Back in may when the story broke of JPMorgan’s London Whale costing the company $3 billion in trading losses, there was great shock but asked the question could it be much higher. Today the figure looks to be getting closer to $9 billion. BusinessInsider reports as follows:

JPMorgan’s famous London Whale trading loss could spiral as high as $9 billion according to Jessica Silver-Greenberg and Susanne Craig at Dealbook.

This is a staggering amount, especially since in May people were freaking out at that might be as high as $3 billion.

…..

POLITICO’s Ben White notes astutely that it’s nice timing for JPMorgan to let this news leak on the day the SCOTUS healthcare announcement will be released.

The $9 billion number was actually scooped first by independent journalist Teri Buhl earlier this week.

Losses on JPMorgan Chase’s bungled trade could total as much as $9 billion, far exceeding earlier public estimates, according to people who have been briefed on the situation.

..

The bank’s exit from its money-losing trade is happening faster than many expected. JPMorgan previously said it hoped to clear its position by early next year; now it is already out of more than half of the trade and may be completely free this year.

As JPMorgan has moved rapidly to unwind the position — its most volatile assets in particular — internal models at the bank have recently projected losses of as much as $9 billion. In April, the bank generated an internal report that showed that the losses, assuming worst-case conditions, could reach $8 billion to $9 billion, according to a person who reviewed the report.

With much of the most volatile slice of the position sold, however, regulators are unsure how deep the reported losses will eventually be. Some expect that the red ink will not exceed $6 billion to $7 billion.

CNBC (Andrew Sorkin) is saying he reckons its more likely to be $4-5 billion. Lets wait and see.
There is always MaxKeiser’s view on what is happening.
As we’ve been saying for two years. JPM uses it’s own stock to collateralize naked silver short positions (echoes of Lehman and Enron). My analysis has concluded that liability from a rising silver price vs. loss of collateral value of the stock renders JPM’s balance sheet null and void when JPM’s stock price drops below the price of Silver. We’ve only seen this a couple of times since I made this call two years ago, BUT NEVER ON A SUSTAINED BASIS of more than a day or so. When the price of Silver popped over JPM’s stock price, the London desk quickly fabricated a few billion fresh naked silver shorts to tamp silver’s price down. Given this week’s revelations regarding JPM’s reckless balance sheet incineration the ‘crash jp morgan, buy silver’ trade has never been more important as a way to take down this financial terrorist. The SLA has been winning battles all along. Now we are poised to win the war as well. Bye-bye Jamie. NOTE TO HEDGE FUNDS: Sell JPM’s stock naked to Hell. This is the easiest money you’ll make this year.

 

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