By Stock Gazer:The ongoing investigation into rigging in the foreign exchange market led to a $1 billion hit in terms of legal fees for JPMorgan Chase & Co. (NYSE: JPM). Investor confidence also took a hit as shares fell alarmingly. JPMorgan is still fighting the allegations of rigging in the forex market and is negotiating foreign exchange settlements over a number of platforms.
ChartProphet submit:The JP Morgan (JPM) trading blunder could result in a $100 billion loss, a contagion of its massive portfolio, and even the wipeout of its entire asset base. Even worse, these extremely risky and potentially-illegal actions on behalf of the CIO office and the "London Whale" could be the unexpected "shock" that breaks the market, derails the Fed's huge monetary stimulus, and sends us back into a global recession.
The company’s loss is a stark reminder that the banking system remains vulnerable to market shocks and has heightened concerns that big banks continue to make risky financial bets that could threaten the economy.
By Michael T. Snyder: When news broke of a 2 billion dollar trading loss by JPMorgan (JPM), much of the financial world was absolutely stunned. But the truth is that this is just the beginning. This is just a very small preview of what is going to happen when we see the collapse of the worldwide derivatives market. When most Americans think of Wall Street, they think of a bunch of stuffy bankers trading stocks and bonds.