JP Morgan:The reason for this rare, extra commentary over a weekend is to focus on a couple of points which really stand out in their particular significance and are worth pondering in terms of what is coming down the road for financial markets.
The first is what we jumped all over on PLANET GATA from the get-go about the JP Morgan hedge trade flap gone wrong. It made NO sense from the very beginning to any of us that such a commotion was made over a $2 billion loss on a trade, for whatever reason, when they had just reported yearly gains of $18 billion. Clearly, Mr. Dimon’s public pronouncement, that caught the attention of the entire investment world, was only paving the way for future announcements that will be much more dramatic. All he was doing when he inferred the losses MIGHT get worse was protecting himself, as best he could, by going on the record....
Facebook: It was another Wall Street bailout — but this time the banks had to cough up the cash. Facebook’s underwriters propped up the social-network’s trading debut yesterday, as the shares threatened to crash through the initial public offering price of $38. The banks working on the massive $16 billion IPO, including Morgan Stanley, JPMorgan Chase and Goldman Sachs, did their duty by buying up large blocks of Facebook stock toward the end of the day to support the price.
Facebook shares opened up 11 percent at $42.05, and traded as high as $45, before running out of steam, disappointing investors hoping for a big first-day pop. The shares closed up just 0.6 percent at $38.23.
Without the bank bailout, Facebook’s IPO would have been a loser on the day, Wall Street insiders said.
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