

Democrat Congressman Barney Frank said the scale of the mistakes "blows up" the argument against tighter rules.

JPMorgan boss Jamie Dimon said the losses resulted from a strategy of hedging that was supposed to protect the bank from risk.

Good move Jamie.

http://www.bbc.co.uk/news/18046848

[arrana]

Dimon says the bank was "sloppy" and "stupid" in its handling of the trades.

At least he was honest about it being sloppy and stupid....but he should be saying " I was one of the ones that was sloppy and stupid for letting it happen".

[Central Scrutinizer]

"We made a terrible, egregious mistake," Dimon said in an interview that aired Sunday on NBC's "Meet the Press." `'There's almost no excuse for it."

Yeah but apparently there is at least one little excuse for it. How about roof jumping for bankers?

http://www.huffingtonpost.com/2012/0...n_1512671.html

[Jessica]

Roof jumping sounds good to me. A few of these guys needs to be jumping from tall buildings on Wall Street. &#%&&#%#'!!!!!!

NEW YORK (AP) – JPMorgan Chase is expected to accept the resignation of one of the highest-ranking women on Wall Street after the bank lost $2 billion in a trading blunder, a person familiar with the matter said Sunday.

The bank will accept the resignation of Ina Drew, its chief investment officer, the person told The Associated Press, speaking on condition of anonymity because the person was not authorized to discuss the decision publicly.

http://www.usatoday.com/money/indust...ion/54942556/1

[Kat]

They need to start firing people from the top this time.

[Central Scrutinizer]

Ina Drew resigned. Jamie Dimon needs to be next to go.

[Shadow]

Yes, Ina Drew resigned, and she apparently walks away with a $32 million payout.

[Jessica]

Lawsuits already filed.

That didn't take long. Less than a week after JPMorgan Chase disclosed massive trading losses, investors who own bank stock have filed three different lawsuits alleging that bank officers failed to disclose information about the bad trade, which led to a sharp decline in the share price.

The shareholder suits, filed in U.S. District Court in Manhattan this week, claim that the bank misled investors ahead of its surprise announcement last Thursday that it lost $2 billion.

"The suits are going to pile up and pile up fast," said Dennis Kelleher, CEO of Better Markets, a nonprofit focused on financial reform. "It's no surprise that there are lawsuits, and there are going to be many more because in April, the CFO and CEO said that there was no risk. A 'tempest in a teapot' is what Jamie Dimon said."

Kelleher added, "And then a month later he said, 'Oops, the teapot blew up and it's going to cost you all a lot of money and we don't know what we're doing."

The first case to hit the dockets was a class action brought on Monday by Robbins Geller Rudman & Dowd, a well-known San Diego-based plaintiffs law firm, on behalf of investors who purchased JPMorgan stock between April 13 and May 11 of this year. The lawsuit alleges that JPMorgan CEO James Dimon and former Chief Investment Officer Ina R. Drew, along with others, "deceived the investing public regarding JPMorgan's business, operations and management."......

http://www.huffingtonpost.com/2012/0...l?ref=business

[Gentle Giant]

Oh this just gets better and better.

By NELSON D. SCHWARTZ and JESSICA SILVER-GREENBERG

The trading losses suffered by JPMorgan Chase have surged in recent days, surpassing the bank’s initial $2 billion estimate by at least $1 billion, according to people with knowledge of the losses.

When Jamie Dimon, JPMorgan’s chief executive, announced the losses last Thursday, he indicated they could double within the next few quarters. But that process has been compressed into four trading days as hedge funds and other investors take advantage of JPMorgan’s distress, fueling faster deterioration in the underlying credit market positions held by the bank........

http://dealbook.nytimes.com/2012/05/...e-at-least-50/