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Here Comes The Scramble For Capital: JPM To Raise $4 Billion
Even as JPM Jamie was crowing earlier about how great JPM's feces smell, and how the future is so bright, he's gotta wear Dimonshades, a little yet very important headline hit Bloomberg. To wit:
BN *JPMORGAN $1.25 BLN 30-YR DEBT MAY PAY 165 BASIS-POINT SPREAD
BN *JPMORGAN $2.75 BLN 10-YR DEBT MAY PAY 180 BASIS-POINT SPREAD
Oops.
Is JPM, with its massive cash trove, suddenly a little more nervous about the teeny, weeny foreclosure problem? Furthermore, with JPM seeing $4.35 billion in TLGP maturities on December 1 and 2, which are paying ridiculously low taxpayer-subsidized rates, just how big will the cash crunch to JPM suddenly be? And all this avoids the fact that JPM's overly optimistic NPL charge off projections will have to be revised dramatically higher as shadow foreclosures, ironically, suddenly surge, and remain in suspended animation until the "moratorium" is lifted, only to flood all over the banks and their fraudulent and massively mismarked balance sheets, like a pent up tsunami, once the next foreclosure wave is released.
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*JPMORGAN $1.25 BLN 30-YR DEBT MAY PAY 165 BASIS-POINT SPREAD
"A fool and his money are soon parted..."
One would think that competent managers would see that this is not the time to be paying multi-billions in bonuses.
Would 4B be enough to cover the loss on their naked silver bets?
Capitalism, Socialism, and Democracy, Joseph Schumpeter (1942)
Shawn A. Mesaros, Pamria, LLC
JPMorgan's toilet paper mache fortress balance sheet (pronounced shit). An arrogant ass and his job are soon parted.
in need of money to short something??
He's in denial. Admit Dimon into ZERO HEDGE HOUSE.
Whether he suffers from Crack Spread overload or Yellow Cake Arb we will not rest until we dry him out.
Oh, no! JPM got a margin call on those silver shorts, too? Gotta cover 'em at some point, boys.
JPM has HUGE shorts on silver and they are on the wrong side of the trade by a very high dollar value. Fuck 'em, couldn't happen to a better bunch of scam artists and market manipulators!
Can't wait to see how they transfer those losses to the taxpayers and shareholders. But their bonuses are a lock, so its all good.
I could spray my unadulterated vulgar venom regarding how I feel about these #uckers and their class, but it's the time of day that children may be looking over your shoulders, so I won't.
Just #uck them all. #uck every last one of them.
The Gold/Silver ratio is now at 56. Something is happening regarding silver. Any clown that thinks Gold & Silver are in a bubble are in for a rude awakening. When the bubble pops (the USD tsunami of free cash piled into the bond market), there will be a rush of money INTO the PMs like we've never seen before. PMs are not in a bubble, they will be the recipient of the bubble.
Now back to cursing these #uckers...
yeah i luvin this...
fuck a banker and his debt coupon currency....
man our "Gentleman's money" is kicking they ass...
Web bot, you are correct; here's the evidence of the increasing appetite for gold over US treasuries:
http://jsmineset.com/wp-content/uploads/2010/10/Gold-Bond-ratio-10-13-2010.pdf
Bernanke has sown the seeds of his destruction & his minion banks; be patient & enjoy the show. Watch for defaults on JPM's futures contracts. Jamie will "burn bright" someday.
Thanks for the chart. Here's more of my sock puppet thinking...
Make no mistake about it. The end game is hyperinflation and a collapse of the USD. Despite that pesky problem of social unrest for a bit, it will allow the US to emerge literally debt free (inflation destroys the value of debt) and to be in a position to somwaht retain its level of global strength and influence.
Don't think for a moment the US Gov't has not already run these scenarios. It's the only way to get out of this $13,500,000,000,000.00 debt (or if you like, unfunded liability of $23,000,000,000,000.00). Ya - just stare at those #uckin zeros until your stomach starts to get a sick feeling.
ain't that a bitch.....lol
Come on out so daddy can see you!!!
Ritholtz has a must read article at: http://bit.ly/cWEtFp Here are just two excerpts that tell me this is going to get ugly and fast:
Then the article ends off with:
My Conclusion - In short, there is no wand for the Feds to waive.
As such, I don’t see how Wall Street can get out of this mess. Home owners are not going to make their payments until they can figure out who to pay, while investors (who are no doubt salivating at a chance to get at Wall Street) will be filing suits against trustees.
Check mate. Hold on to your hats, I think this is going to get really ugly. With no wand for the Feds to waive it will be long and ugly.
Regards,
George ... The Greek ... From Canada
Bank Holiday
OR
War
OR
False Flag Continental US Nuke or CBW Strike
There's three buwwets in the gun, Elmer, you spin and shoot, we'll just be over there.
.....a short while later...
We didn't say "Elmer, fan the trigger!" Oh holy shit!
Both CNBC and Bloomberg have had guests on today that appropriately reference this as a problem for ALL titles (and not just foreclosures). Statements like "clouded title on all homes" and "no one might be able to convey their title" are starting to make it into the MSM.
Can't put this genie back in the bottle...
By the way, I'm not a fixed income guy, but those seem like wide spreads to UST's. Some of the industrial names borrow for a lot less, yea?
The MSM is getting all over this mess. The bloggers who put on the heat should get some serious credit one day.
No wand for the Feds to wave? Damn! Here comes the Federal Uniform Foreclosure Act. Sounds like they are already laying the groundwork with scare stories about everyone's title being cloudy.
Everyones titles will only be clouded if scaMERS is allowed to persist.
Nothing good for anyone, will come from this clusterfuck...
On the contrary, Federal RICO statutes and other conspiracy-related statutes would do just fine here. And don't toss out the Interstate Commerce Clause--it has been used, and misused, of late, for so many evil purposes (e.g., Obamacare), that finally a proper use would provide some well-deserved relief on the part of the public, and reassure them that the rule of law has not been utterly abandoned in this country, yet.
Of course, there is still the lame duck session of Congress...
"Bear Stearns is fine!"
http://www.youtube.com/watch?v=gUkbdjetlY8
Yeah, we've seen this before.
Oh ok, why don't I give Dimon some money he can pay himself in bonus in a few days time? What could possibly go wrong?
"Who's got the Smallest TIPS"?
That's easy, Jamie Lee Curtis...
He who suffer from crack spread, ....
Seems like they just need to raise a little cash for year-end bonuses and a bigger Holiday Extravaganza.
Hey Harry, are you buying this dip in SIZE???
Nope. Hanging on to my metals and watching AAPL closely. IMO, it needs to turn for the market to really take a shit. Ready to push a short on it once it starts breaking down. It will - just some patience required.
yeah but we still have a little pomo pumping to do tomorrow and Monday...
Yep. Better known as QE2.
I think we're up to POMO 1.3, not QE2 'til Ben says so. Tyler?
I'm really beginning to think POMO is QE2 and it will continue for quite some time. Kind of goes on in the background without upsetting anyone. Covert easing, you might say.
Your truthiness factor is high today. What's up with that?
Fear can do that to me sometimes.
Agreed. Frustrates me that any upcoming QE isn't called QE3. Just like how the Bush stimulus checks aren't counted in the stimulus numerology...
QE2=(TBTF loss exposure)N+1 where N=Helicopter Ben's Printing Presses (Sorry, supersript for N+1 is not working)
The Fed reversed the plan to deleverage its balance sheet of MBS in late July/early August. Do any of the regular ZH readers believe that wasn't a function of foreknowledge of the foreclosure crimes now coming to light?
A hint for the newb's, your county recorder's office is located somewhere within driving distance of you. It's difficult (but not impossible) to control this at a national level when the tens of thousands of transactional locations for all real estate are so close to the 100,000,000 plus households affected by these MBS.
Barliman
Bernanke.Loop(){
do while(Unemployment.Current > Unemployment.Prev && Helicopter.Fuel == "Full") {
Pump.The.Equities++; Curve.Flattener++; Silently.Panic.About.Gold++;
Collect.Massive.Paycheck * 10^100; Everything.Fine.Index == "MAXIMUM DENIABILITY";
}
}
How much of theat masive cash trove is over seas??? They can;t really touch that money without payuing HUGE taxes on it.....
That's why they are borrowing?
Good memory. I seem to have one or two synapses that are trying desperately to reconnect on this... something in my memory somewhere about this subject... borrowing at specific times versus pulling from offshore due to taxation.
And that was the good bank.
Don't all these banks have a bozillion dollars in "excess reserves"?
Yes and no. Yes on reserves...no on bozillions. Since their reserves are measured in collapsing dollars and rotting houses, it is more like on tenth of a gajillion.
The perfect storm.....
here comes the end of the horrible day, no big deal, Financials ramp. A little one at least. Something to build on for tomorrow.
Something for the talking heads to tell us how great the price action was and the obligatory "people want into this market for fear of missing the run, blah, blah, blah".
Same dialogue, different day.
Sure enough. The DOW almost went green right at the close. Fucking 3:30 ramp job. We'll see how things get cooked up overnight...
Closed below the 10 day EMA with huge volume. I'm stalking it short......
Debt Mongers never seem to get enough Debt.
Jamie sayz: "Get us some more Leverage..."
Is there a run on the banks yet?
Here comes the end of day ramp job...Robots are busy...RISK ON!!!!
When do we hear the obligatory "finished well of its low" spin?
4 POMOs in the next 6 days - Ramp for sure!
BONUS TIME!!
http://www.youtube.com/watch?v=eRBOgtp0Hac
No problemo, Mark to Millardmark accounting in full force.
I remember why the market is rallying now at the end of the day. POMOs are coming-2 in a row Friday and Monday and then also Wednesay and Friday again.
Not to worry. FASB is currently working on amending the balance sheet definitions of capital. A surprising change is the ability for a firm to claim world landmarks and fictitious entities as assets. Wells Fargo can properly value their stake in the planet Krypton for $86.5 billion. JP Morgan's non-voting shares in Wonka Industries will have an approximate value of $54 billion.
And whilst the meso-American City of Gold is going through (disputed) fauxclosure precedings, we can of course 3D-print as many unicorns as it takes to restore employment levels to an entirely acceptable <1% of the available workforce.
bogus fraudulent accounting is eventually exposed by CASH FLOW falling shorts. Lousy business models eventually run out of money, and have to "raise capital", and in this case it is covering shortfalls and not for productive investment. Burning cash, yet very profitable, what a joke.
A few months ago I bought puts on GS and JPM.
They died and went to trash. I couldn't sell them anymore.
Today, it's like they all woke up again! :)
ALIVE!!!! THEY ARE ALIVE!!!!
Give it 6mo and everyone who was trying to short the UST 'bubble' will be having a similar experience.
*`WE WISH WE HADN'T DONE' <diddled our NPL provisions> AS ECONOMY FADED: JPM CEO DIMON
July 14th...
Let them eat cake...
http://bobshouseofvideogames.com/2010/10/12/funny-video-game-photos-the-...
Why the hell are them retards doing more borrowing when they could simply pull that money out of the bonus pool?
The 'talent' is not going to leave (and even if they did, this would cut down on severance costs!).
That's some sacrilege, right there. Ixnay on the onuspoolbay! A black helicopter will see you shortly.
This is the ELEPHANT in the room.
J.P. Morgan new 10-years breaking wider. Very bad sign. +184 right now vs. +180 as priced.
Not to worry. With GOOG up $50 and S&P taking out 1200 (while we get yet another bitch of a short squeeze), this story will get shoved to the backburner pretty quickly.
It's not just ForclosureGate losses which are vexing JPM:
UPDATE:
Rumors persist that the JP Morgan Queen of Silver Derivatives, Blythe Masters, is in high stress mode because her commodity book is blowing up.
Wouldn't you be a little stressed if your 150M oz COMEX silver short position had lost over $900M in 60 days on a mark-to-market basis?! Mind you, this is ONLY their COMEX short and not all the other silver derivatives that I'm sure they call legitimate hedges.
But it sure is fun to think about how they plan to close these out these COMEX shorts as we approach the 6 month position limit implementation deadline.
Bix Weir
More updates at www.RoadtoRoota.com
PS - Bart Chilton has gone silent on me. My take, the CFTC is going to wait for the silver (and gold) rockets to take off before they put the hammer down on JPM.
True dat Bull! I've been looking around corners for Bart the Surfer-dude myself. We know he's out there somewhere, and with JP Migraine continuing their now illegal proprietary trading in the big fix, he's gotta have something up his sleeve.
I keep seeing the scene in the Untouchables where the judge reluctantly switches juries with the courtroom next door.
Go Bart!! Show us your 21st Century Elliot Ness-ness.
Hi Jamie, can you let me know which MBS my MORTGAGE DEED is in? It's ok if you don't have the paper I issued. If you don't have my paper, I'll just write checks to you and photograph them, digitize into proprietary format deposit them into my private electronic database CAPX under your name. Check the latest Basel guidelines, you can mark it as Tier 1 capital!
Love,
Tally
Deep thoughts:
1) QE 2.0 will kill JP Morgan shorts on silver
2) The banks who were rushing foreclosure to take advantage speculative capital coming from QE 2.0 in hopes of selling repo housing?
3) Could this delay QE2.0
4) Fed announces Nov 3rd that they just completed QE 2.0...surprise!
5) Market Crashes
6) Market Crashes
7) Market Crashes
Perhaps this is just an insurance policy by Silver-Jamie in case it all gets too tight for JPM.
By the time they have to fold, the money will have been syphoned out & be long gone..
Agreed. This has been building for some time, but I will promptly removed what marginal dollar assets I keep from Chase.
More massive irony. Where will the billions come from? No one has $4 billion just sitting around waiting for JPMorgan to need money. So, where will the money come from? Some Rothschild bank connected to the Fed will create the money out of thin air and lend it to JPMorgan and the incest of toilet paper credit money will continue ... and no one can figure out that all of the banks just finance each other with money created out of thin air.
This is one sick f'n financial empire ... waiting for someone to take it outof our misery!
Reply to Post::::::
by Dagny Taggart
on Thu, 10/14/2010 - 14:14
#650231
Oh, no! JPM got a margin call on those silver shorts, too? Gotta cover 'em at some point, boys.
REPLY---------------------- WOW! so silver may get more upward fuel with the JPM cover? Can the Fed somehow cover for JPM and drive silver down??
Really this is a great post from an expert and thank you very much for sharing this valuable information with us.
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