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FBN’s Charlie Gasparino on J.P. Morgan raising its estimated losses from its Chief Investment Office and its impact on the bank.
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Charlie Gasparino for more -- -- -- area there.
Yep I'm here -- -- let's just unpack this a little bit yeah -- lost what 800 million dollars.
Not 800 -- -- 800 million.
That's not a huge loss for JPMorgan I think this is much more cover our occasional loss this -- is what I have a trading.
Edged up on their inventory that went down in value I guess what they can achieve that repeated -- -- -- the well.
Jamie Dimon is -- -- To this sort of stuff -- but guiding avoided the credit crisis because he's been away from risky investments you know he wasn't he wouldn't -- -- -- He didn't bet the farm on the the mortgage market.
Those risky mortgage bonds.
This is.
Betting the -- on mortgage bonds -- small this is a slow -- space what are what are seeing here but it is an embarrassment and -- My -- is that going to be management checked it out -- gotten this is gonna go.
But is going to be is going to be a guy who's responsible or -- Out which structural and probably get started and we'll find out who that is very shortly or you know -- -- There's there's management and there's there's there's trader -- I think this is.
-- it's Jamie Dimon and all those people are going to be out what the built in the next couple days you know least until they impacted such.
I think -- secondary issue on this is is interest -- and you know Jamie Dimon is a big proponent.
-- it's sort of mega bank -- universal banking model are that the only we have five really big banks right now problem.
And a lot of chatter blushed bright articulate that I talked about about breaking them up in some way.
Because when they're so big they are unable you're unable to -- that they -- they don't -- -- can't manage them.
You know what this is a photo be ample to be used by people -- say.
The lady JPMorgan should be broken -- in the sense that why do you need such a huge bank why why -- -- Peter -- security -- You know all the investment banking -- separated out.
From the -- between the commercial bank Hollywood walk last equal once once wanted.
But what went and eighty condition of the accused as two to promote that sort of -- I can.
-- interesting about this and you alluded to this earlier in on what your thoughts on -- It in the -- -- use the word sloppy yes.
And -- you know it was my feeling having covered these banks watching all the coverage of them over the last few years that JPMorgan Chase -- is the best of days.
That they had things under control they were always presented -- -- bank.
That we are doing -- Smart thing it's not been down.
-- -- doesn't respect -- expanding the guy I not all the rights career.
Held by a big guy but I -- whatever you know and -- -- I remember you -- -- spread -- the great -- are inevitable that global side.
If you look at Citigroup I believe Citigroup would have been voting with you out of -- they had on the bounce back in doubt and he -- stickler for risk and respect for for for risk management.
And you know this is something that -- should not now.
It would sort of big banks afflicted our portal and the final story we don't know the final story here exactly where it is coming from the lawsuit -- -- You're talking about a billion dollar lost one be right -- the numbers come across.
So this is a huge mega is is that this is temperature of the stock and it -- all 33%.
But ballot billion dollar -- at JPMorgan balance sheet.
You know it played -- anabolic you know it's.
And -- -- it -- report.
A hundred billion dollar write down now what do you make of that number.
Our particular four point two billion dollar write down right.
And yeah that that it -- -- -- and in my view community that the difference real numbers to look at this real -- -- you remember.
Morgan Stanley at the single biggest loss ever I believe journey to discourage or could be early stages of financial -- Where they look at each billion dollar write -- Right -- candidate investment grade dumping that that went wrong -- it was an initial.
Thought it was a proprietary trading believed they you know took a risk in the market.
-- -- -- Or little or that -- I think it's pretty big if they're kicking back tight little.
Particular attack the write down -- write that number and that's why the stock is off period about bet -- headline value the sports there's quite right up there then.
Which one of the bigger trading losses -- speed in history you know.
Beyond a single trader in your view this is go beyond just one trader -- making a bad trade.
It looks like it's a unit I mean that's what we're on -- in because you know they they've put out statements in com.
You know into sort of legal -- and you know it's it's it is it is a little you're even Jamie -- -- Not not -- -- orwellian double opposite with that spell out its sound like you know there's a couple mistakes made didn't matter of -- but it's close some -- which trading floor was a archer train slows the outlook on the rouble will which are we hadn't gone into effect yet -- problem yet -- -- still don't stop you know banks have balanced.
They have to step out cheap -- out of -- let -- -- cheaper tickets some degree of risk.
Because you you know do you think it might go one way the market but it goes the other way.
And so that so that.
-- -- -- Is there -- single person responsible for there's.
Probably not it's usually never when Morgan Stanley.
Suffered -- big trading brought that was -- -- 18 billion dollars there are couple traders involved but still we troops are ready and that the Q is basically program on back to yup that's right and then right at woman should say to recruit -- -- so we're some all the people.
So this well I have an impact in the bank absolutely.
I know -- Number to -- who you know nominal just -- She is responsible for is that a Microsoft conference -- -- find out -- but he JPMorgan people here.
-- shot three people I can't imagine it won't -- what is.
Well yeah Jamie Dimon learned that the feed sandy -- an honorable sandy while he's very well around.
