Sunday, May 20, 2012

JP Morgan is not infallible, loses $2 BILLION!

JP Morgan:
  • Is the world’s largest publicly-traded company
  • Is the largest bank in the U.S. … the biggest of the too big to fail banks which are killing the American economy
  • Is the largest derivatives dealer in the world (and see this), and derivatives are inherently destabilizing for the economy
  • Essentially wrote the faux “reform” legislation for derivatives, which did nothing to decrease risk, and killed any chance of real reform
  • Is the creator of credit default swaps – which caused the 2008 financial crisis, and is the asset class which blew up and caused the loss
  • Has had large potential exposures to credit default swap losses for years
  • Has replaced the chief investment officer who made the risky bets with a trader who worked at Long Term Capital Management … which committed suicide by making risky bets
  • Went completely insolvent in the 1980s
  • … and again in 2007 ( and was saved both times by the government at taxpayer expense)
  • Heads – with Goldman Sachs – the Treasury Borrowing Advisory Committee, which helps set government financial policy
  • Has a reputation of being the most risk-averse of the big Wall Street players
  • Was kept alive by a huge government bailout … but used the money to invest in India and other projects which won’t really help Americans
  • Has made a killing by kicking companies (and see this) and governments (and here) when they are down, engaging in various types of fraud (update), allegedly manipulating the silver market, and profiting on misery by acting as the largest processor of food stamps in America
See the full article here

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