If you entrust your money to JP Morgan Chase you will be perturbed to learn that the bank managed to have lost $2 billion due to errors sloppiness and bad judgement and that more losses are on the way. It did not lose the money because of some crooked employee; it lost it in what is the casino in which banks participate, hedging wrongly – in other worlds making best without, as every good bookmaker does, laying of appropriately to minimise loss potential.
If you do not entrust your money to JP Morgan Chase then I am afraid you are only in a marginally less bad position than the customers and depositors of the bank. You see the banks all trade with each other and with the hedge funds. If an institution like JP Morgan Chase can lose $2 billion so can any other bank or financial institution or fund. They are dabbling in a casino where they are trying to perfect systems to win all the time, but that cannot be.
The odd thing is that their shares fell by only 9% and that there is still a ready market in the shares of those companies whose core business is playing the casino.
Filed under: banking Tagged: | bank losses, casino banking, JP Morgan Chase
