Here we go again - banking crisis 2.0?

scorza

scorza

scorza

Caporegime
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http://www.bbc.co.uk/news/business-18030022

How bad will this get? Hopefully limited to one bank and not that serious but market confidence in all banks seems to have been hit and the noises coming from Mr Dimon are eerily reminiscent of 2008. Good to know that all those reforms to the banking system in the last four years have been put in place to stop things like this from happening.
 
You know what?. I couldn't care less.

And neither do 99.9% of the population any more because they are sick to death hearing about it.
 
scorza said:
http://www.bbc.co.uk/news/business-18030022

How bad will this get? Hopefully limited to one bank and not that serious but market confidence in all banks seems to have been hit and the noises coming from Mr Dimon are eerily reminiscent of 2008. Good to know that all those reforms to the banking system in the last four years have been put in place to stop things like this from happening.
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Did you actually read the article?
 
kgi said:
Do you have some inside knowledge to say that? Care sharing your sources with the rest of us?
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Yes in between writing his 10,000 posts he's a VP at Goldman Sachs so of course he knows.

Anyway, a quick glance at the figures for JP Morgan

Revenue US$ 89.660 billion (2011)[2]
Operating income US$ 26.749 billion (2011)[2]
Net income US$ 18.976 billion (2011)[2]
Total assets US$ 2.265 trillion (2011)[2]
Total equity US$ 183.573 billion (2011)[2]

shows that whilst $2bn is clearly a hefty chunk of cash, it won't "break the bank", as it were.

Banking crisis 2.no
 
Skull said:
Yes in between writing his 10,000 posts he's a VP at Goldman Sachs so of course he knows.

Anyway, a quick glance at the figures for JP Morgan

Revenue US$ 89.660 billion (2011)[2]
Operating income US$ 26.749 billion (2011)[2]
Net income US$ 18.976 billion (2011)[2]
Total assets US$ 2.265 trillion (2011)[2]
Total equity US$ 183.573 billion (2011)[2]

shows that whilst $2bn is clearly a hefty chunk of cash, it won't "break the bank", as it were.

Banking crisis 2.no
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More importantly those numbers show that with thousands of "bankers" working for companies like that, they very much aren't all losing 2billion, its a very very rare thing for someone to manage to lose that much.

As in EVERY single industry out there, some idiots will do stupid things, make a "play" going big and losing badly.

The more funny thing is, bankers still weren't responsible for the poor economy, and certainly not for the recession or the most likely incoming recession, the main reason this country is in trouble is the way its been run for the best part of 30 years but the last decade or so was greatly more responsible.

The odd banker for decades has made similarly huge **** up's, or similarly bad cheating, though I can't remember the name of the guy, what early/mid 90's(English banker, made a film about him) who lost a **** load but during a very strong economy and no problems... no one actually cared, no one feared a banking meltdown nor a recession.
 
Skidder said:
Good god people do betray their utter stupidity and ignorance with this 'banker bashing'. Pathetic.
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OcUK GD is one of the few places in the UK where the general public aren't overwhelmingly idiotic. While there's a fair amount of lolhausen nonsense, there's far more people who aren't taken in by it.
 
drunkenmaster said:
More importantly those numbers show that with thousands of "bankers" working for companies like that, they very much aren't all losing 2billion, its a very very rare thing for someone to manage to lose that much.

As in EVERY single industry out there, some idiots will do stupid things, make a "play" going big and losing badly.

The more funny thing is, bankers still weren't responsible for the poor economy, and certainly not for the recession or the most likely incoming recession, the main reason this country is in trouble is the way its been run for the best part of 30 years but the last decade or so was greatly more responsible.

The odd banker for decades has made similarly huge **** up's, or similarly bad cheating, though I can't remember the name of the guy, what early/mid 90's(English banker, made a film about him) who lost a **** load but during a very strong economy and no problems... no one actually cared, no one feared a banking meltdown nor a recession.
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You thinking about Leeson? The one who brought down Bearings
 
OP comprehension failure.


Of you want to look at a potential banking crisis JP Morgan Chase won't be it, look toward Spain if you are looking for something to salve your ideology.

JP Morgan Chase routinely make $5bn quarterly profits so it is not going to create a monetry crisis within the bank, let alone the wider banking community.
 
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singularity said:
It adds to the banking crisis
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Not especially - seeing how profitable and well-shored JP Morgan are. Trading losses happen all the time and aren't reported upon. Same with private equity and M&A deals that lose a fortune. It's part and parcel of investment banking. If this was to happen to La Caixa, Banca IMI or Straumur, then yes, it would add to the banking crisis, however a large institution such at JP Morgan can absorb such losses.
 
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