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What's Wrong With The Following Chart... Or How JPM's Traders Humiliated Goldman Sachs
As we reported previously, for the third quarter in a row, Obama's favorite punching bag bank - JPMorgan - reported a statistically impossible zero trading day losses.
Some suggested that since in the New Normal market in which it is virtually impossible to lose money this was to be expected; either that or just because banks work purely to satisfy client flow and have little principal risk, there is little reason for them to actually lose money trading. Both these ideas got blown out earlier today when Goldman reported that in the third quarter, the FDIC-insured hedge fund's trading loss days soared to a total of 15 days: a whopping 23.4% of the total 64 trading days in the quarter.
While this may not seem as much, it is a veritable Mt. Everest compared to the 6 days losses in Q2, and orders of magnitude greater than the just 2 loss days in the first quarter of the year.
As a reminder, Goldman's jump in unprofitability took place in a quarter in which JPM had zero trading losses. In fact in happened in a year in which JPM had zero trading losses. This can be seen on the following chart comparing JPM and Goldman win/loss trading days for the past year.
So what happened? Did Goldman suddenly let itself go and let banks like JPM pocket all the profits? Did Goldman fire all of its best traders and allow JPM to humiliate it where it really counts: successful trades?
Or was this merely the latest exercise in optics by the wiliest of banks: after all, when you have an administration hell bent on punishing any and every bank that for any reason does something out of the ordinary - even if said "punishment" is merely populism-pleasing wristslaps - the last thing you want to do is add insult to injury and indicate you are absolutely flawless, as JPM continues to do and report quarter after quarter of trading perfection... and soaring litigation reserves.
Maybe this is just one of the reasons why Goldman has so far managed to slip completely untarnished through the DOJ's punitive cracks?
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Poor Goldman Sachs!
They might need a bailout!
They are an essential component of the Ponziconomy!
up 76.7% oh the humility
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"Global Financial And Trading Platforms On System OVERLOAD"http://stateofthenation2012.com/?p=2377
^^^
JPM announced they're getting out of the commodities (gold) rigging game and got rid of their building with the gold vault, and suddenly they go from darling of the government to default punching bag of choice. Coincidence?
derp
A bit of misdirection a day, keeps the regulators at bay.
When things really start to fall apart and get sporty, the TBTF banks will start to murder each other. Self organized criticality is a bitch.
Let the bloodsport begin!
Ah yes, "The Gluttony Games"
Strong hand vs. weak hand. My predatory algos are better than yours.
Over.
Ummm .. so what is the problem? In its role of managing certain portions of the market and covering for others, Goldman found it necessary to punt a few dollars for a greater goal. It just means that JPM is not stellar, it means that JPM is a weak FREE RIDER that companies such as Goldman need to coddle and protect.
LB: Hi Jamie, Whaz up.
JD: Have you seen that latest chart at ZH? That's why I'm richer than you!
LB: Damn, lost the wager on the presidential cuff links.
Can someone explain the x-axis of these graphs? Are these levels of profit/loss?
See the bar chart on http://www.zerohedge.com/news/2013-11-07/and-latest-firm-under-investigation-currency-manipulation-goldman
The x axis is ranges of profit or loss on the day in millions of $, y axis is number of days in that range.
Gracias, amigo.
Let's see what that chart looks like when the market goes down. Oh wait, we won't be able to bc JPM will have disappeared from planet earth.
Masters of the universe, indeed! These guys are beyond good. It's almost like the market is rigged.
Well played!
Obama's favorite punching bag bank – JPMorgan – Tyler
The fight between Obama and JPM reminds one of professional wrestling where both fighters are on the same team to create mistaken impressions.
The fact is Obama works for the owners of the Federal Reserve whose key chains not only have a key to the Treasury but a key to the Oval Office.
And when a $13 billion slap on the wrist comes along, it’s nothing more than propaganda like the professional wrestler’s “hammerlock” on his oopponent (oh, the pain on his face as the public cheers).
The lie of the American economy is defined by a Twitter valuation about equal to food company General Mills ($32.32 billion), a calculation made by Zachary Seward on Nov. 4.
The economy is not a debate between Goldman and Chase. It’s between the Fed and the American people.
When America was in its 11th hour of economic destruction - mired in unemployment and manufacturing base losses, transfer of weatlh taxes, socialism and immigration problems - Washington’s banker-created Democrat/Republican Establishment Party brought on the bulldozers to finish it off – Obamacare.
Yes, what we need now, according to the DC Establishment, is to throw out the last vestige of capitalism left in America’s healthcare industry, and bring in Lenin-esque socialized State-run healthcare – a Communist wet dream projected by the government to push spending on medical services to almost 20 percent of U.S. gross domestic product by 2021.
This is the share of the economy Establishment politicians the likes of Reid, McConnell, Hatch and McCain handed over to the State, i.e., in 2011 spending on healthcare consumed about 17.9 percent of GDP, the Centers for Medicare and Medicaid Services said on June 11, 2011. “The increases in such expenditures will continue to outpace economic growth projections, jumping 7.4 percent in 2014, when much of the insurance expansion created by the health law begins,” Bloomberg reports.
Things are desperate in the US of A.
http://www.bloomberg.com/news/2012-06-13/health-care-spending-to-reach-20-of-u-s-economy-by-2021.html
http://qz.com/143245/twitters-ipo-could-now-be-bigger-than-googles/
JPM made the same claims the whole time they were riding the whale trade. They are proven liars and frauds...period. Jamie Dimon does nothing put put my BS detectors into overdrive. JPM is a complete and total accounting farce, wrapped in lies, and served with a generous side of over the top arrogance. Their traders are clowns. Their accountants are criminals. Their managers are ignorant buffoons that understand nothing about banking or finance. Their entire operation is a worthless ponzi scheme drinking a firehose of bailout money from the Fed.
"you have an administration hell bent on punishing any and every bank" are you kidding? The punishment are kubicki theater to make it appear they are doing something. How did Holder get rich?? How about Mary Jo? Or Gensler? The regulatory system is bought and paid for by Wall Street...with trusted lever movers at every level.
JPM is screwing it up as it becomes too obvious if you never have any losses. Plus unless you record losses how can you keep $85 Billion flowing into your coffers!
Just as with the last financial crisis...they are greedy and stupid as ever!
I'm buying JPM. If you can't beat 'em, join 'em
Clearly, illegal trading profits are higher than costs of fraud insurance and ongoing criminal defense.
How ironic - Vampire Squid the muppet to JPM.
http://vegasxau.blogspot.com
You can't buy fraud insurance. It would create what some people call 'moral hazard'.
And we all know how well the banks perform when they are backstopped.
If Goldman is "doing God's work" just who does JPM think they're messing with?