The fallout from JP Morgan's trading loss of at least $2 billion(could be more ) has dominated the news for the past week . How could it happen? Do you really believe a loss of this magnitude could take place without the CEO knowing about it? He better implement some better "quality controls " for next time . Did anyone say "turning a blind eye"?
In today's financial world and the topsy turvy derivatives market you can(and they do ) insure against almost anything. They make sh_t up as they are going along. It wouldn't even surprise me if they bought insurance insuring themselves against this trading loss , which had effectively insured numerous hedge funds for fluctuations in values of other publicly traded stocks. Not so far-fetched, is it?
At the end of the day, Morgan will make up the loss somewhere else...Probably with each of their millions of customers absorbing a small, transparent amount in their monthly statements, ATM charges or some other innocuous place. Don't shed a tear for JP Morgan! They wouldn't for you !
And you know what ? They don't have to make good on the $2 billion plus loss until 2017 . Yes, 5 years to scheme and shift and maneuver . Spread it out over 5 years .
So let's get finished with the resignations and firings of "the sacrificial lambs ". We have other important things to get to .
Reporting, Steve "Credit Swaps " Goldman.
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