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Mitchell Eichen, Risk 3.0 Asset Management CEO, on the losses JPMorgan is facing and the Facebook IPO.
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These things before let me turn to -- -- -- who -- the founder and CEO of the MDE group he's got more than a billion in assets under management.
You -- on JPMorgan we don't as a loss carry you as we think it's a systemic at all.
I don't think it's -- -- -- I think what you have in -- -- earlier I think it's a bit of political witch hunt because JPMorgan's private company that most private money.
And don't actually it did but you I think the differences that.
You people are acting like they're surprised -- just been through the Lehmann brother situation.
And deal if -- -- three billion dollars in profit nobody is gonna be saying anything so.
But investments are not a free lunch you have symmetrical risk you can make money you could lose money -- -- can putting on a major hedges and before you what's gonna go against you.
Shareholders upset but if if you're absorbing the loss is a private company do what you want let me get to the other huge story of the day and that is FaceBook.
To our viewers Mitch -- is the financial guy who turned down shares of FaceBook so you have the chance to purchase the -- early.
You're ago we were called and there was so -- putting together a private partnership to buy FaceBook and the internal prices -- 35 dollars a share.
And I don't want -- for a couple of reasons one I'd want to own the private partnership because I really didn't know you know.
About the transparency within the partnership and we think the partnership risk.
That having been said my feeling is when you having so many insiders sell their shares.
You know then I don't wanna be owning them at that point talks not a good sign -- it's it's not a great sign and the fact that the offering keeps increasing inside -- more more people keep putting their shares into the offering.
Troubles me a little bit I think there's -- this is a great company.
It doesn't mean that over the near term is going to be a great price and that clearly of revolutionized that created -- The social space and they've revolutionized that so they're gonna make a lot of money over time but a lot of that growth is likely priced into the price -- -- Peter.
Aren't some people of already made a lot of money and not just Mark Zuckerberg and what are they doing with that money.
-- -- some of -- want to make sure they don't pay any taxes are ever minimize their tax bill on that money let's put it that way as you know we reported earlier today -- That senator Chuck Schumer.
Announced legislation that would up punish people like -- marked by Eduardo -- run one of the founder co founders of FaceBook.
Whom were announced the US -- citi's citizenship and then moved to another country.
He had he moved to Singapore back in 2009.
But we did get a statement from severance today -- -- he said quote my decision to expatriate was based solely on my interest and working and living in Singapore -- since 2009.
I am obligated to and will pay hundreds of millions of dollars in taxes.
To the United States government is referring here to the so called exit tax that was enacted in 2008 for people who I give up the US citizenship and have a lot of money -- Hey you know what that you're allowed -- -- Peter thank you very -- much Peter Barnes closing bell ringing.
In about 49 minutes what will tougher bank regulations from Washington.
Obviously this is.
Getting more talked about because of the JPMorgan situation but what.
-- mean for your investments.
-- -- has his finger on the pulse inside the beltway Washington DC that its next.
