JP Morgan, Insolvent?

Posted by Jeff Carter
on July 17th, 2012

Interesting blog post on JP Morgan this morning. It sort of explains a little more on the MF Global debacle and why no one has been charged with wrong doing. It’s fair to question numbers at all banks. How many of them let the traders set their own marks? I am imagining how great my trading account would look if I was allowed to set my own marks, and how it would look nothing like the actual market!

Click over and read the whole thing. It doesn’t make $JPM look pretty. But which bank is pretty?

My point here is that JPM’s earnings reports are completely fictitious and fraudulent. And if I know this, it means that the people at JPM who are in upper management know this, Jamie Dimon knows this, many JPM board members likely know this, Bernanke knows this and people in the Treasury and SEC with some modicum of intelligence know this (Geithner and Mary Shapiro are too stupid). This gets back to the discussions about JPM that I used to have back in 2002 and 2003. We knew JPM was technically insolvent back then. Nine years later that level of insolvency is significantly higher by many multiples, which means the smoke being blown to cover it is substantially thicker. And worse, the tax payer and middle class wealth being confiscated to keep JP Morgan from collapsing is unimaginably large. This is why JP Morgan is being allowed to steal customer assets that were being used as hypothecated collateral at places like Lehman, MF Global and PFGBest. This will get worse – expect it.

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