Monday, November 1, 2010

JP Morgan Kills the Rally

This is ugly:

"U.S. stocks erased gains as financial companies turned lower following a report that JPMorgan Chase & Co. faces a regulatory probe over its dealings in mortgage securities, wiping out an earlier rally.

JPMorgan Chase, the largest U.S. bank by market value, lost as much as 1.2 percent after the website ProPublica reported that the Securities and Exchange Commission is investigating whether it allowed a hedge fund to improperly select assets for a $1.1 billion deal backed by subprime mortgages."

Quick Take

Little by little the fraud is getting leaked out to the public.  There are simply too many holes to plug at this point, and the public is finally learning that our financial system's accounting looks no different than Madoff's Ponzi scheme.

I'll be back with a full update later.


getyourselfconnected said...

Another paltry settlement in the works?

Jeff said...

Wondering about that.

Peter said...

I believe all is OK now. JPM said that they are very, very, very sorry and won't do it again.

Jamie Dimon was sent to his room with no dinner and desert and told to think about what he did.

Jeff said...

LOL peter

He needs a spanking too godamnit!