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Surevest Capital Management CEO Robert Luna and Jeff Macke of Macke Asset Management react to Jamie Dimon's Senate hearing and give their outlook for ...
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Jamie Dimon fallout the outlook for stocks let's talk a couple of observers on this joining us now.
But on the whole matter is Robert Luna CEO of sure vast and Jeff -- At issue that he's founder of Bob -- asset management and he joins us on -- Jeff what's good start would you grade Jaime diamonds performance that they'll end.
Any blows I didn't.
Not even touch -- was bigger Albright they're gonna they're gonna ambassador -- and get all and its business.
By the end they're actually asking fiscal policy questions in what would you do mister Dimon it was an incredible performance -- Tyson asked.
He blew them out its -- in -- gonna Obama mean that it celebrated on the way out.
Okay but Robert I mean do you mean do you think that did you hear what you want to -- -- at a Jamie Dimon having a lot of us here.
In New York we're asking ourselves we didn't believe -- can hear exactly what these trades were because nobody wants a repeat the problems did you hear that.
I mean that absolutely not you know -- we work with individual investors out here in Phoenix and I think there's really listening to this testimony from Jamie -- on Capitol Hill.
There's a lesson to be -- for those investors as we talk about these complex tree is in the billions of dollars.
That was lost by JPMorgan and things that they and even understand what -- investing in I think that's today's investor really needs to get back to the basic fundamentals of investing.
Investing what they can understand.
Understanding what they own and having conviction in those positions because as he could see Jamie Dimon JPMorgan Chase.
These are large institutions they're gonna be just fine.
But yeah individual investor if they don't get right -- in there's no that's gonna be in there to give them -- bail out.
And as far as investing in JPMorgan stock what we wanted to hear not to have any interest whatsoever was at this positions being closed out and we can identify what type a lost there is right now we have no idea.
And yet Jeff -- JPMorgan shares up over 2% today during this testimony would you have investors by JPMorgan here no absolutely not I -- nabbed by any bank stock they have no idea Dennis that absolutely not I don't think Jamie Dimon himself could answer the question what are these hedges what happened.
And given to the point of whether or -- they -- asked better questions.
Obviously they should have the question is counterparty risk and JPMorgan unwind these trades I don't believe they can and until I get some sort of answer surrounding that I'm not buying any bank stocks whatsoever -- -- untouchable toxic area.
-- that's that's the new normal or elitist seems more more and particularly heard today from the senators of their gonna and I only.
-- of the Volcker Rule makes it to air which is -- -- be in July but they're gonna add a few more extra regulations of the local wal what does that mean for the financial sector in your opinion.
-- I'm with the regulators are always great to slam the -- after the dogs thirty Iran out of the -- got hit by the car I -- regulation is not the answer I mean think about it's not the regulators -- -- and brought this public he was Jamie Dimon who found this trade -- -- public and they're taking care what -- internal controls you know whether or not this -- -- that got out of hand.
I mean that's something I think JPMorgan -- to step up and deal with but the answer to everything has been more regulation -- and even understands the -- vocal rule I think -- -- alluded to that they'll Dodd-Frank is just a joke I mean we're a small investment firm.
We I don't see any regulation that's help protect our investors -- well I can tell -- is our legal costs are up by about 200% this year just to become compliant.
We and Robert had double up on you here if you -- a trader at a rival of JPMorgan.
What you do be doing everything you could right now to increase that two billion dollar loss to four billion dollar -- knowing that they're in trouble.
I mean I mean absolutely I mean the cards are on the table right now they know pretty much what positions JPMorgan's.
You know holding right now I guess from a risk management standpoint what's concerning is when they talked about models and back testing what can one -- could -- went awry what -- went wrong.
I mean you look at the financial markets -- we've had some.
Disarray markets have gone down back and forth but this is nothing compared to what we experience in 2008.
If they're having problems with these trades in the risk management position in this environment you -- knows what could -- -- that trade back in 2008.
Very concerning right now.
Najaf there's certainly weren't worse everywhere not only is there going to be exposure -- have betrayed.
-- this type of -- o'clock happening important sailor gold -- but also.
How big the loss could be it at JPMorgan what what numbers are you hearing on here and still lost their way north of ten billion -- that is this point if they're gonna got to meet up as London whale out there -- -- -- -- I'm floundering we've got this big huge piece of -- out there and I hope you sharks don't take advantage to nibble on us at all.
Are you kidding me they're going to get -- the problem here is not whether or not JPMorgan lose any money.
The problem is again counterparty risk their flip around half a trillion dollars.
Even -- JPMorgan winds that -- They lose because they can't collect they've killed all the sharks they they have nothing to eat it JPMorgan loses that bad well they're too big to fail.
Either -- my question is if -- stressed this system enough in either direction.
Do we fail at that point that's the real question which no one even got close -- asking -- because they're too busy asking mr.
-- and what he thought about fiscal policy going forward.
And our relationship with Europe this was just a circus Jeff -- you should have been in the room of the society able to continue finance opt out -- -- punish -- Maggie thank you to press Robert -- thank --
