The Number Of Days In Which JPM Lost Money In All Of 2013 Is...

Tyler Durden's picture








Well, what did you expect.

However, there's more.

First, the reason why the familiar histogram showing the trading days profits (we would say losses but TBTFs don't lose money in the New Normal) such as the one seen here is no longer present, is because JPM has decided to no longer show it as of this quarter.

Prior to the fourth quarter of 2013, the Firm disclosed a histogram which presented the results of daily backtesting against its daily market risk-related gains and losses for positions included in the Firm’s Risk Management VaR calculation. Under this previous presentation, the market risk related revenue was defined as the change in value of: principal transactions revenue for CIB, and Treasury and CIO; trading-related net interest income for CIB, Treasury and CIO, and Mortgage Production and Mortgage Servicing in CCB; CIB brokerage commissions, underwriting fees or  other revenue; revenue from syndicated lending facilities that the Firm intends to distribute; mortgage fees and related income for the Firm’s mortgage pipeline and warehouse loans, MSRs, and all related hedges; and market-risk related revenue from Asset Management hedges; gains and losses from DVA were excluded.

If JPM had used this old methodology, JPM would have shown the following: "Under this prior measure there were no VaR band breaks nor any trading loss days for the year ended December 31, 2013."

Needless to say, this has never happened before.

So what's wrong with no trading losses: after all a bank works mostly on a flow basis, right, so the customers take on principal risk, right? Wrong.

We already know for a fact that JPM's primary business model until the beaching of the London Whale was abusing excess deposits and using them precisely as prop trading capital. However, for the best picture of the firm's Old Normal trading day win/loss distribution, we go back to JPM's trading day histogram for 2008. This is what it should look like.


Perhaps it is out of shame that JPM did not want to disclose the fact that based on an apples to apples methodology the firm no longer loses money. Any money. Ever. So what did JPM do? Why it introduced oranges of course. From the just released 10-K:

Effective during the fourth quarter of 2013, the Firm revised its definition of market risk-related gains and losses to be consistent with the definition used by the banking regulators under Basel 2.5. Under this definition market risk-related gains and losses are defined as: profits and losses on the Firm’s Risk Management positions, excluding fees, commissions, fair value adjustments, net interest income, and gains and losses arising from intraday trading. The following chart compares the daily market risk-related gains and losses on the Firm’s Risk Management positions for the year ended December 31, 2013, under the revised definition. As the chart presents market risk-related gains and losses related to those positions included in the Firm’s Risk Management VaR, the results in the table below differ from the results of backtesting disclosed in the Firm’s Basel 2.5 report, which are based on Regulatory VaR. The chart shows that for the year ended December 31, 2013, the Firm observed two VaR band breaks and posted gains on 177 of the 260 days in this period.


In other words when one excludes such trivial things as "f,ees, commissions, fair value adjustments, net interest income, and gains and losses arising from intraday trading" and why one would exclude gains and losses from intraday trading when the bulk of JPM's revenue comes precisely from this is beyond us, JPM did in fact lose money. It just didn't lose money when everything is included.

And that, among all the other well-known reasons, is why Jamie Dimon is once again richer than you.

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Zero_Sum's picture

That was last year. Change is in the wind...

Iocosus's picture

I bet the amount is less than JPM bankers who leapt from buildings.

geotrader's picture

It's cool being able to make the rules up as you go along.  

Rainman's picture

yah,,,worldwide corporate accounting rules are being broken more frequently than the Ten Commandments 

Herd Redirection Committee's picture

I was working in an accounting firm at the time mark-to-market was 'temporarily suspended'.  I was losing my mind, talking to the vets, each of whom treated it like nothing.  Whats the big deal?  That seemed to be their attitude.  My attitude was: "Right, who cares about accounting standards".

ghengis86's picture

I junked you because you cared! Welcome to the New Normal, ZH edition!

(Which pill am I supposed to take? Red or Blue? Fuck it, I'm downing both!)

SDShack's picture

Obviously, you're not a sociopath. +1 for you.

BandGap's picture

As long as it's your football.

krispkritter's picture

Like 'primates porking a pigskin'!

Dineroguru's picture

This just reflects the great risk management of JPM and the fortress balance sheet....that's why the banksters there are regularly jumping off the roof-- because they are soooo happyyyy!

fonzannoon's picture

Whisper rumor is 3 employees lost money for JPM last year but JPM more than recouped it on their "dead peasant" insurance policy proceeds.

ak_khanna's picture

JPM is the biggest operator in all the stock, currency, commodity and bond casinos and the house always wins. Using the free gift of billions of dollars every month from their buddy FED and sophisticated softwares or algos the operators  make the markets rise till all short positions in the market are covered and the majority of traders move to the long side. Once this is done the market is allowed to fall till all long positions are closed and short positions undertaken. Then rinse and repeat. The price mechanism in the electronic exchanges around the world has little to do with the actual demand, supply, fundamentals or state of the economy.

SDShack's picture

Yep, they have so corrupted the entire system, with bribes and politican buy offs, that they can do anything they want. They have engineered the system to prevent another Lehman. We live in a centrally planned economy... planned by the Central Banks and their banking partners. You have to be extremely nimble in this environment if you choose to play. Just like a good mafia boss, the takedowns are all planned. It's the sociopath way. Rinse & Repeat is dead on right. 

Colonel Klink's picture

I'm sure not a smidgen of corruption!

HyBrasilian's picture

Let's drink some whine & celebrate!

Colonel Klink's picture

Sure I'll buy you a little manischewitz and you can toast with Jan Koum from Whatsapp.  The founder who just went from food stamps to billionaire courtesy of SuckerBERG.

Colonel Klink's picture

Thanks for the chuckle but I couldn't make it even a minute of watching before I wanted to set the barn on fire.

BeetleBailey's picture

Big surprise. The Mor-goon bastard shites all need to jump off the highest building....the fuckers.

Randoom Thought's picture

I guess, being able to control price helps just a touch. Now that price is all computerized and they and their cronies write the programs we would have to be idiots to think that they could not make money every day. OK, so what have they proven?

a) they can create a false market with many false trails of ownership (Cede and Company owns stock shares and we are beneficiaries to the shares, like the MERS model. Bondholders are more powerful than shareholders. Voting rights vary.)

b) they can absolutely and monopolistically control price within that market

c) like "carnies" they can deceive people to believe that the game is not rigged and people have a chance ... but really only when putting ones money through an insider.

d) they can do it all without repercussions because those who control the issuance of money care not who write the laws

Greenskeeper_Carl's picture

I understand too big to fail means to big to jail/prosecute, but you would think these fuckers would feel a need to at least pretend to occasionally lose, and thus keep the illusion alive that the market isn't totally rigged. But, I guess the muppets never learn.

SDShack's picture

Learn what a sociopath is. In their twisted minds, sociopaths can NEVER lose. What you are suggesting is against their very DNA. It will never happen. They will violate any law, and sacrifise anyone... coworker, friend, relative, even their own family members just to win.

NEOSERF's picture

Steal with excessive risk taking when things are good, taxpayer bailouts when it is THAT is a business model...

hugovanderbubble's picture

FrontRunning,Insidetrading,UHFT Algos,.....Rigged Casino

MFLTucson's picture

Courrption is now a way of life in the former USA and interestingly enough, we have the Jewsih banking cartel at the helm yet again.  What a disgusting group of crap!

LawsofPhysics's picture

This is why Jamie is "richer than you". 

cwwang's picture

Did you see the latest LinkedIn ad with quoting Bill Gates saying:

"There will almost be no poor countries by 2035." -- Bill Gates

I guess with JPM's help.  No one will be poor because they trade to win!

MontgomeryScott's picture



LawsofPhysics's picture

I see that you have been to the Georgia Guidestones.

Downtoolong's picture

And before you think for one second it might be possible JPM is just that much better at predicting and trading markets than the rest of us, consider this: If I were granted zero trading loss capability, I would be making a $trillion per year compared of the measly billions JPM rakes in.

fijisailor's picture

You forgot the token fines for insider trading.  Deduct $20 billion to pay off .gov stooges.

LaurentDeLyon's picture

a lesson about 'how to baffle with bulshits' ? JPM +1 / rest of the world (excluding other banks) 0

El Hosel's picture

"abusing excess deposits"....  Eliminate the excess deposits, abuse the Bankers.

El Hosel's picture

JPM ZERO Trading loses for the year should be on every headline or front page everywhere... Its miraculous, spread the news. Who needs GS doing Gods work now?

Lets Have J.D. on with Kudlow to explain this good fortune, maybe share some mothers milk on air.

alfred b.'s picture


        JumPer Morgan


sodbuster's picture

"fair value adjustments"- wow! I'll bet they get creative with that! After all, a banker is nothing but fair, right?

NDXTrader's picture

And there is absolutely no one with a vested interest to stop them. The other banks have all simply colluded/attuned to their trading patterns, the politicians have been paid, the government gets their "litigation settlements" every quarter, Cramer and crew's job depends on the illusion.

All you have is some lonely short sellers screaming this doesn't make sense!

2008 really scared the piss out of the elites. For a moment they almost lost control and now they are determined to not let it happen again, even if it means controlling/rigging every market. We are down the rabbit hole

unplugged's picture

There is absolutely no one above them to stop them.  They own the govt.  They own, or at a minimum collaborate as piers with, the CIA, FBI, NSA, DHS. 


PrawnStar's picture

Can you please clarify why you think the banksters own/collaborate with the intel agencies? I get that they have inordinate political influence (and economic, through their Fed connections), but my guess is that they couldn't care less about anything other than creative rule-bending to make ever more loot.

EDIT: btw, I also bet that if the time comes when it's politically expedient, any "bought" politican would gladly throw any bankster under the bus. The problem is that to date, there's been no national political will in that direction.

centerline's picture

At some point thier interests will diverge.  That is when it gets interesting.  That is when the next act of this tragedy gets rolling.  Until then, it is business as usual.  Rape, pillage, etc.

unplugged's picture

of course not all - but enough of them to pull off 911, etc

SDShack's picture

NDX and Unplugged are right. If you truly believe that a bought politician will sacrifise a banker, then I have one name for you... John Corzine. If ever a banker needed to be jailed, it's Corzine. Trial? No. Indictment? No. Hell, he wasn't even really investigated. The bankers OWN the govt. As to the security apparatus, what do you think would happen if the masses rose up against wallstreet like the civil rights marches of the 60's? The govt would send in troops immediately to stop it. Why else is the govt stockpilling billions of rounds of ammo at DHS. The last thing the govt would do is listen to the masses and reform wallstreet.

PrawnStar's picture

We're talking about America here. There is a broad category of professions which one could characterize as the "throw-anybody-under-the-bus-for-personal-gain" professions. From the ongoing discourse, I must assume that many politicians inhabit this group; so do many of the bankster/finance types so focused on demonstrating increases this quarter or year, and so richly rewarded into their new lifestyles that they don't speak the same language as you or me. Is there a conspiracy? No. Have the "throw-anybody-under-the-bus" types increased their power? Yes.

But If America had cried out for Corzine's head, Bill Clinton himself would have issued a statement demanding his head. These guys have no allegiance to each other. Although it may yet get there, "the govt" as you put it is not a single entity. It's still made up of a whole bunch of self-serving individuals. Regarding DHS stockpiling rounds of ammo: I read the prisonplanet articles too. You think he doesn't have an agenda? He might be right, but damned if I believe he's purer than any of those fu(#s he's trying to disparage.

Transcend, brother, Transcend.



SDShack's picture

So the people have to cry out for the govt to enforce the law in your world. You mean our elected officials don't represent our interests? You mean our elected officials have such low character and ethics, that the people have to demand they comply with the basics of civil society? I thought this was a democratic republic based on the rule of law? Silly me. You just admitted the people are sheep and have to bleet to get what they want from their true masters. And how will the people cry out when the politicians and the MSM do everything to control the sheep and prevent them from massing and crying out? Why is the IRS targeting people for crying out? Why is NSA monitoring everyone for crying out? Why is the FCC trying to censor news organizations for crying out? Why are gun owners targeted for crying out? For every little fish that is made an example of (like Martha Stewart), a big fish gets protected, and even rewarded (like Corzine and Holder). With all lthis evidence, you don't think there is a conspiracy to control the sheeple.

Wake up brother, Wake up!

messystateofaffairs's picture

Widespread truth is their Achilles Heel. Keep bleating to the sleeping sheeple. I'm going to do my part by taking out advert's on the Khardashians and write conscious lyrics for Miley Cyrus.

El Hosel's picture

Will will "restore confidence in the system" even if we have to break every law on the cooked books.

unplugged's picture

CRIME PAYS - whoever taught me that crime doesn't pay I'd like to take them out and beat them !