Professor Elam

Weekend July 14, 2012

Now that $2 B loss at JP Morgan is up to $5.8 billion. Is  Jamie Dimon still more worried about Europe than his own out of control trading group?  But here is the funny part. Amid five billion in losses, JPM announces that it will 'claw back' earnings from the errant traders. Are they serious, a few million in earnings to cover five billion in losses?  

It seems the traders were a bit slow in marking or admitting to their losses. One can just hear Captain Renault, What gambling in this establishment, I am shocked. 

 I suspect that along with continunig debacles like Madoff, MF Global, and Peregrine, see previous post, we will learn that the banks are out of control. Just this week we learn of the expanding losses at JPM, and Barclay's manipulation of the LIBOR rate. 

Is anyone going to jail?  Oddly Corzine is still out while Madoff is in and Peregrine is certainly on his way. Would Corzine's prominent status as a fund raising Democrat have aything to do with that?