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Archive for the ‘Jamie Dimon’ Category

SEC Chairwoman Mary Schapiro

May 11, 2012            8:21 a.m.

Regulators are looking into the $2-billion trading loss by JPMorgan Chase & Co., the head of the Securities and Exchange Commission said Friday as lawmakers and analysts said the bank’s revelation would increase pressure for tighter financial rules.

“I think it’s safe to say that all the regulators are focused on this,” SEC Chairwoman Mary Schapiro told reporters after a speech at a Washington conference, according to news reports. She would not comment further.

The Federal Reserve and Britain’s banking regulator learned of the trading loss last month and have been in discussions with JPMorgan Chase about it, the New York Times reported Friday.

The huge loss from a trading portfolio intended to help the bank manage credit risk comes as JPMorgan Chase Chief Executive Jamie Dimon has helped lead the charge against tougher financial rules being drafted by regulators.

The news could lead regulators to resist efforts to soften the so-called Volcker Rule, a key provision in the 2010 Wall Street reform law. The rule, still being finalized, would limit trading by banks for their own accounts.

“This regrettable news from JPMorgan Chase obviously goes counter to the bank’s narrative blaming excessive regulation for the woes of financial institutions,” said Rep. Barney Frank (D-Mass.), one of the lead authors of the law.

“The argument that financial institutions do not need the new rules to help them avoid the irresponsible actions that led to the crisis of 2008 is at least $2 billion harder to make today,” he continued.

Frank noted a recent estimate by JPMorgan Chase that complying with new regulations would cost the bank $400 million to $600 million.

“In other words, JPMorgan Chase, entirely without any help from the government has lost, in this one set of transactions, five times the amount they claim financial regulation is costing them,” Frank said.

An Obama administration official, who was not authorized to speak publicly about the issue, said JPMorgan’s trading loss underscored the need to keep pushing to implement the new regulations in the financial reform law.

Dennis Kelleher, president of Better Markets, a nonpartisan group advocating financial reform, said a strong Volcker Rule is needed to limit risky bets by large banks.

“Jamie Dimon and JPMorgan Chase just proved what anyone not getting a paycheck from a Wall Street bank already knows: gigantic too-big-to-fail banks are too big to manage,” Kelleher said. “They must not be allowed to continue to threaten our financial system and our economy.”

Many lawmakers have been pushing for legislation to break up huge financial institutions, and the $2-billion hit taken by JPMorgan Chase, the largest U.S. bank by assets, is likely to add fuel to that push.

On Wednesday, Sen. Sherrod Brown (D-Ohio), introduced a bill to limit the size of U.S. banks. And last week, Rep. Brad Sherman (D-Calif.), introduced the Too Big to Fail, Too Big to Exist Act, which would force the breakup of banks whose failure could threaten the economy.

from:  http://www.latimes.com/business/money/la-fi-mo-sec-jpmorgan-chase-regulators-20120511,0,3897661.story

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Mary Schapiro was born on June 19th, 1955 according to http://en.wikipedia.org/wiki/Mary_Schapiro

June 19th, 1955

6 + 19 +1+9+5+5 = 45 = her life lesson = what she is here to learn = Powerful.  Intense.  Focused.  Investigating.  Secrets.  Things can go horribly wrong.

Five of Cups Tarot card

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June 19th, 1955

June 19th

6 + 19 +2+0+1+1 = 29 = her personal year (from June 19th, 2011 to June 18th, 2012) = Barack Obama.  Competence.  Teamwork.  Cooperation.  Joining forces.

 

[Numerologically a person’s life lesson number stands for themself.  Barack Obama was born on August 4th, 1961.

August 4th, 1961

8 + 4 +1+9+6+1 = 29 = his life lesson number

File:Official portrait of Barack Obama.jpg

That it is her 29 year indicates that Barack Obama (whose life lesson number is 29) is potentially of significance to her between June 19th, 2011 and June 18th, 2012.]

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comprehensive summary and list of predictions for 2012:

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JPMorgan Chase discloses $2-billion trading loss

May 10, 2012, 5:56 p.m.

Barely four years after Wall Street’s wrong-way bets plunged the world into a financial crisis, JPMorgan Chase & Co. admitted it lost $2 billion from a trading portfolio that was supposed to have helped the bank manage credit risk.”These were egregious mistakes,” said Chief Executive Jamie Dimon, who is considered one of the world’s savviest bankers. “We have egg on our face, and we deserve any criticism we get.”

The announcement stunned the financial industry, in part because it came from such a highly regarded bank. Dimon had navigated JPMorgan through the crisis in good shape by clamping down on some of the excessive risks that torpedoed rivals.

Dimon told analysts that the bank racked up $2 billion in trading losses during the last six weeks, and that could “easily get worse.” He said JPMorgan could suffer an additional $1-billion loss from the portfolio during the second quarter.

“My jaw is on the table,” said Nancy Bush of SNL Financial. “I never expected this right now — not in a million years.”

The losses stemmed from derivative bets that backfired in the company’s Chief Investment Office. This part of the bank was in charge of trading to balance the company’s assets and liabilities, although it had been criticized by some analysts for operating more like a hedge fund.

There had been media reports that a single JPMorgan trader in Europe, known in the bond market as “the London whale,” was making massive bets that were influencing prices in the $10-trillion market.

Investors bailed out of JPMorgan stock in after-hours trading, a sign it will open sharply lower in New York on Friday. The stock fell 6%, and rivals such as Citigroup Inc.Wells Fargo & Co., andBank of America Corp. also posted modest declines.

The blowup at the nation’s largest bank came amid a heated debate in Congress over how much regulation is needed to rein in the risk-taking that caused the near-meltdown of the financial system in 2008.

The crux of the argument had been whether the so-called Volcker rule, which limits how much federally insured banks can risk in trading for their own accounts, had gone too far.

Indeed, Dimon acknowledged that the trading losses might lead to more calls for stronger banking regulations.

“It’s very unfortunate, plays right into all the hands of a bunch of pundits out there, but that’s life and I’ll have to deal with that,” he said.

Critics of Wall Street lost no time in calling for regulators to proceed with cracking down on big banks such as JPMorgan, which began the year with $863 billion in federally insured domestic deposits.

“The enormous loss JPMorgan announced is just the latest evidence that what banks call ‘hedges’ are often risky bets that so-called ‘too big to fail’ banks have no business making,” U.S. Sen. Carl Levin (D-Mich.) said in a statement.

This “is a stark reminder of the need for regulators to establish tough, effective standards to protect taxpayers from having to cover such high-risk bets,” he said.

Bank lobbyists had argued that the biggest U.S. banks need more flexibility if they are to compete against global financial giants. But the latest debacle provided new fodder for critics.

At a minimum, JPMorgan’s admission shows that large and unforeseen losses can erupt at any time despite the banks’ efforts to limit risk-taking.

“It demonstrates that even at an institution like JPMorgan, which has done a remarkable job at staying out of trouble compared to other banks, a bolt out of the blue can come at any time,” said Anthony Sabino, a law professor at St. John’s University in New York.

The problems at JPMorgan stem from the trading of synthetic credit products, which are derivatives whose values are tied to a portfolio of underlying bonds. The bank lost money when it was trying to unwind these exotic instruments, which were originally intended to hedge JPMorgan’s credit exposure.

Dimon said that the investments’ extreme volatility could continue to roil JPMorgan for months to come.
He previously had dismissed reports of an out-of-control trader in London as “a tempest in a teapot,” Bush said. “How do you go so fast from a tempest in a teapot to a $2-billion loss and maybe more?””There’s something here we’re not being told,” Bush said.

She recalled a series of debacles in the 1990s involving rogue traders such as Nick Leeson, who hid losses that eventually totaled $1.3 billion, wiping out the reserves and capital at England’s august Barings Bank.

Credit Agricole securities analyst Mike Mayo asked if the failure of Dimon’s main risk-avoidance unit might foreshadow similar problems at other banks.

Dimon demurred on speaking for the industry.

“Just because we’re stupid doesn’t mean anyone else was,” he said.
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Jamie Dimon was born on March 13th, 1956 according to http://en.wikipedia.org/wiki/Jamie_Dimon

March 13th, 1956

March 13th

3 + 13 +2+0+1+2 = 21 = his personal year (from March 13th, 2012 to March 12th, 2013) = Seeing the big picture.  On the world stage.  For all the world to see.  To err is human.

21 year + 5 (May) = 26 = his personal month (from May 13th, 2012 to June 12th, 2012) = In the news.  Making headlines.

Page of Wands Tarot card

26 month + 15 (15th of the month on Tuesday May 15th, 2012) = 41 = his personal day = Things get ugly.

Ace of Cups Tarot card

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comprehensive summary and list of predictions for 2012:

http://predictionsyear2012.com/

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discover some of your own numerology for FREE at:

http://numerologybasics.com/

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—————————————————————————————–

learn numerology from numerologist to the world, Ed Peterson:

https://www.createspace.com/3411561

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Sex Numerology available at:

https://www.createspace.com/3802937

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