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
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.