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FBN’s Charlie Gasparino on banks reviewing their risk policies following J.P. Morgan’s losses.
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JPMorgan Chase CEO Jamie Dimon back on Capitol Hill in DC today to talk risk taking at this firm what water -- -- -- on Wall Street doing.
One Wall Street doing what it comes to really I mean truly managing risk and embracing that.
Charlie Gasparino and thanks for what are they doing -- every action to what is going on having this is kind of -- whenever there's a major event like this.
You have to expect Wall Street to sort of recoil -- -- to take a look at itself and from -- on the stand.
That's exactly what every major firm is doing Goldman Sachs Bank of America.
JPMorgan as you know who's gonna do so they're doing over the London will Morgan Stanley you name it Citigroup we've all been in contact we -- sources and Wells Fargo.
We've we -- -- Wells Fargo but they are one of the big ones -- -- systemically important bank.
Well all those six banks are from we understand what have launched major.
Examinations.
Of risk taking and a risk positions at the firm in light would happen -- JPMorgan why this.
I mean can pretty simple if the best -- in the business can miss it.
-- with 500 regulators or -- -- -- hundred elegantly there's.
Then anybody can happen so there is a major sort of what would you article crackdown examination.
Of internal risk of risk taking bookings and navel gazing and their risk controls now.
How have they found anything -- not tell me.
And you as you'll know if we do it if they found something I guess in their earnings -- if if if they come out and they do something -- -- and -- and announces surprise loss.
But that's what they're doing right now so you have -- -- -- it was that we we do what's more investors it is there more than a theoretical possibility.
And Morgan Stanley could find something on its balance sheet.
Yes okay so just know that when you are investing in financial stocks they're looking at -- now -- the way things are going.
If he saw somebody did the the hearings today.
Another brought another round of hearings at the London where trading -- a big loss from the investment portfolio in London at JPMorgan Chase gets -- to regulators on.
Was I I think it was incredibly eliminated but there's what one of the things -- regulators are saying is that that.
This -- risk taking that -- did or that that office did Jamie's a CEO he's not a you know physically doing it is.
In woman -- I'm not sure it ran the thing with Bruno is skill -- the couple of the guys whose names I can't remember what.
They were managing that -- -- if they had better disclosure about what they were doing.
The regulators would have now and I I don't agree with that I think that's kind of silly -- on the premises I mean.
This is a big thing that they're doing over there in London it to 350.
Billion dollar portfolio you should be asking proactively and some like that.
Be that as it may.
If anybody finds anything you know in his -- review you know there's going to be is going to be a lot of emphasis on disclosures so we could it's more than a theoretical.
Worry you could see some announcements -- That's Wells Fargo at the top price hit.
And you sit and watch out for ballot I mean not because you think that I think there -- that there is potential for exposure is that because -- of -- as a -- well you know listen they claim that they are the least risk of -- the most risk -- of the big banks.
I'm I only mention them that we leave them out of the list a lot they are one -- this is there one of the big boys they're one of the systemically important banks.
You probably also should should throw Barclays and there.
I do -- the Barclays is doing the same sort of review.
These are also -- big systemically important banks that we should look at we we tend to focus.
On the on off on the fire that we usually do but you know we should be should always -- wells and -- and there.
Big big companies and listen.
I think they all do the same sort of stuff there on the tremendous scrutiny now but you know -- when you're that big -- one of the things people forget is if you run your JPMorgan.
How did this 350.
Or 75 billion dollar.
It chief investment office portfolio -- to come about it came about because.
They were buying other banks that we do a lot of stuff where you bide your assets and you have this portfolio to invest.
And by the way when it's that big.
You have to take some risk -- you just can't like.
Put it in treasury -- to be put on treasury bonds.
Well -- interest rates move a little -- -- -- -- -- it -- meeting disclose that every -- I'm just saying that you have to take -- to go to -- how -- the -- if you think if you think he or you can -- -- -- money is nothing just put -- in the in in gold stocks or and that's even think about -- -- I mean everything at risk.
So you know remember it's not that it's easier said than done didn't not not trade credit default swaps -- Okay think -- Charlie Gasparino very much and so now everybody's nervous and.
Fearing for their thoughts it's gonna happen -- more than that the indictments and I distribute I give you my words of wisdom I don't make predictions.
