Does anyone still remember JPM's 'London Whale' Iksil from last April-May 2012?
- The 'maybe' it'll cost a couple billion mistake?
I remember doing the math at the time, and even then the real number looked a lot more like $5 billion than the two being claimed, and since then JPM has actually said that at most $10 billion was at risk from the London CIO portfolio (many 'missed' that, but since FTV hasn't really reported on it that's understandable).
- Here's something very few others have figured out: Iksil's $10 billion risk has already become a $100 billion exposure (JPM sold CDS protection from 2013-2017 betting the economy wouldn't get worse over the next four years) and Bloomberg is saying that JPM's illiquid derivatives could run $350 billion. Ooooops! That would certainly explain Ina Drew's departure/firing from JPM's London CIO better than a few billion dollar loss would.
These 'bum' positions are not unwound/closed, and these leveraged speculative bets could result in losses for JPM that exceed their assets.
Uncle Warren Buffet's financial weapons of mass destruction are ticking underneath JPM right now...
No comments:
Post a Comment