JPMorgan's (JPM) Enemies Jawbone While Dimon Loads His Bazooka
Tweet Send to a Friend
Get Alerts JPM Hot Sheet
Up)
Trade JPM Now!
There were several interesting developments in the JPMorgan (NYSE: JPM) drama today. Michael Platt, founder of BlueCrest Capital, told Bloomberg that JPMorgan's losses in the credit market could get worse if the European debt crisis worsens. It should be noted that Platt is anything but a neutral party.
His firm took positions against JPMorgan after seeing "anomalies" created by the London Whale's $100B trading position. That was when Platt and other hedge funds decided to turn the screws.
For his part, Jamie Dimon, the acclaimed CEO of JPMorgan, reloaded his bazooka so to speak. Today he announced that JPMorgan was suspending the company buy-back, estimated at $15B for 2012 and 2013.
Dimon said the bank intends to restart stock buybacks once it has replenished the'lost capital', which seems to be Dimon's way of saying he has no intention of closing out the 'London Whales' trades anytime too soon. It should also be noted that Bruno Iksil is still working for JPMorgan, and he is likely working very closely with Jamie Dimon as the company digs its heals in, preparing to do battle with Platt and other traders who have taken positions against them.
Last week, JPMorgan's position worsened by another $1B, meaning they are approximately $3B in the hole on the trades, and there are calls for Dimon to resign.
Interestingly, Platt is a former trader for JPMorgan. He said his hedge fund took its positions against the bank "in the normal course of our business" and "not looking to try and cause them any problem."
In any case, it appears round number two of the battle has just begun.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
His firm took positions against JPMorgan after seeing "anomalies" created by the London Whale's $100B trading position. That was when Platt and other hedge funds decided to turn the screws.
For his part, Jamie Dimon, the acclaimed CEO of JPMorgan, reloaded his bazooka so to speak. Today he announced that JPMorgan was suspending the company buy-back, estimated at $15B for 2012 and 2013.
Dimon said the bank intends to restart stock buybacks once it has replenished the'lost capital', which seems to be Dimon's way of saying he has no intention of closing out the 'London Whales' trades anytime too soon. It should also be noted that Bruno Iksil is still working for JPMorgan, and he is likely working very closely with Jamie Dimon as the company digs its heals in, preparing to do battle with Platt and other traders who have taken positions against them.
Last week, JPMorgan's position worsened by another $1B, meaning they are approximately $3B in the hole on the trades, and there are calls for Dimon to resign.
Interestingly, Platt is a former trader for JPMorgan. He said his hedge fund took its positions against the bank "in the normal course of our business" and "not looking to try and cause them any problem."
In any case, it appears round number two of the battle has just begun.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- JPMorgan (JPM) Shareholders Support Dimon in Dual Role
- JPMorgan Chase Declares Common Stock Dividend and Reports on Preliminary Vote Results at Annual Meeting of Shareholders
- Like Microsoft (MSFT) Xbox 360 Games? Don't Buy an Xbox One...
Create E-mail Alert Related Categories
Insiders' BlogRelated Entities
JPMorgan, Jamie Dimon, Hedge Funds, BlueCrest Capital Management
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
