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Jp Morgan - Can Somebody Summarise The Origins Of Their Profits?

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With J P Morgans announcing a huge rise in profits I want to know what are their specific activities that generated the bulk of those profits?

And of any zero sum trading activities, who are the losing counterparties?

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With J P Morgans announcing a huge rise in profits I want to know what are their specific activities that generated the bulk of those profits?

And of any zero sum trading activities, who are the losing counterparties?

A few days ago, someone stated on here they had revised loan provisions. Voila! Instant profits and bonuses. Other than that, no idea.

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I'll get the ball rolling...

They create incredible volatility in all currencies and asset classes, under the guise of market making and liquidity provision. Then they exploit the victims with the predatory marketing of derivatives contracts - OTC or otherwise - to mitigate the volatility that is otherwise a hindrance to normal commerce. These derivatives are apparently collateralised by Central Banks and taxpayers.

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I read that none of the big four banks in the US lost any money at all in the last quarter of trading activities on any trading day at all.

They ALL gained every day.

now tell me the market isnt fixed by HFT and QE

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There's a table here. They appear to have found $2b or so in adjustments to their provisions for bad loans in the last quarter. i.e. they've 'made' $2bn simply by reducing their expectations of write-offs. :lol: Bonuses all round!

http://www.reuters.com/article/idUSN1413792520110114

and here at AV

http://ftalphaville.ft.com/blog/tag/jp-morgan/

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Silly people: why do you ask where all this money miraculously appears from: The talent and sheer bloody genius gap between them and the rest of us is so great that none of us could possibly hope to understand, even if they could find time in between being so extraordinarily talented to explain it to us.

Or, for those of you who don't believe this to be true, there are basically two possibilities:

A) essentially, they stole it. From your pensions, from your taxes, from merging two companies and sucking all the value out of at least one of them, from the fruit of your labours etc. or

B) A wizard did it (waved his magic wand and it miraculously appeared).

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J P Morgan have over 70 trillion dollars of derivatives, ( probably not very well regulated ), which gives lots of opportunity for creative accounting.

Crash Morgan, buy physical silver.

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From 1999 onwards mortgage-backed securities, started to be repackaged into CDOs, creating a tranched, packaged product each component of which was itself a tranche of a packaged product.

Of course putting mortgage-backed securities inside CDOs for the first time, without having rated the AAA mortgages was fraud.

In 1999 Bayerische Landesbank, packaged a staggering $14 billion of bundles of mortgages, via JP Morgan.

This was the first time CDO's had been used as a 'wrapper' for mortgage backed securities.

Followed by the great bankruptcy, followed by the great theft, from the people, by the banks, sponsored by our own governments.

But do not complain or you will be beaten by the police, publicly slurred and disgraced, labelled as a nutter, then dropped down a hole, or imprisoned.

This is called Democracy.

JP Morgan and the Great Silver Caper

Edited by Dan1

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There's a table here. They appear to have found $2b or so in adjustments to their provisions for bad loans in the last quarter. i.e. they've 'made' $2bn simply by reducing their expectations of write-offs. :lol: Bonuses all round!

http://www.reuters.com/article/idUSN1413792520110114

and here at AV

http://ftalphaville.ft.com/blog/tag/jp-morgan/

This story made my blood boil and the reporting was a disgrace (as seems to be par for the course with all things ‘crash’ related).

Low interest rates, and therefore lower debt risk, created an environment in which these banks can claim huge profits. This supposedly allows them to justify their bonuses.

Where’s the headline that reads the Nation’s savers pay the cost of Banker’s bonuses.

or,

A Nation’s tolerance of high inflation pays for Banker’s bonuses.

This whole situation is an insult to everyone in the country and yet the media let it ride, in fact they promote it as a positive sign of recovery.

Rant over!

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Silly people: why do you ask where all this money miraculously appears from: The talent and sheer bloody genius gap between them and the rest of us is so great that none of us could possibly hope to understand, even if they could find time in between being so extraordinarily talented to explain it to us.

Or, for those of you who don't believe this to be true, there are basically two possibilities:

A) essentially, they stole it. From your pensions, from your taxes, from merging two companies and sucking all the value out of at least one of them, from the fruit of your labours etc. or

B) A wizard did it (waved his magic wand and it miraculously appeared).

These are the City wizards & their magic "SpeLLs" :P

The Whizz-ard

You could call it the flawless code for the perfect fraud. Although not a software engineer and only a commerce graduate, B. Ramalinga Raju wrote a code that was simple, resolved the conflict for being seen as one of the biggest without being one and delivered riches. It was perfect because nobody got a whiff of the scandal till he confessed to it. By his own admission for seven long years—that's, 28 quarters—Raju inflated income, profits and cash reserves.

Between 2001 and September 2008, cash balance in the company rose from Rs 840 crore to Rs 5,312 crore.

The fraud amounted to Rs 7,136 crore which is a little less than the total assets of Rs 7,281 crore reported by the company in its March 2008 balance sheet.

The spell

The algorithm/virus that Raju authored infected the mainframe (the wand) of India's fourth largest software company and exposed India Inc to speculation and suspicion of multiple fiddles.

Indeed, Saurabh Mukherjea, head of Indian equities at the UK-based investment bank Noble Group, has in a recent report stated that "one in five BSE 500 companies could have accounting issues". Shockingly, he adds that attempts "to confront managements with facts resulted not in denial but threats of reputational damage to Noble".

One could quibble about the scale but not the existence of frauds. Every sentry leading to the ethical mount called corporate governance was caught napping.

The algorithm of this massive fraud has wrecked public faith in the institution of internal auditors, external auditors and independent directors.

http://indiatoday.in...html?complete=1

Edited by erranta

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With J P Morgans announcing a huge rise in profits I want to know what are their specific activities that generated the bulk of those profits?

And of any zero sum trading activities, who are the losing counterparties?

Dumb money: pension funds, governments (local and national), and dumb corporations.

Inducements are given to officials in these organistations to get them to make a deal at a price (or fee) that is favourable to the bank and not the customer, although it will seem like a good deal for the customer at the time.

Edited by MonkeyNuts

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This story made my blood boil and the reporting was a disgrace (as seems to be par for the course with all things 'crash' related).

Low interest rates, and therefore lower debt risk, created an environment in which these banks can claim huge profits. This supposedly allows them to justify their bonuses.

Where's the headline that reads the Nation's savers pay the cost of Banker's bonuses.

or,

A Nation's tolerance of high inflation pays for Banker's bonuses.

This whole situation is an insult to everyone in the country and yet the media let it ride, in fact they promote it as a positive sign of recovery.

Rant over!

question:

Is banking more of a fraud now than it was 10 years ago?

or 30 years ago?

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question:

Is banking more of a fraud now than it was 10 years ago?

or 30 years ago?

I only know that I am more aware now.

However, a capitalist model only works if you let poor businesses fail.

Once one bank was bailed they all were, once rates were lowered all banks were helped. I suppose I don't really care if it is more or less of a fraud, the problem is that it is wrong , really wrong, today, and yet it isn't talked about by most people.

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I only know that I am more aware now.

However, a capitalist model only works if you let poor businesses fail.

Once one bank was bailed they all were, once rates were lowered all banks were helped. I suppose I don't really care if it is more or less of a fraud, the problem is that it is wrong , really wrong, today, and yet it isn't talked about by most people.

The Banker scum have been actively lending £100's millions for Gekko-type destruction/grab the bonus of viable profit making UK businesses for decades.

They seem to have forgotten the less there are left in the country the less business they will have over the long term.

But hey, do they give a shit right now when they can retire and disappear with multi-millons scammed in little over a decade.

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The Banker scum have been actively lending £100's millions for Gekko-type destruction/grab the bonus of viable profit making UK businesses for decades.

They seem to have forgotten the less there are left in the country the less business they will have over the long term.

But hey, do they give a shit right now when they can retire and disappear with multi-millons scammed in little over a decade.

Which is worse : Blairite scum or banker scum?

In my view one group was honest about its motivation, no matter how unappealing. The other was completely disingenuous.

Edited by LuckyOne

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With J P Morgans announcing a huge rise in profits I want to know what are their specific activities that generated the bulk of those profits?

And of any zero sum trading activities, who are the losing counterparties?

Governments and thus taxpayers.

If I could borrow money from a central bank at near 0% and then buy bonds etc. yielding a few percent with near zero risk then I could probably make a few billion here and there. It's a no lose gamble for them.

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Which is worse : Blairite scum or banker scum?

In my view one group was honest about its motivation, no matter how unappealing. The other was completely disingenuous.

Classic bankers defence- we may be corrupt but we are not as corrupt as the other guys. :lol:

Edited by wonderpup

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With J P Morgans announcing a huge rise in profits I want to know what are their specific activities that generated the bulk of those profits?

And of any zero sum trading activities, who are the losing counterparties?

Food Stamps.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
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      • up 5%



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