Here Is The Reason For JPM's Negligible Litigation Reserve: You

Tyler Durden's picture

For all those asking, there is just one little footnote that explains all you need to know why "JP Morgan is not Bank of America"...

Translation: unlike BAC, which is on the hook for billions in litigation payments and other private label exposure, the party funding the same exposure at JP Morgan is.... you (but that is "contested" by the FDIC and its former boss Sheila Bair who recently found religion, but just a little too late).

h/t Manal

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Fish Gone Bad's picture

I woke up this morning and had this gnawing sensation that I was on the hook for some piece of shit bank.  Now I know its JPM.  Fuck JP Morgan.

Stax Edwards's picture

This is why it behooves JPM to go all the way to foreclosure on deficient mortgages.  No loan workouts, no short sale, no principal reductions.  Getting paid 100 cents on the dollar for all that crap mortgage paper requires foreclosure.  FDIC guarantees it.

kaiserhoff's picture

Exactly, which is why all of this talk about principle write-offs is only bumping of gums.  Who audits this shit?  Are accounting firms the next enablers, like MBIA, the rating agencies, and AIG, too important to the ponzi to fail?

kaiserhoff's picture

DELOITTE TOUCHE,  I thought it would be someone really stinky like Price or Ernst.

I Am The Unknown Comic's picture

oh no, no, not at all.....Toilette Douche is far stinkier

eatthebanksters's picture

What neither of you realize is that the banks can make substantial principal write downs, keep people in their homes (thereby reducing the ratio of vacant homes to qualifiend buyers, ergo a reduction of supply) and actually come out ahead better finanacially than if they continue down the foreclosure path.  If you did you homework you would find this to be true.  Their big big argument is moral hazard, but I have a hard time with that one...how about the moral hazard of writing millions of shitty loans?  How about the moral hazard of selling distressed notes at 30 to 40 cents on the dollar when the people in the homes could afford a mortgage at a 60 to 70 cent on the dollar principal reduction.  Why the taxpayer is getting soaked for the difference as the banks are settling claims agains them for 5 to 10 cents on the dollar. 

hugovanderbubble's picture

-Silver Derivative Book Losses: 12.Bn$

-European Debt Exposure 15.Bn$

-CDS market completly ineffective cos Re-profiling...

 

SELL JPM

malikai's picture


-Silver Derivative Book Losses: 12.Bn$

-European Debt Exposure 15.Bn$

-CDS market completly ineffective cos Re-profiling...

Translation: JPM up 35% on FED liquidity injection.

Sudden Debt's picture

SELL JPM?!

 

WHO THE HELL BOUGHT JPM?!

 

SilverDosed's picture

Pfft, this isnt Italy, you dont actually have to own it to sell it per JPM's rules.

Cash_is_Trash's picture

The same JPM that raped the Fed's Discount Window?

The bank with the massive short positions in silver?

The ones who are snapping-up the metals warehouses around Detroit?

Naaaahhhh

Hard1's picture

WTF man!! JPM is not BAC, BAC is not Greece, Greece is not Argentina

MiningJunkie's picture

Jamie has us all "gamed" masterfully...

Slartebartfast's picture

About as "masterfully", as any two bit corner crook.  Know any of those?  I do.  They could all eat Jamie for lunch.  He's a stuffed suit dooface.

Bay of Pigs's picture

What? I don't know what you're looking at.

Legs Dimon and his firm literally have the Keys to the Castle. They are running this show.

TorchFire's picture

Same could be said for the whole Fed Reserve system, but it was previously a reality guarded by fear of discovery.  Now they simply state it in writing since we clearly are a nation of pussies.

 

I Am The Unknown Comic's picture

Put me in for Pussy Default Obligations (PDO's).  I'm sure that in my case the premium will be very high! 

yabyum's picture

JPM, If silver breaks fifty, your ass is ours!

mayhem_korner's picture

Ag pullin' another nice green fatty today.  I think we're moving toward DefCon 2 on the Panic meter.

augie's picture

+1 lol

DO WHAT HE SAAAYYY DO WHAT HE SSSAAAY!!!

Bansters-in-my- feces's picture

Die JPM......

Fucking Rockefeller goons...

Paul Thomason's picture

You have got to fucking kidding me.  

I have been involved in preparation and filing for listed companies - you can't just say 'we don't like the look of this stuff so we won't tell you about it'.

You have got to be fucking kidding me.

These guys are pond scum and should be in jail.

 

Founders Keeper's picture

[...you can't just say 'we don't like the look of this stuff so we won't tell you about it'.]---Paul Thomason

Agreed.

You'd have to be a fool to believe any of the numbers publicly released from the banks.

 

alien-IQ's picture

why it is that Chase Bank branches are not set ablaze across the nation on a daily basis will forever remain a mystery to me.

SheepDog-One's picture

Ive got a Wells Fargo 'Operation Gunrunner, Fast n Furious' branch right down the street....Im thinkin about it.

Commander Cody's picture

People think that their money is actually in there.  If they only knew the truth.

JohnG's picture

Drive by.  That's the way to do it.

 

SheepDog-One's picture

Blowhorn cheerleaders giddy with excitement and praise of JPM their puppet masters.

svc101's picture

SOP: privatize profit, socialize risk.

Cash_is_Trash's picture

As noted by Chomsky long ago.

I saw a video of him in the 80's talking about private gain and public loss.

Fruition bitchezz

SheepDog-One's picture

All is well as markets flush green basking in QE expectations, never even a hint of red, baking it in however many times over. Insanity.

Meanwhile silver is just pennies away from $40. 

I wouldnt be at all surprised to hear Bernank downplay QE today to put a whoopin on PM's.

SilverDosed's picture

+1 on the possible QE3 downplay today. The past two days have obviously been a test balloon, can easily be reversed with the right empty comments today.

r101958's picture

....or maybe a huge silver deposit found in Zimbabwe or somewhere?

viahj's picture

you certainly called that one Dog!

Bartanist's picture

Sheila now realizes that she got screwed more than just once by Jamie.

r101958's picture

'JPMorgan’s Quarterly Profit Rises 13%, to $5.4 Billion'. I guess we all know where a fairly large portion of that profit came from? Just couldn't be from taking silver down from 48 to 34.

Momauguin Joe's picture

Heard a radio ad this morning on WFAN. JPM Chase is offering cash back "rewards" for their mortgagees if they open up a Checking Account with Chase. Up to $500 annually! You can use the money for whatever; go to a ballgame, buy some golf clubs or even take golf lessions, says the announcer, as a window is heard smashed in the background.  Chutpah, itz.... 

I Am The Unknown Comic's picture

If ANYBODY (hint, hint Tyler) here at ZH wants to watch The Bernankster quiver his lip today at 10:00 am, here's the C-Span link:

http://www.c-span.org/Live-Video/C-SPAN3/

 

I HOPE (wink, hint, wink hint hint) that Tyler puts up a post for this because we sure did have fun yesterday....

realitybiter's picture

Just Print More!!!!

Jiggering PM's???

Jamie Pukes Money?

Jiant political maneuvering

Catullus's picture

The listed it under intangible goodwill: Majority Ownership Stake in US Justice Department.

bigwavedave's picture

if there existed a 'hit list' he would be close to the top of it. do you think he knows this or not? just wondering......

sbenard's picture

We're screwed! And JPM is screwing us!