JPM Mismarked Hundreds of Billions in CDS
First we learned that manipulation of the LIBOR goes back decades and includes nearly every big bank.
Then we learned Gordon Brown dumped 400 tons of gold on the market, driving down the price to bailout a couple of American banks who had shorted the price and were badly out of position.
And now, the full story regarding JPM has surfaced:
On July 13, 2012, JPMorgan Chase & Co. reported that it will restate its previously-filed interim financial statements for the first quarter of 2012. The restatement will have the effect of reducing the Firm’s reported net income for the 2012 first quarter by $459 million. The restatement relates to valuations of certain positions in the synthetic credit portfolio of the Firm’s Chief Investment Office.
From Tyler Durden:
[W]e have just discovered that the two key components of the entire CDS market: the LIBOR base and market “marks” have been bogus at best, and realistically, fraud. And one wonders why no bank ever will let CDS trade on an exchange…
Next up: we learn that just like Lieborgate, so was everyone else doing just what JPM admitted to doing as well.
In other news, there goes the entire CDS market.
What’s the (supposed) valuation of that market. Doesn’t it end with a ‘T’ as in trillion, if I recall correctly ?
Yeah, and stick a 1 and a bunch of zeroes on the left. Of course, Tyler is foolish to thing a bunch of thieves would really disagree.
My Big TOE forum has a category for current events with a thread started in Sep. ’11, titled
be Ted Vollers, site admin.
The opening graph:
Fec, I suspect you will find many points of shared concern in the above quote. I know I do.
A nexus, just one, and there are many, from that thread to this post, is on page #59 by one Montana highlighting this:
24% of Wall Street Execs: We Need to Break the Law
The perspectives of Ted and Tom, the site proprietor, is in agreement on the seriousness of the evolving political acidity. Tom has recently wrote he ‘lives in a country flirting with Fascism’, to highlight that agreement.
I’ve never been a ‘real’ doomer, per se. My abstinence from that position is little, but significant. I can most certainly agree that CD mismarking is a systemic issue and needs to be addressed at that level.
I look forward to reading it. Thanks.