$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.