JP Morgan (NYSE:JPM) finally fessed up to the market and disclosed that the trading losses were $5.8 Billion. Long ways away from the $2 Billion they first came out with. What was that a working number or something? The stock traded higher today supposedly in relief the number is not bigger.
The question becomes how the risk compliance culture will change to adapt to the very expensive lessons that JP Morgan has just paid for.
Warren Buffett claims that JP Morgan is doing all the right things. Closing the barn door after the horses have bolted for god know where, if you ask me. you have to ask yourself why did Warren Buffett feel a need to opine. does he have insider information. Probably not. But his opinion does hold sway and he does have a big hunk of Wells Fargo (NYSE:WFC) and Bank of America (NYSE:BAC). The banks are inextricably linked together. So by throwing in his two cents on JP Morgan he is helping out his other two investments.
But Warren, really why did you have to go public and stay stuff. No one is doubting your acumen. Your deals with Wells Fargo and Bank of America should pay big in time. So you must have a short-term reason?
George Gutowski writes from a caveat emptor persepctive.