Bloomberg reports the firm "told traders who bet on commodities for the firm's account that their unit will be closed as the company begins to shut down all its proprietary trading" and will "eventually end all proprietary trading to comply with new curbs on investment banks." In July JPM axed about 40 prop traders and earlier this month, Blythe Masters told the commodities unit to calm the fuck down, assuring them that "no one’s going to get screwed. We’re not going to do crazy things on compensation at the end of the year.”
Call The JPMorgan (Whale Loss) Close (Updated)
Did Bruno Iksil make the bank -$2 billion? -$9 billion? -$20 billion? Was this all just a hoax and he actually didn't lose any money at all? JPMorgan will let us know tomorrow at 7AM. Standard Price Is Right rules, closest without going over. Guesses in by 4PM today. Winner will receive his or her choice of a visit from the sandwich fairy, a highly coveted whale bath toy, or an I heart Dealbreaker button.
Analysts Attempt To Call The JPMorgan (Second Quarter) Close
Despite Jamie Dimon's promise that JPMorgan will be "solidly profitable" for the quarter, some are skeptical given the growing estimates of Whale-boy's losses. According Mike Mayo, the bank "will only make $727 million...including $4 billion of losses in the unit that made the bungled bet [though] if the losses exceed $5 billion, JPMorgan could make an overall loss." Barclays' Jason Goldberg thinks things are gonna be okay here, and sees the bank making $3.3 billion, assuming you know who will have only lost it $3 billion when all is said and done. And yourselves? Start considering your predictions now, as come July 13, there will be a visit from the Sandwich Fairy and a coveted bath toy for whoever comes closest without going over. Will The Whale Swallow JPMorgan's Second-Quarter Earnings [Dealbook]