Tuesday, May 15, 2012
J P Morgan Catastrophe
J P Morgan Chase CEO Jamie Dimon said at an annual shareholder meeting in Tampa, FL today that the firm's recent losses won't have an effect on quarterly dividend payments, which are $.30 per share. This seems to prove that the Morgan bank trading loss, while immense from the viewpoint of your local barber, is really just the financial media counterpart to People magazine informing us of the latest event in the life of Snooki. The bank sold products to others that required it to make payments if certain conditions were met, insurance, in other words. The roughly $2 billion that Morgan lost wasn't piled up in the middle of Wall Street and set on fire. It was paid to customers that purchased derivatives. Incidentally, Morgan has over 270,000 employees world-wide, a little less than the entire payroll of the Ukraine government.