Some morning reads:

• The Absolute Moron’s Guide to the Euro Crisis — Part II (New York Mag) See Part I here.
• Austrian minister says Italy too may need bailout (Reuters) see also How tiny Finland could bring euro crisis to end (Market Watch)
• JPMorgan Builds Vast Web of Staff, Financial Ties to Lawmakers (American Banker)
• Stock market is saying ‘Don’t fight the Fed’ (Market Watch) see also Forget What You’ve Heard About Stock Risk (Smart Money)
• Hedge Funds Saw $5 Billion Outflow in April: TrimTabs (Reuters)
Penny Stocks: Little Revenues, Large Losses, Negative Net Worth (Aleph Blog)
• This Moody’s Man Is Giving Banks the Blues (WSJ)
• As world economic growth ebbs, talk of new stimulus surges (Washington Post) see also Debt crisis: Bundesbank scuppers all talk of EU banking union (Telegraph)
• Hans-Werner Sinn: Why Berlin Is Balking on a Bailout (NYT)
• Jeb Bush’s heresy (Washington Post)

What are you reading?

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JPMorgan Builds Vast Web of Staff, Financial Ties to Lawmakers

Source: American Banker

Category: Financial Press

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

19 Responses to “10 Mid-Week AM Reads”

  1. Mike in Nola says:

    I am shocked, shocked that JPM has given so much to lawmakers.

    BTW, is Obama considered a lawmaker? They gave him $800k+ first time around. I suppose they were looking for hope.

  2. VennData says:

    wall Street’s vote: Romney by a landslide

    http://dyn.politico.com/printstory.cfm?uuid=3A603A4B-7015-4A3D-BBC3-40F0D5B3C892

    “… For three years, Wall Street’s been telling the world how much it can’t stand President Barack Obama. Now, thanks to campaign finance filings, it’s possible to put a price tag on just how much: Mitt Romney’s presidential campaign and the super PAC supporting it are outraising Obama among financial-sector donors $37.1 million to $4.8 million…”

    Wall Street.., I’ll take the opposite of these overpaid, value-destroying, lobbyist-employing, economy-wrecking, incompetent, sheisters every day of the week. After they got their bond investments in the banks bailed out then kept their pay rising!?

    Go ahead, get on their side GOP voter. You’re a Wall Street enabler.

  3. Seattle Chill says:

    Mike- Obama isn’t really a “lawmaker” anymore, as he no longer serves in the legislative branch.

    I would wager that Congress has by far the best risk-adjusted return of anything in JPM’s portfolio.

  4. AHodge says:

    Re Jamie
    given who is questioning and a worthless format.
    they aint laying a glove on him, he actually has a soapbox
    its the whole FCIC debacle replayed. from his testimony

    QUOTE (the CIO) also maintains a smaller synthetic credit portfolio whose original intent was to protect – or “hedge” – the company against a systemic event, like the financial crisis or Eurozone situation. Among the largest risks we have as a bank are the potential credit losses we could incur from the loans we make. The recent problems in CIO occurred in this separate area of CIO’s responsibility: the synthetic credit portfolio. This portfolio was designed to generate modest returns in a benign credit environment and more substantial returns in a stressed environment. And as the financial crisis unfolded, the portfolio performed as expected, producing income and gains to offset some of the credit losses we were experiencing.
    What Happened?
    In December 2011, as part of a firmwide effort in anticipation of new Basel capital requirements, we instructed CIO to reduce risk-weighted assets and associated risk. To achieve this in the synthetic credit portfolio, the CIO could have simply reduced its existing positions; instead, starting in mid-January, it embarked on a complex strategy UNQUOTE

    The above is the key lying and internally inconsistent part of Jamies testimony
    This Iksil position is widely understood to be SHORT and takes market losses if the credit environment is “stresses”. As for producing gains, im guessing these gains were from selling the option and taking in the premium without marking the losses?

    So the Qs
    not that anyone will insist-the regulators should

    Q Was the position a credit default swap?
    Q What was the swap? Originally. Was it net long or short?
    Q What was the source of your income gains on the swap you know so much about? Was it upfront premium for writing “CDS Insurance”
    Q Put another way, dude, how does a CDS make money in both more stressed and less stressed credit environments??? Sounds like a great investment you can’t lose on.
    Q If the original swap was reducing risk why does Basel 3 make you take it off?
    Q going forward if the credit environment becomes less stressed will you make or lose on your remaining positions
    Q there is any reason your “investigation” could not dig up these simple oversight answers here over 2 months later? Mr lying sack of shit.

    get off the stand or talk!!

  5. AHodge says:

    And one more Q
    as your own JPMorgan hedge fund reportedly had the other side of a small part of this deal.
    were they reporting comparable losses to the gains you claim 4Q 1Q?
    or making gains the way a long CDS position normally does when there is more “Stress”

  6. Mike in Nola says:

    Seattle: It was a rhetorical question, but recent Presidents until Obama have had more influence on what gets through Congress than any other single person.

  7. AHodge says:

    and Q
    Did you– JPM– including your hedge fund (possibly unconsolidated)
    carry a portion of this deal internally at two different prices and returns?

  8. formerlawyer says:

    Biofuel controversy. (see especially the comments) – I am still confused.
    http://oilprice.com/Alternative-Energy/Biofuels/The-Reality-Behind-the-Most-Common-Biofuel-Myths.html

    An infographic on Summer Reading (from Huffington Post)
    http://teach.com/great-educational-resources/summer-reading-flowchart

    “The universe we seeing playing out in space and time may be just the surface level, where we float like little boats while leviathans stir in the deep.” HP Lovecraft? No:
    http://blogs.scientificamerican.com/critical-opalescence/2012/06/11/is-dark-matter-a-glimpse-of-a-deeper-level-of-reality/

  9. VennData says:

    Exciting possible solution to screw over Larry Ellison, Apple, Microsoft and the rest of the patent trolls.

    http://defensivepatentlicense.com/

    Toss in your patents and you can avail yourself of all of the patents in the pool to nail the patent trolls.

  10. AHodge says:

    Jamie
    “I’m responsible”
    (for telling you nothing and misdirecting you while looking honest and helpful)
    for the chance to quietly blame the regulators and Basle 3
    for spreading enough money around to stage manage these stooge questioners
    And i am an efffing genius at my work–my stocks up today–shareholder value baby
    i will bonus myself for that tooo…

  11. nofoulsontheplayground says:

    Michael Pettis: “Will Globalization Go Bankrupt?”

    http://www.creditwritedowns.com/2012/06/will-globalization-go-bankrupt.html

  12. Jojo says:

    Robert Reich
    Why The Economy Can’t Get Out of First Gear
    Tuesday, June 12, 2012

    Rarely in history has the cause of a major economic problem been so clear yet have so few been willing to see it.

    The major reason this recovery has been so anemic is not Europe’s debt crisis. It’s not Japan’s tsumami. It’s not Wall Street’s continuing excesses. It’s not, as right-wing economists tell us, because taxes are too high on corporations and the rich, and safety nets are too generous to the needy. It’s not even, as some liberals contend, because the Obama administration hasn’t spent enough on a temporary Keynesian stimulus.

    The answer is in front of our faces. It’s because American consumers, whose spending is 70 percent of economic activity, don’t have the dough to buy enough to boost the economy – and they can no longer borrow like they could before the crash of 2008.

    If you have any doubt, just take a look at the Survey of Consumer Finances, released Monday by the Federal Reserve. Median family income was $49,600 in 2007. By 2010 it was $45,800 – a drop of 7.7%.

    All of the gains from economic growth have been going to the richest 1 percent – who, because they’re so rich, spend no more than half what they take in.

    Can I say this any more simply? The earnings of the great American middle class fueled the great American expansion for three decades after World War II. Their relative lack of earnings in more recent years set us up for the great American bust.

    http://robertreich.org/post/24974761785

  13. Clay says:

    Sober Look: “The Saudis Tightening the Noose Around Iran”
    http://soberlook.com/2012/06/saudis-tightening-noose-around-iran.html

    And, this excerpt on the Iranian economy which could possibly be approaching collapse:

    “The Israelis now believe Iran’s economy is near collapse.

    Arutz Sheva: – “The Iranian economy is near collapse, therefore it is time to continue to tighten the sanctions without letting up,” Finance Minister Dr. Yuval Steinitz told visiting the Italian Prime Minister Monday.”

    Pragcap.com: “Air Traffic – A Leading Deflationary Indicator” by Martin T. at Macronomics:

    http://pragcap.com/air-traffic-a-leading-deflationary-indicator

  14. formerlawyer says:

    @Clay:

    I don’t know, people have been forecasting the collapse of the economies of various countries for example South Africa in the apartheid era, whatever Rhodesia is now called in the modern era, Cuba even the United States – for years. It hasn’t happened. Call me sceptical.

  15. DrungoHazewood says:

    And to think Richard Shelby was one of the few to vote against the repeal of Glass-Steagall all those years ago. They’ve got him in their back pocket now, and he’ll serve for life.

  16. DrungoHazewood says:

    formerlawyer

    Don’t forget the white regime in Rhodesia from ’66-’76. South Africa, and leaks in the embargo kept that propped up for years. Israel bought Rhodesian chrome for years.

  17. GeorgeBurnsWasRight says:

    I’m reminded of famed Chicago columnist Mike Royko’s reaction the first time a city Alderman was caught on tape taking a bribe. Royko’s comment was that he always knew that votes were being sold, but he was shocked to discover how cheaply they were being sold. JPM spending about a half-million dollars in 4 years is the equivalent of the change they’d find in their cushions.

  18. Giovanni says:

    @JoJo I don’t agree with Robert Reich often but on this he’s partially correct. The reason the bust is so large though is that banksters were unleashed to pump debt up to unsustainable levels and Americans are just credit junkies going through withdrawal.