JP Morgan: We Were Full Of Crap

Full Of It

$2 billion eh?  I said 20 when it was first announced, and maybe more.  Now it looks like after several “revisions” (all higher) the current “estimate” is that it might be $9 billion.

Morgan Chase & Co. (JPM) fell more than 6 percent in European trading after the New York Times (NYT) reported the lender’s trading losses from credit derivatives may total as much as $9 billion, exceeding the firm’s initial estimate.

Exceed?  By more than 400%, right?

Usually one would say that something “exceeded” an original estimate if it was 10 or 20% higher.  What’s 450%?  I’d say that the original “estimate” was a complete load of crap, or if you prefer, a lie.

Of course the other alternative is that Dimon had absolutely no clue what the final exposure might be and simply pulled a number out of his ass.  That wouldn’t shock me either.

The stock is down a buck pre-market.

Disclosure: No position but if we were to ever see anyone held to account for this sort of crap I’d go long handcuffs, leg irons and iron maidens.

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