In yet another hit for both the administration's trustworthiness and the hope of some spin-off of the GSEs, the WSJ reports that the Federal Housing Administration's projected losses over 30 years could reach as high as $115 billion under a previously undisclosed stress test.
Earlier today, as part of our JPM earnings recap we observed that "VaR plunged from $106 to $62" and wondered if it was just just "another excel copy/paste error" which as we reported previously, is what JPM's internal audit attributed much of the confusion surrounding JPM's VaR calculation around the time the London Whale blow up nearly doubled the firm's VaR.
JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon sought to hide escalating trading losses that surpassed US$6.2 billion, misled investors and dodged regulators as a “monstrous” derivatives bet deteriorated last year, a Senate probe found.
Regulators are trying to clamp down on rogue traders like JPMorgan Chase's Bruno Iksil, nicknamed the London Whale, who amassed large positions in credit derivatives as part of a complex trading strategy that eventually soured.
The Banco de Portugal, or the Portuguese Central Bank, intends to set up a rescue-plan for Portugal’s largest bank – Banco Espirito Santo SA (ELI:BES). The Central Bank plans to divide the ailing bank’s operations into two distinct wings. The part with struggling assets will remain under BES control, while the ‘healthy’ segment will be spun off into a new bank.
The FHA's projected losses could reach as high as $115 billion over 30 years under a previously undisclosed stress test conducted last year to determine how the agency would fare under an extremely severe economic scenario, according to documents reviewed by a congressional committee.