If you’ve wondered what investment banks have been doing with those hard earned bail-out tax dollars lent to them by the Federal Reserve and US government at nearly zero percent interest, here’s your answer and a demonstration in how to vaporize the GDP of a small nation in just a few weeks’ time.
In an unexpected after hours call with investors CEO Jamie Dimon said JPMorgan was facing massive losses – legal losses of $4.2 billion were reasonably possible, he said — with trading losses totaling $800 million in the second quarter.
And Dimon said it could take until the end of the year to restructure the portfolio.
Although information was still coming together at the time of writing, the Fast Money traders say developments look like they’re a game changer.
“I can almost guarantee it’s not just JPMorgan.” adds trader Guy Adami.
“JPMorgan looks like it’s going to bring down the entire space,” adds Steve Grasso.
In other words, all the traders are expecting financials to sell-off broadly on Friday.
“The sector hasn’t been doing well anyway,” explains Steve Grasso. “The group has been breaking down. This feels like it could be a nail in the coffin.”
Mac Slavo Views:
Read by 18,628 people Date: May 10th, 2012 Website:www.SHTFplan.com
Copyright Information: Copyright SHTFplan and Mac Slavo. This content may be freely reproduced in full or in part in digital form with full attribution to the author and a link to www.shtfplan.com. Please contact us for permission to reproduce this content in other media formats.
The content on this site is provided as general information only. The ideas expressed on this site are solely the opinions of the author(s) and do not necessarily represent the opinions of sponsors or firms affiliated with the author(s). The author may or may not have a financial interest in any company or advertiser referenced. Any action taken as a result of information, analysis, or advertisement on this site is ultimately the responsibility of the reader.
SHTFplan is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com.