Jamie Dimon said it could get worse… and it is.The JP Morgan trading loss that was $2 billion four days ago is now $3 billion, report Nelson Schwartz and Jessica Silver-Greenberg in the New York Times.
Because every hedge fund in the world knows JP Morgan is stuck in a position so big that it can’t unwind it… and they’re betting against it.
Can JP Morgan fire those risk managers and traders who placed the trade all over again? Nope.
Can it claw back the massive bonuses it paid to those risk managers and traders in prior years? Nope.
The good news is that the taxpayer-subsidized Too-Big-To-Fail JP Morgan was expected to earn $6 billion this quarter. So it has only wiped out half of that profit so far. Another $3 billion to go…