Bonus the "London Whale"?

Discussion in 'The Back Room' started by Motorcity Gator, May 12, 2012.

  1. Motorcity Gator

    Motorcity Gator Well-Known Member

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    The trader in London supposedly responsible for huge trades contributing to the JP Morgan 2 Billion dollar loss announced yesterday is probably in line for receiving millions in bonus money for being such a skillful handler of such huge sums of cash for his firm.

    I have been told in the past that he deserves such bonuses because his company can't survive without him......and no one else can do his job like he can.

    http://www.foxnews.com/us/2012/05/12/jp-morgan-2b-loss-renews-calls-for-stricter-financial-oversight/

    I say ********.,....he and his bosses that called for such nonsense need to be fired and JP needs intense regulation just as much as the others on Wall Street because obviously their recklessness and greed can jeopardize everything for the rest of us if left to their own foibles and folly.
     
  2. JO'Co

    JO'Co Well-Known Member

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    :roll:
    You mean the politicians who mishandle trillions are going to regulate the bankers who mishandle billions? Does it ever occur to you that the bankers will just buy off the politicians and then we'll be right back where we started from? In China, everything is regulated, including the banks. The result, after 63 years, is that the bankers and the Communists have become the same people.

    ...The Pigs Are Walking On Their Hind Legs......JO'Co
     
  3. gipper

    gipper Well-Known Member

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    And the inept socialist who's been driving this country into financial ruin is running for reelection. SO???
     
  4. Motorcity Gator

    Motorcity Gator Well-Known Member

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    ....my what a short memory we have here.... :roll:

    Those who can't remember the past are doomed to repeat it.

    Appropriate if you think what happened in 2008 and what happened with JP Morgan recently are just fine and we should just let bankers be bankers.
     
  5. gipper

    gipper Well-Known Member

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    Today, 12.8 million Americans are unemployed, 8.2 million cannot find enough work, and 1.1 million have given up looking for work altogether. Unemployment still remains above 8 percent

    Obama promised the stimulus would not only have a large impact but also an immediate impact. "We've got shovel-ready projects all across the country."Those jobs never materialized, and it was not for lack of workers—or shovels.
    Since Obama took office, 6.3 million Americans have fallen into poverty.
    The "green economy," Obama vowed, would create millions of jobs. The Energy Department has handed out $35.2 billion in stimulus money to jumpstart the clean energy industry, but it's created more red ink than green jobs.
    My memory is just fine. And fortunate for me I can actually see what's been happening in this country for the past 3+ years.
     
  6. Motorcity Gator

    Motorcity Gator Well-Known Member

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    Yeah.....things were going just fine before that dastardly Obama took over....
    :lol: :lol: :lol:

    Let's see......if my own memory serves me correctly you lived in Detroit in 2008 same as I did right? Did you ever have Channel 7 Action News on in the morning while getting ready for work?

    Nothing but a daily dose of the worst financial news as I slowly and tortuously watched my livelihood slip away and there wasn't a damned thing I could do about it before I finally got the bad news myself two weeks before Christmas.

    That kind of **** you don't forget.
     
  7. gipper

    gipper Well-Known Member

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    The auto industry was heading for a cliff for a number of years before 2008. If you haven't read the book Crash Course I'd recommend it. The costs for pensions and health care benefits for retirees were reaching the swamping point. Then there was the job bank where employees showed up and played cards all day because there wasn't an assignment for them.
    Yeah things were bad in this state. Of course that didn't stop the fools who live here from reelecting Jennifer the idiot for a second term. Just like Obama her only concern was making sure that governmental and auto union folks kept the good time rolling. Yeah, I remember 2008.
     
  8. BuckeyeT

    BuckeyeT Well-Known Member

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    Classic example of political stagecraft in action......

    As the federal regulatory agencies are continuing to try and codify their newest monstrosity - Dodd-Frank years after its passage, Morgan announces a loss on a hedge and it becomes headline news and the anguished cries of armaggeddon arise from all the familiar sources.... :roll:

    Putting the trade in perspective it represents a mere 1% of Morgans capital base and 2%% of its 2011 revenues and 7% of its pre-tax earnings.....by most accepted standards, it would not even be considered material to their business and they will likely show 2012 earnings of $18-$20 Billion.....I think they are going to be just fine.......carry on.
     
  9. Motorcity Gator

    Motorcity Gator Well-Known Member

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    And what about the bonuses for gamblers like the "London Whale"?

    ....Ok with you?

    The auto industry always managed to pull out of it's troubles until the collapse of the financial industry and the subsequent shriveling up of available credit and loss of jobs and equity everywhere. With those circumstances they had no chance.

    Our differences seem to get down the fact that in spite of the deepest and most damaging recession since the Great Depression you GOP guys don't want any of the blame for it and you would like to return to the mechanisms in place just like they were in the years leading up to that recession with no restrictions.

    Well those days led to an abysmal failure except for the top 1% of wage earners who continue to widen the gap and they were a disaster for the
    middle class.
     
  10. gipper

    gipper Well-Known Member

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    I don't own stock in JP Morgan or Chase. If I did I'd care.

    Albert Pujols is getting over 20 million dollars. OK with you?

    Complete ********. Ford was run by a competent CEO and managed to survive by anticipating rough waters.
     
  11. Motorcity Gator

    Motorcity Gator Well-Known Member

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    Ford survived in part because of the failures of GM and Chrysler.

    They were perceived as a "safe" buy.......as opposed to the endangered and talked negatively about daily aforementioned other two.

    If Pujols sucked to the extent that the London Whale obviously sucked at his job he wouldn't be getting that 20 million except for his guaranteed "entertainment contract". If performance bonuses were the basis for his contract then he would not be paid the 20 mil unless that performance was achieved.

    Losing a significant part of 2 billion for your firm doesn't seem like achievement to me.
     
  12. Sid

    Sid Well-Known Member

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    Huh? Clearly absent is an even basic understanding of economics.
     
  13. Motorcity Gator

    Motorcity Gator Well-Known Member

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    Ford siphoned off sales that GM and Chrysler were losing because of the crisis and uncertainty they were in and suffered less of a sales volume loss than did the other two by far although it was still a weak market in 2008 and 2009 even for Ford.
     
  14. George Krebs

    George Krebs Well-Known Member

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    Ford makes a superior product. They have several models that have endured the test of time and are still popular. They did not take TARP which made them very popular with consumers.

    Superior product. Superior management. Competitive pricing. That's why they survived and thrived.
     
  15. Sid

    Sid Well-Known Member

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    Clearly more than a basic understanding of the principles of economics.
    What sales? Car sales plummeted. No one was buying cars, much less switching makes.

    The more you write, the more you reveal how little you know and how much your opinions are influenced by your bias.
     
  16. gipper

    gipper Well-Known Member

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    From Wikipedia
     
  17. Motorcity Gator

    Motorcity Gator Well-Known Member

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    Ford had also learned a lot from it's near brush with death over the Firestone tire crisis a few years earlier and had set aside 25 billion for a crisis response fund.

    Smart thinking but one that came about because of pain already experienced and not because Ford execs were just that much more astute than their counterparts at GM and Chrysler.
     
  18. gipper

    gipper Well-Known Member

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    Please!!! Young Ford stepped aside and let Mulally take over. Ford's leadership was inept. The difference was, they realized it and brought in someone who could do the job right. The brought in someone from outside the "auto culture." Mulally came in from Boeing and knew how to run a company correctly.
     
  19. BuckeyeT

    BuckeyeT Well-Known Member

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    First thing I would do is to look at both sides of the equation.....what has been reported that JPM will be has realized a loss from hedging position. What we have not been made aware is the total results from his efforts in this calendar year or years past....given the size of Morgan's balance sheet, it's not out the question that the guy and his trading/hedging desk have added to the bottom line and shareholder wealth in aggregate. From there I would begin my assessment.......not scream in anguish due to a loss in a hedging position.

    Again in perspective, Morgan charged $8 billion dollars against earnings in 2011 for losses and has set aside reserves for this very purpose in excess of $28 billion.....this is a normal cost of doing business for them, not a material event at all......if you're going to go apeshit because Morgan took a $2 Billioin loss in a hedging postion, 1% of their capital when they have $36 Billion they have set aside to cover such losses, you might as well just nationalize them.....it's nonsense. Pure politics......
     
  20. JO'Co

    JO'Co Well-Known Member

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    The London Whale...

    http://www.reuters.com/article/2012/05/11/us-jpmorgan-iksil-idUSBRE84A12620120511

    http://blogs.wsj.com/marketbeat/2012/05/11/j-p-morgans-london-whale-and-other-disastrous-trades/?mod=google_news_blog