What's going to be interesting is how long they can hold this support.
Banks can't take on too much risk on their books.. especially in the post Dodd-Franks world.
Banks can't take on too much risk on their books.. especially in the post Dodd-Franks world.
A lot of people could thusly call that perfectly acceptable risk.
Exec resignations & the CEO apologizing doesn't sound like a lot of people are very accepting of the risks taken.
It's a big fraction, but it's just one quarters profits. It's not the destabalizing, company-breaking amount of money some people make it out to be.
JPMorgan has over a trillion dollars in assets on its books. The chicken-little nature of this has been a little silly I think.
JPMorgan is not out of the woods, they have to unwind their positions to an unfriendly market. This ordeal may also make them more risk adverse, but possibly less profitable in the short-term. Less profits, more losses, isn't going to make people very happy.
I don't think it's the end of JPMorgan, but acting like they have $3 - $5 billion in the couch cushions doesn't sound very rational either.
FB is being propped up to lure in "retail" investors. Retail investors == "muppets" == dumb money. If FB stock is so great then Goldman would be holding onto it themselves. Are they doing that? No. They are selling. $38 is their exit point. Anyone who's buying in will be left holding the bag. That is the whole point.