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The "Formerly Brilliant Dimon" And Maxine Waters Debate Delta Hedging And Negative Convexity Live
As if last week's bought and paid for by JPMorgan media circus in the Senate was not enough, in which Jamie Dimon played several bribed muppets like a fiddle, today we get part two. Momentarily, the Committee on Financial Services will pick up the baton where the Senate left off, and confirm to everyone that the people who lead this country, at least on paper, are some of the most incompetent, and outright clueless when it comes to financial matters. The same matters that have led America to the Second great depression, which has so far been prevented from wiping out 20% of the economy only courtesy of Bernanke's relentless money printing. Dimon's testimony, which is a replica of last week's, can be found here. In other news, Jamie Dimon is furious he never bribed Maxine Waters before. Now he will have to explain introductory math for absolute idiots. Karma is a bitch.
In addition to Jamie, who will headline the second session, today's witnesses will include Securities and Exchange Commission Chairman Mary Schapiro; Chairman of the Commodity Futures Trading Commission Gary Gensler; Acting Chairman for Federal Deposit Insurance Corporation Martin Gruenberg; Comptroller of the Currency Thomas Curry; and Federal Reserve Board of Governors General Counsel Scott Alvarez.
The live webcast is after the jump.
Finally, those who wish to pour their hearts out vis-a-vis the Formerly Brilliant Dimon, can do so below. The best comments will be used by Geoffrey Raymond as an annotation addition to his "Formerly Brilliant Dimon" presented below.
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Jaime, are you kidding me? Regulators can handle.
“the people who lead this country, at least on paper, are some of the most incompetent, and outright clueless when it comes to financial matters.”
Disagree. They know exactly what questions not to ask.
They all have to go. $800 per hour lawyers are a thing of the past. The legal profess is under great pressure.
To anyone that feels the need to "lose it", first please dont feel bad. I understand and its understandable. However, please dont waste your moment on bath salts and gnawing on some strangers face. Do the right thing; kill one banker, one lawyer, one politician, and one cop before you turn the gun. You only get to "lose it" once so please do something useful with it.
dimon being grilled by that fruit frank, the same fruit frank who subprimed the world into ruination, and the psychopath enabler who securitized the heroin junkie loans, cute.
Time for a special prosecutor... how about Bill Black? Investigate ALL the derivatives monsters, as well as the commodity manipulators... and YES, send the crooks to prison.
hilarious...Dimon says the "other" banks should cover JPMugger if it fails!
I assume the other of which he speaks is the Federal Reserve.
He knows that the top 4 all have 96% of all the derivatives.....if hes going down, they're going down too
"Mr. Dimon, why are you gambling in the London casinos versus the New York casinos."
Maxine Waters not only is an embarrassment for black people everywhere....she embarrasses the entire primate family ! Socialism was built around appealing to brains like hers ! Monedas 1929 Comedy Jihad Vaudeville Rule # 1 .... Don't Go On After A Clown .... That's Why They Saved Her For Last .... Priceless .... She Lightens My Load .... "Nigger" Is To Good For Her Kind .... "Nigger" Is For People I Like i.e. German Tax Paying "Niggers" .... Maxine is a "Sub-Nigger"
AMERICAN THEATER - WE LOVE IT..
BEHIND CLOSED DOORS:-A MASSIVE ORDER IN THE TONS TO GO THROUGH TONIGHT FOR GOLD.....
Jamie Dimon can go die on a spike. It would save me the trouble.
Someone up top spoke about the thought creeping in that our government is illegitamite. I guess youre finally putting the dots together? I would heckle you for not doing it sooner, but at least youre doing it. I dont consider myself a citizen anymore, any compliance they get from me is coerced and under the threat of violence and or imprisonment. Im a subject not a citizen of the great and powerful Amerika.
Now, we seek to operate by revealed truths, not reality. Decrees from on high – often issued by an unholy alliance of religious fundamentalists, self-interested corporations, and greedy fat cats – are offered up as reality by rightwing politicians.
For example, North Carolina law-makers recently passed legislation against sea level rise. A day later, the Virginia legislature required that references to global warming, climate change and sea level rise be excised from a proposed study on sea level rise. Last year, the Texas Department of Environmental Quality, which had commissioned a study on Galveston Bay, cut all references to sea level rise – the main point of the study.
As Stephen Colbert so aptly put it: if your science gives you results you don't like, pass a law saying that the result is illegal. Problem solved.
Except it isn’t. Wishing reality away, doesn’t make it go away. Pretending that the unreal is real doesn’t make it real.
And the descent into the Dark Ages is marked by more than global warming. Take austerity budgets. There is an extensive historical record showing that implementing austerity measures in an economic slowdown is counter productive. And this data is backed up by current experience in Europe, where austerity measures have been disastrous.
So the data is telling us austerity during a jobs crisis hasn’t worked in the past and isn’t working now. What to do?
Pass an austerity budget, of course.
Welcome to the Dark Ages.
Published on Monday, June 18, 2012 by Common Dreams
Dark Ages Redux: American Politics and the End of the Enlightenment"Avast ye maties, let's go sailing and who ever sights Moby Dick first will get the GOLD deboon! Let's KILL, KILL MOBY DICK!" The crew follows gladly due to their own FATAL flaws. It is allows the fault of the IDIOTS.
Little wonder that EMPEROR Jamie wants the next FED HEAD to be a white horse!
So uh...
What you are saying is that we need to spend more money we don't have and borrow more money we can't afford so that we can "avoid" austerity?
Hate to break it to you but the reason we are in this clusterfuck is because of too much spending and "austerity" is exactly what we need. This austerity needs to be total, for all (including bankster fucktards and government assholes) members of society. Massive reduction in taxation and government spending, severe "austerity" for those who abuse the law (as in no more free ride for you) and a reduction of the role of government in society (including major military contraction).
When this happens for many years we can see a path to recovery. More spending will continue to absolutely fuck over the entire world so take your pro spending agenda and go fuck yourself!
/rant
Why isn't Banzai posting on this thread? Banzai, spice it up please. Bring in the Limerick King
Although I'm no Ayn Rand disciple this quote from her always struck me as being dead on accurate:
Wow! Somebody with a good point ,getting down to the point that the markets have become a big casino and CNBC just cut him off.
Yeah, I noticed that too, you could almost hear the producer screaming through the headset "Commercial break! NOW before it costs us Fidelity and Merrill Lynch ad revenue!"
"Raising the sea level ain't as easy as it used to be !"....Yogi Berra Monedas 1929 Comedy Jihad Tribute Tour
Read more: http://www.rollingstone.com/politics/blogs/taibblog/senators-grovel-embarrass-themselves-at-dimon-hearing-20120615#ixzz1yG4WKf27
That most of them had absolutely no conception of even the basics of the derivatives market was obvious. But what was even more amazing was that several of them had serious trouble even reading aloud the questions their more learned staffers prepared for them. Many seemed to be reading their own questions for the first time.
here is what happens behind the scene:
The Federal Government, Throwing Families Into The Street To Make Billionaires Out of Millionaires
“The largest transfer of wealth from the public to private sector is about to begin. The federal government will be bulk-selling the massive portfolio of foreclosed homes now owned by HUD, Fannie Mae and Freddie Mac to private investors — vulture funds.”
So warned Roger Arnold, chief economist for ALM Advisors of Pasadena, California, in a column for RealMoney on August 11, 2011, that first lifted the lid on this latest colossal scandal to come out of the 2008-2009 financial crisis.
“These homes,” wrote Arnold, “which are now the property of the U.S. government, the U.S. taxpayer, U.S. citizens collectively, are going to be sold to private investor conglomerates at extraordinarily large discounts to real value. You and I will not be allowed to participate. These investors will come from the private-equity and hedge-fund community, Goldman Sachs (GS) and its derivatives, as well as foreign sovereign wealth funds that can bring a billion dollars or more to each transaction.”
Warren Buffett, one of the richest men in the world, obviously, would have no trouble qualifying for the privilege of bidding in this fire sale for the super-rich. And the “Oracle of Omaha” appears to be more than casually interested in getting in on the game.
The Wall Street Journal reported on March 20, 2012: “Warren Buffett, considered a sage investor and chief executive of Berkshire Hathaway Inc., said in an interview with CNBC-TV last month that he would buy up ‘a couple hundred thousand’ single-family homes if he could do so easily, given the high yields on rental investments.”
FOR BILLIONIARES ONLY
And More Depth and background on the fusion of government and the businesses that own our government: (This forms part of the pretext for seizing properties from a private person and transferring them to government/corporate fused entities.)
An Enterprise’s failure to effectively manage its contractors’ implementation of basic REO responsibilities, i.e., securing, maintaining, repairing, and marketing properties, would place it at considerable financial risk. It could also endanger the stability of the communities in which the properties are located. For example, if a contractor fails to secure properties for which it is contractually responsible, then the properties may be broken into, looted, and used for illegal activities. Similarly, a contractor’s failure to maintain a property, e.g., remove debris, cut lawns, fix broken windows, etc., can reduce its value and detract from its marketability, as well as the marketability of near-by homes. The deteriorated condition of an REO property may cause it to remain on the market and in an Enterprise’s inventory for an extended period, thereby increasing the Enterprise’s total carrying costs. This, in turn, will reduce the Enterprise’s returns on the sale of such properties and, ultimately, increase the taxpayer costs associated with the conservatorships.
AND HERE’S A BIG TELL THAT DEMONSTRATES HOW WE’RE ALL GETTING HOSED HERE BY CONTRACTORS RIPPING US ALL OFF:
Finally, there is also the risk of considerable fraud and abuse associated with the failure to manage Enterprise REO contractors effectively. Under the best of circumstances it may be challenging for the Enterprises to verify that certain types of maintenance and repairs, such as interior painting and plumbing, are being completed in accordance with quality standards and within established timeframes for thousands of foreclosed properties across the nation. Therefore, it is important for the Enterprises to establish effective property inspection procedures and controls to prevent fraudulent contractor reimbursements.
FHFA REPORT
FANNIE MAE SERVICING GUIDELINES
On September 6, 2008, well over three years ago, FHFA exercised that authority, placing the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) (together, the Enterprises) into conservatorships. FHFA has since overseen the largest, most complex conservatorships in history.
Two years ago, FHFA sent Congress a letter setting forth the agency’s understanding of its conservatorship obligations and how it planned to fulfill those obligations. It is time to update and extend that plan in view of the status of the Enterprises and the country’s housing system today.
The two companies have received more than $180 billion in taxpayer support. The benefit to the country from maintaining their operations has been to ensure the secondary mortgage market continues to function. During this time, the Enterprises have completed more than 2 million foreclosure prevention actions, including more than 1 million loan modifications and they have refinanced more than 10 million mortgages. Together they are guaranteeing roughly $100 billion per month in new mortgage production, representing about 3 of every 4 mortgages being originated. But the Enterprises’ ongoing operations are entirely dependent on taxpayer support provided through the Senior Preferred Stock Purchase Agreements with the U.S. Department of the Treasury.
http://mattweidnerlaw.com/blog/2012/06/the-federal-government-throwing-families-into-the-street-to-make-billionaires-out-of-millionaires/
Always a BRILLIANT narcisistic Sociopath!
The senators could have used the hearing as an opportunity to grill Dimon in detail about the entire history of the Chief Investment Office, the unit of Chase that recently copped to unexpected multibillion-dollar derivative trading losses. This was an opportunity to show Americans how a too-big-to-fail commercial bank like Chase – supported by vast amounts of public treasure, from Fed loans to bailouts to less obvious subsidies like GSE purchases of mortgages and implicit guarantees of bank debt – uses the crutch of government support to gamble recklessly in search of huge profits, with the public on the hook for any potential downside.
The senators should have interrogated Dimon about his role in moving toward that reckless gambling strategy. Instead, they mostly cowered and cringed and sat mute with thumbs in their mouths, while Dimon evaded, patted himself on the back, and blew the whole derivative losses episode off as an irrelevant accident caused by moron subordinates.
Read more: http://www.rollingstone.com/politics/blogs/taibblog/senators-grovel-embarrass-themselves-at-dimon-hearing-20120615#ixzz1yG5fdkFs
These politicians love these hearings because they can score brownie points with Jamie and get bonus money deposited in their Swiss bank accounts. For every "thank-you" directed at Jamie they get 100k.
Signs of mental illness....
Dimon’s performance was oddly nervous, grating, and maladroit throughout. He didn’t look like an experienced public speaker and one of the most powerful men in the world, but more like a traveling salesman stammering and rambling in an attempt to talk a night judge out of a pandering bust.
He particularly kept swallowing the word "granular," which repeatedly came out as "granyer." The phrase, "CIO, particularly the synthetic credit portfolio, should have gotten more scrutiny," came out like CIO partick-ler the synth-por-shoulda more scrooney. I don’t mention this to pick on the guy’s public presentation, but more because it seemed like Dimon’s speech got more manic and incoherent the more he dissembled and covered up.
Read more: http://www.rollingstone.com/politics/blogs/taibblog/senators-grovel-embarrass-themselves-at-dimon-hearing-20120615#ixzz1yG6dYRPD
You gotta wonder how he got where he is.
Re Maxine Waters discusses delta hedging....
If you're asking Maxine Waters to discuss anything intelligently, i'm afraid there's a better chance of getting a shrimp to whistle Beethoven's 5th Symphony..
ALL HAIL EMPERPR JAMIE! Bring on the WHITE HORSE!
It could be argued that this is just transition, but the problems of the “market state” go much deeper. Bobbitt’s argument is largely justified with reference to commerce: international trade and globalisation, altthogh he does mention the capital markets. But what is evident with the series of financial crises over the last 15 years, which used to occur mainly in developing countries but which are now consuming the developed economies, is that the markets that have the real power are financial markets. And these are stateless.
Worse, they have taken over the role of the state to set the rules of money in a deeply pernicious fashion. Indeed, we can go further. Global financial markets have become destroyers of states, not a new kind of state. That the traders rely, as citizens, on some sort of state structure to live, is merely an irrelevance, an inconvenient aside.
As I have argued before, it is impossible to deregulate financial markets because money is rules about value and obligation. So what happened instead when financial markets were “deregulated” is that the governments’ role as the setter of rules was handed over to traders, who made up their own rules: more than $700 trillion of derivatives, intense high frequency trading and so on. It results in a weird contradiction: governments trying to save their systems from the new rules being created by the traders, yet the traders relying on the state’s rules about finance to overlay their games of meta money. Meta money traders have to have conventional share trades between buyers and sellers to apply algorithms to manipulate the markets at high speed.
You need conventional commerce in commodities to use derivatives to play commodity futures, for example. It is why governments are constantly attacked by players in the financial markets who are simultaneously hard at work exploiting those “errors” to make money. Meta hypocrisy to accompany the meta money, I suppose.
The tsunami of this meta money, which is borderless, stateless and has no thought for its effect on governments or polities, still relies for its very existence on the rules set up by governments. And as has been obvious since the GFC, governments and tax payers are expected to clean up the mess when it inevitably all goes wrong. That can be done once. When it goes wrong a second time, the firepower will not be there, as is increasingly evident in Europe. The conventional rules will have been weakened too much by the rules invented by the traders of meta money.
It represents a comprehensive failure of government, and will not lead to the creation of a new type of state. It is rather a new type of chaos. It is especially pernicious when governments start to dabble in the meta money, as Greece did when the government covered up its debt by using derivatives. That is wholly unforgiveable. It is bad enough that governments have allowed traders to make up their own rules with money, in effect playing Russian roulette with money itself. But when they, too, start using the same tricks, then the road back to sanity becomes long indeed.
The danger is that it is a road to anarchy, no matter how often one quotes Adam Smith and fantasises about the invisible hand. Even Alan Greenspan eventually figured that out: that letting self interest and greed run rampant is not a sure fire route to an altruistic result. Such liberalist logic can be defensible in commercial markets; it is nonsense in finance.
Rather than Bobbit’s market state, the breakdown of rules, the capturing of policy and the utter mess that is confused public and private interests suggests something more redolent of Moises Niam’s “Mafia State”. (www.nakedcapitalism.com/6/17/2012)
Bow DOWN yee maties to the GODFATHER and get your GOLD debloone!
Maxine Waters is a closet Mexican
This is off topic but maybe one of you guys can help me out. Somebody posted a video or a link to a video on here last week that showed Obama and Romney going back and forth on different issues. The video demonstrated how alike they really were on everything from healthcare to taxes etc and I can't seem to find it. Thanks.
try Ron Paul's website. I'm sure he created it.
Did I somehow cross over into a paralell world where reality doesn't exist or was that aspirin I just took really a full hit of Purple Haze?
It was the brown acid.
Don't eat the brown acid.
"hedges and wedges" - Rep. Gary Ackerman
brilliant
So Dem are trying to pressure for more money($25 Million)for CFTC but not one of them point out the overall value of Derivatives Market or specifically at JPM.
WTF?
If you can fog a mirror, you can be a congressperson. Any other attributes are optional....
The level of sycophancy exceeds anything I have ever witnessed before. There are so many feet dangling out of Dimon's ass he may never be able to sit down again.
Would it not be great..... if one of these Congress-people simply pulled out a gun, blew Dimon away, and then blew their own head off. Take a 10-15 seconds. Be perhaps the best 10-15 seconds in the history of this country.
Please disperse, there is nothing to see here... one petty crook tries to interrogate a grand larcenist.
King George III would be seen as a "Piker' today in Monarchical Fascist Americana!
The gerrymandering [redistricting - http://en.wikipedia.org/wiki/Gerrymandering ] laws of two centuries ago have gone totally ballistic off the freedom-scale to choose and pick your candidate regarding our electoral process today, period!
We have Duke's and Duchess's... Earl's and Squire Knight's... Lord's and Madam's... Count's and Countess's... Viscounts and Baron's, just to name a few as modern day [reptilian replicators?] Senator's and Representative from a finite-quasi line of america's fine[?]st family tradition?
Our constitution has been stripped down to that of a illegible treatise resembling the ill faded 'Magna Carta'!
We have no term limits with meaningful backbone. The same people get reelected over, and over again [from cradle to grave] without even an opposing candidate to test the waters. It is all but a pool of incestuous political shenanigans on a scale from 1 -10 registering 'lucky 13 ?' with the american people following along as sheep... soon to become mutton for the well connected King's Court "Executed" Feast ?
Maxine Waters et.el. need not worry, as do not the other 534 knighted subjects of King George III new america! The supreme feudalistic representation of serfdom, dumb`d-down for the bureaucratic maladjusted dancing-with-the-stars buffons! Always never to far from the suckling teats of Mother Queen... the manly thingamajig?
jmo
cheers
Dear God,
Please allow me to witness Dimon ( cute, my Ipad always replaces demon with that word) Waters and all their sycophants and significant others hanging from lamp posts before I die. If that means my other prayers will be cancelled, I will accept the terms. Thankyou in advanced.
Miffed:-)
Mr. Scott: "We dodged a bullet in this crisis, thanks to you Mr. Dimon." (lick, grovel, lick)
Yes, the Alpha Werewolf dodged a silver bullet; still eating our Women, Children, and future.
I'm Jamie "Blue Dimon" and am the only Viagra that will keep you up