It appears Chuck has finally met his match, and his name is Jamie...
Why the Western Banking Cartel’s Gold and Silver Price Slam Will Backfire - And How You Can Protect Yourself from the BlowbackSubmitted by smartknowledgeu on 04/22/2013 05:27 -0400
Let's get down to the facts of the recent banker gold & silver paper price smash and the lies about the banker gold & silver paper price smash being propagated by the mass media and banking shills like Paul Krugman so everyone can understand why this smash will blow up in the face of the very bankers that executed it at some point down the road. Retail individuals AND global institutions all around the world are finally beginning to understand that physical ownership of gold and silver is how to counter banker fraud & intervention into the gold and silver markets and this realization is going to produce massive blowback.
Earlier today, as part of our JPM earnings recap we observed that "VaR plunged from $106 to $62" and wondered if it was just just "another excel copy/paste error" which as we reported previously, is what JPM's internal audit attributed much of the confusion surrounding JPM's VaR calculation around the time the London Whale blow up nearly doubled the firm's VaR. Because it is always better to blame a clueless intern for botching Excel than to put the blame where it rightfully belongs. It turns out that as frequently happens, there was a dose of financial surreality behind the humor. As Bloomberg reports, the reason for the nearly 50% collapse in the company's reported maximum value at risk was because of, drumroll, yet another change in the model. 'JPMorgan said today it employed a new formula to judge the risk of its credit derivatives position, at least the fourth such model it’s used since January 2012. The portfolio was built by Bruno Iksil, known as the London Whale because his bets were so big they moved markets."
Now is the time to think about how you would live your life if your real value was appreciated and fairly compensated.
Reclaiming the Founding Fathers' Vision of Prosperity
- Euro zone call notes reveal extent of alarm over Cyprus (Reuters)
- Stagnant Japan Rolls Dice on New Era of Easy Money (WSJ)
- Cyprus, European data batters shares and euro (Reuters)
- UK cuts taxes to revive stagnant economy (FT)
- "Quality Control" Rat Body Linked to Blackout at Fukushima (NYT)
- North Korea issues fresh threat to U.S., South probes hacking (Reuters)
- South Korea Says Chinese Code Used in Computer Attack (BBG)
- Osborne paves way for Carney to retool Bank of England (Reuters)
- Carney Gets ‘Escape Velocity’ Mandate With Limiter (BBG)
- Osborne Pledges Five More Years of U.K. Austerity (BBG)
- Bernanke Saying He’s Dispensable Suggests Tenure Ending (BBG)
- Senate Passes Bill to Fund Operations (WSJ)
- Cypriot Bank Levy Is ‘Ominous’ for Bondholders, Barclays Says (BBG)
- Euro, Stocks Drops; Gold, German Bonds Rally on Cyprus (BBG)
- Total chaos:Cyprus tries to rework divisive bank tax (Reuters)
- More total chaos: Cyprus Prepares New Deposit-Tax Proposal (WSJ)
- Euro Slides Most in 14 Months on Cyprus Turmoil; Yen Strengthens (BBG)
- Osborne to admit fresh blow to debt target (FT)
- Even the Finns are giving up: Finnish Government May Relinquish Deficit Target to Boost Growth (BBG)
- Moody’s Sees Defaults as PBOC Warns on Local Risks (BBG)
- Australia Faces ‘Massive Hit’ to Government Revenue, Swan Says (BBG)
- Inside a Warier Fed, Watch the New Guy (Hilsenrath)
- Obama to Tap Perez for Labor Secretary (WSJ) - and with that the "minorities" quota is full
- Finally, this should be good: BuzzFeed to Launch Business Section (WSJ)
Tempest In A Towering Inferno: JPM's Head CIO Trader: "Things Like This, It's Like The Twin Towers Falling Down"Submitted by Tyler Durden on 03/15/2013 13:14 -0400
On April 13, 2012 Jamie Dimon described the situation at the CIO as massively overblown and said it was just "a tempest in a teapot." A few days later, the head CIO trader, Javier Martin-Artajo, when speaking to the former JPM Chief Investment Officer, Ina Drew, had a less sanguine description: "and, and, you know, things like this, it's like the twin towers falling down." Let's agree to disagree and just compromise on "tempest in a towering inferno." But that's not the point of this post. The point is in the same transcript we learn that it was none other than Ina Drew who told Artejo that "it would be helpful, if appropriate, to get, to start getting a little bit of that mark back" and instructed the Spaniard to go ahead and "tweak" the daily P&L on the CIO portfolio by "an extra basis point." Nothing like your supervisor telling you to fudge marks just to demonstrate that the "curve is starting to trend."
On October 2, 2012, news hit that Barry Zubrow, JPM's Chief Risk Officer from November 2007 to January 2012 (in other words, key supervisor of the risk onboarded by the CIO, aka JPM's prop trading desk, for the biggest part of its existence), and then briefly head of corporate and regulatory affairs, would retire from JPMorgan. As Bloomberg reported then, "Now is the right time in my life" to retire, Zubrow, 59, wrote to colleagues in a note today. "We have learned from the mistakes of our recent trading losses." We wonder, if the time was "right" for Zubrow's retirement because the firm realized that the Senate was in possession of the following email sent from Zubrow on April 12, a day before the first fateful Q1 earnings preview conference call in which Jamie Dimon, responding to media reports of Iksil's blow up, said the whole situation was a "tempest in a teapot", in which the Chief Risk Officer essentially told the firm's executives: Braunstein and Dimon, to lie to the public and shareholders?
For those curious about the timeline of the world's biggest prop-desk blow up, here it is day by day and, pardon the pun, blow by blow.
"Since my departure I have learned of the deceptive conduct by members of the London team, and I was, and remain, deeply disappointed and saddened to learn of such conduct and the extent to which the London team let me, and the Company, down."
In the marked absence of JPM CEO Jamie Dimon who will sadly not be present to explain to Senate why he is richer than (most) of the people present while wearing his signature presidential cufflinks, Carl "Shitty Deal" Levin will be the main highlight in today's Senate hearing "JPMorgan Chase Whale Trades: A Case History of Derivatives Risks and Abuses" which as reported previously found that JPM "lied" and "deceived" regulators. As the Seante's report concludes, "The bank’s initial claims that its risk managers and regulators were fully informed and engaged, and that the SCP was invested in long-term, risk-reducing hedges allowed by the Volcker Rule, were fictions irreconcilable with the bank’s obligation to provide material information to its investors in an accurate manner." Today, those fictions will attempt to be reconciled, primarily with the help of the "voluntarily retired" former CIO Ina Drew, as well as JPM's vice Chairman Doug Braunstein and IB Co-CEO Michael Cavanagh. Will anything change as a result of today's hearing? Will JPM be broken down? Will the DOJ begin an inquiry into JPM? Of course not. But it makes for a good 3 hours of theater.
- JPMorgan Report Piles Pressure on Dimon in Too-Big Debate (BBG)
- Employers Blast Fees From New Health Law (WSJ)
- Obama unveils US energy blueprint (FT)
- Obama to Push Advanced-Vehicle Research (WSJ) - here come Solar-powered cars?
- BRICs Abandoned by Locals as Fund Outflows Reach 1996 High (BBG)
- Obama won't trip over Netanyahu's Iran "red line" (Reuters)
- Samsung puts firepower behind Galaxy (FT)
- Boeing sees 787 airborne in weeks with fortified battery (Reuters)
- Greece Counts on Gas, Gambling to Revive Asset Sales Tied to Aid (BBG)
- Goldman’s O’Neill Says S&P 500 Beyond 1,600 Needs Growth (BBG)
- China’s new president in corruption battle (FT)
- Post-Chavez Venezuela as Chilly for Companies From P&G to Coke (BBG)
"Equity prices in the US and Europe have been hovering at multi-year highs. To the extent that this reflects powerful policy easing, equity markets may have lost some of its ability to reflect economic trends in exchange for an important role in the policy fight to support spending." This is a statement from a Bank of America report overnight in which the bailed out bank confirms what has been said here since the launch of QE1 - there is no "market", there is no economic growth discounting mechanism, there is merely a monetary policy vehicle. To those, therefore, who can "forecast" what this vehicle does based on the whims of a few good central planners, we congratulate them. Because, explicitly, there is no actual forecasting involved. The only question is how long does the "career trade", in which everyone must be herded into the same trades or else risk loss of a bonus or job, go on for before mean reversion finally strikes. One thing that is clear is that since news is market positive, irrelevant of whether it is good or bad, virtually everything that has happened overnight, or will happen today, does not matter, and all stock watchers have to look forward to is another low volume grind higher, as has been the case for the past two weeks.