More from Easy Street

Most Recent

Will New York be next for the fracking-fueled job boom?

Sep 18, 2012
A fracking-fueled job boom has erupted in parts of the U.S. and wages of gas workers have increased. But in New York fracking is banned. That hasn’t stopped an upstate New York school from offering training courses for work in gas fields, because many expect Gov. Andrew Cuomo to lift the ban.
Posted In: fracking, New York, natural gas

The Must-Read Wall Street Books of the Summer of 2012

Aug 29, 2012
With only a few days left until the fall starts, you can still get in some beach reading. Here are the best books about investing and Wall Street to come out this summer.

Explainer: The Romney Tax Documents, Part I

Aug 23, 2012 dumped a ton of data about presidential candidate Mitt Romney's finances. This is the background that may help you explain it.

Citigroup CEO: Kudos to Me on a Job Well Done

Aug 22, 2012
In a speech in Singapore, Citigroup CEO Vikram Pandit said the firm needed to be restructured after the financial crisis.

What NBC Can Learn from Wall Street Hubris

Jul 30, 2012
The peacock network has turned its mildly irritating coverage of the Olympics into a certifiable debacle. It's an old page in the Wall Street playbook.

LIBOR Pains: How Much Will the LIBOR Scandal Cost US Banks? $35 Billion.

Jul 17, 2012
Two fascinating pieces of research from Keefe Bruyette & Woods estimates how much American banks may be on the hook for as the LIBOR scandal grows.

50 ways to rig your LIBOR

Jul 16, 2012
As the scandal into rate-rigging grows, more theories and information are emerging about how, exactly, banks may have manipulated an important interest rate called LIBOR.
Posted In: LIBOR

JP Morgan's Trading Loss: The Essentials

Jul 13, 2012
JP Morgan announced the full scale of its disastrous "London Whale"loss to date. This is our primer on what you should know.

JP Morgan's Terrible, No Good, Very Bad Trading Loss

Jul 13, 2012
JP Morgan, already on the hot seat for a big $2 billion trading loss, admits that it lost more than $4.4 billion, and added that its traders lied about the size of the loss to make it look better.

JP Morgan Says Employees Lied About Size of Trading Loss

JP Morgan's highly anticipated earnings today kicked off with the firm's admission that its employees fudged the size of the firm's estimated loss on its London Whale trading bet, to make it look smaller.

Initially, JP Morgan said the loss would be $2 billion.

Now the firm is saying that just in the past three months, the trade lost $4.4 billion. The official earnings announcement is here.

But JP Morgan is also claiming in its official announcement that the trade lost money in the first three months of the year too.

In JP Morgan's 8-K filing with the Securities and Exchange Commission, which you can read in its entirety here, the firm says,

However, the recently discovered information raises questions about the integrity of the trader marks, and suggests that certain individuals may have been seeking to avoid showing the full amount of the losses being incurred in the portfolio during the first quarter. As a result, the Firm is no longer confident that the trader marks used to prepare the Firm’s reported first quarter results (although within the established thresholds) reflect good faith estimates of fair value at quarter end.

Translation: JP Morgan believe its traders lied all along about the correct value of the losses. These kinds of statements to the public are closely policed by the SEC. If JPM is correct about the alleged lies, regulators are sure to investigate for fraud, and you can expect investor lawsuits as well.

Conveniently, however, the restatement allows JP Morgan to push some of the losses from the London Whale into its first-quarter earnings, which will be restated - and won't be revealed for another few weeks, according to JP Morgan. That will make the second-quarter earnings, announced today, look better than they should.

Jul 13, 2012

About this collection

From American Public Media's Marketplace, a blog devoted to listeners and readers who want to understand and talk about Wall Street. This blog supplements our stream of Wall Street coverage with a Marketplace perspective by New York bureau chief Heidi N. Moore.

With Generous Support From...

Sustainability Coverage

  • The Kendeda Fund
  • Wealth & Poverty Coverage

  • The Ford Foundation