JPMorgan Chase

For a new investor in gold and silver, here is the most lucid piece of advice I can offer. Identifying severe undervaluation points in gold and silver, buying gold and silver assets during these times, and not worrying about interim short-term volatility, even if the immediate volatility is downward, is much more likely to impact your accumulation of wealth in a positive manner than trying to perfectly time market tops and bottoms in the highly manipulated gold and silver game.

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The CDS index market remains one of the most liquid sources of hedges and positioning available (despite occasional waxing and waning in volumes) and is often used by us as indications of relative flows and sophisticated investor risk appetite. However, as Kamakura Corporation has so diligently quantified, the broad CDS market (specifically including single-names) remains massively concentrated. This concentration, evidenced by the Honolulu-based credit guru's findings that three institutions: JPMorgan Chase, Bank of America, and Citibank National Association, have market shares in excess of 19% each has shown little to no reduction (i.e. the market remains as closed as ever) and they warn that this dramatically increases the probability of collusion and monopoly pricing power. We have long argued that the CDS market is valuable (and outright bans are non-sensical and will end badly) as it offers a more liquid (than bonds) market to express a view or more simply hedge efficiently. However, we do feel strongly that CDS (indices especially) should be exchange traded (more straightforward than ever given standardization, electronic trading increases, and clearing) and perhaps Kamakura's work here will be enough to force regulators and the DoJ to finally turn over the rock (as they did in Libor and Muni markets) and do what should have been done in late 2008 when the banks had little to no chips to bargain with on keeping their high margin CDS trading desks in house (though the exchanges would also obviously have to step up to the plate unlike in 2008).

If JPM, which just launched the financials earnings onslaught by first reporting Q4 results, is any indication, it will not be pretty for the financial sector which has seen dramatic moves higher in the past several weeks, because as Jamie Dimon says, Q4 was "Modestly Disappointing." The reason: a top line miss, and a continuing contraction in capital markets leading to yet another decline in Investment Banking results. Also, what DVA giveth, DVA taketh away, and with CDS tightening in the quarter, DVA resulted in a $567 million loss in the quarter. Yet even with the DVA impact exclusion, revenue, which was reported at $21.47 billion would still have missed estimates of $22.56 billion. Finally, what would a quarter be if a bank did not reduce its loan loss allowance and release even more reserves, no matter how the market is actually doing: JPM did just that in its mortgage banking division, lowering its net loan loss allowance by $230 million following a $1 billion allowance reduction in loan-losses offset by actual impairments of $770 million. Stock is down following the release.

Analyst surveys have now risen to the level of fact, as we all know.  Thus Bloomberg and other news outlets feature detailed reports about the opinions of the Sell Side community as though these musings were burned into stone tablets with the fire of the Holy Spirit.

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Five National Banks Sued by AG Coakley in Connection with Illegal Foreclosures and Loan Servicing

"The Justice Department is now contemplating whether to use the HUD audits as a basis for civil and criminal enforcement actions, the sources said. The False Claims Act allows the government to recover damages worth three times the actual harm plus additional penalties."

The banks and institutions that now run this country are running absolutely wild and out of control.

They do not fear judges or law enforcement.

They do not fear any law.

They do not need permission to kick down your front door, steal what they want and throw everything else into the streets.

What stops them from YOU being their next "mistake"?

Housingwire: "In the memo, Chase says it believes the factual information given in the affidavits are accurate and not affected by whether or not the signer knew the details."

In the memo, Chase says it believes the factual information given in the affidavits are accurate and not affected by whether or not the signer knew the details.

4closureFraud here...

Factual information eh??

Explain this then…

Why were Two Original “WET INK” Notes Discovered in Same Foreclosure Case?

It looks like two different attorneys from the Florida Default Law Group did not realize that the other attorney filed a “copy” before they did.

Not only were there two notes filed as certified originals in the case, they were slightly different...

As GMAC would say, just a “technical” issue…

BlackRock continues to churn Maiden Lane LLC into its second anniversary, which turns out to be an important date. If it can mark to model the portfolio high enough, JPM could get cashed out ahead of Uncle Sam.

Either JPMorgan Chase is honorably managed or incredibly stupid. A review of the top 4 banks use of Nonaccrual on their GNMA loans reveals JPM standing apart in their "strategic" use of Nonaccrual.