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.
Drastic drop in oil prices was a shock to the global economy in 2015. The oil glut has resulted in uncertainty in the oil industry and banks that have financed expensive drilling projects. Mixed performance exists in various sectors of the economy, but the preemptive measures taken by the large cap banks raised concerns in the market. With the release of the recent earnings results, banks have disclosed the creation and expansion of loan loss reserves for their energy portfolio.
The preliminary US$13-billion deal set by JPMorgan Chase & Co CEO Jamie Dimon and U.S. Attorney General Eric Holder has hit a stumbling block, a person familiar with the talks said on Tuesday.
In a draft settlement circulated late Sunday, JPMorgan sought a provision that effectively shut down any criminal inquires into the bank’s mortgage bond business apart from an investigation from California prosecutors the bank has already disclosed, the person said.