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Just two days after JPMorgan (JPM) announced a massive $2B trading loss, Pimco's Bill Gross...

  • Saturday, May 12, 2012, 11:00 AM ET
    Just two days after JPMorgan (JPM) announced a massive $2B trading loss, Pimco's Bill Gross comes to its defense, calling it one of the “best-run banks in the world." It’s a decently capitalized bank, Gross says, with $120B of Tier-1 capital. "That’s 10.5%, which is higher than the 9% U.S. average.” And capital quality, according to Pimco, is what you need to trust most in a situation like this.
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This news story has 15 comments:

  • Maybe Gartman should read this.
    11 May 2012, 09:16 PM Reply Like
  • I'm sure they are Cronies, sharing common interests in some circles.
    11 May 2012, 09:16 PM Reply Like
  • ((((poof)))) That's it?
    Maybe the meat is after the jump?
    It's not there....don't bother...
    IBD and WSJ has columns; apparently, banks are taking their cues from the alarms we all saw when first alerts from EU was being reported setting up the trades that would eventually go south. Not large enough to wipe out 1/2 of Q1 profit...but you can bet there will be job openings at JPM.
    12 May 2012, 10:05 AM Reply Like
  • Has Bill Gross seen their books?
    12 May 2012, 11:24 AM Reply Like
  • I don't think Jamie Dimon has seen all of JPM's books, let alone Sir William of Newport Beach.

    The Bill Gross comments may be correct in a broad brush stroke, but I don't think anyone has a clue how the trillions of notational on JPM's derivative books are going to behave when things go haywire.

    And that's the gist of the problem with these large complex TBTF institutions.
    13 May 2012, 12:50 AM Reply Like
  • I'll take a humbled Dimon over a strutting Progressive any day.
    PIMCO had to eat their spinach last year, and have done well.
    Now, it's JPMs turn, and of course the clueless investigate
    them because they fessed up. In the fantasyland of liberalism
    it's either all unicorns and skittles or there's a sinister plot.
    12 May 2012, 11:26 AM Reply Like
  • he's right

    Time to buy

    E
    12 May 2012, 11:29 AM Reply Like
  • Trust?
    Like in we are supposed to trust you, Bill?
    With your constant begging and shouting for another round of QE?

    Just where do you WANT interest rates to go to Bill?
    Negative 5 % enough for you?
    What about all us poor working slobs straining under the massive weight already foisted upon our shoulders by Bernanke and his standard of living killing QE!

    What about investors / savers who are being destroyed because they refuse to wander into this bastardization of an equity nightmare?
    JPM is a mess and deserves all the light of day that is about to shine all over it and its disastrous trade!

    Hedge?
    My eye pal!
    They played the same game you did Bill, and Jon Corzine did in his investors with arrogance and disregard to the lives he destroyed!

    Corzine should be prosecuted to the full extent of the law and rot in jail with Gary Gensler (another former Goldman alumni just like Corzine), and all the rest of the dirt bags that have destroyed investor confidence forever!

    Now we have the new and improved Stazi of Cass Sunstein deploying a permanent member into the failed C.F.T.C. so as to re write all the tomfoolery over at that nightmare of an agency!

    The Wall Street Journal reported this,(OIAR),"Office of Information and Regulation",which is Cass' new department, in such a small article you could have easily missed it, this beast is never sated!

    This republic is being brought down from the inside and it is being done with a complicit news media that borders on treasonous!
    Investors beware!

    May the good lord watch over this fragile little experiment in freedom we call America
    12 May 2012, 12:10 PM Reply Like
  • JPM is very liquid,very solvent, and now trades 1.08 times tangible
    common equity per share...
    12 May 2012, 12:50 PM Reply Like
  • Better than the others but given how the market moved on Friday, they must've lost another $1.5 billion or more after the management call.
    12 May 2012, 01:03 PM Reply Like
  • I agree, Econdoc. Bought a few shares on Friday. Eight to nine points off from the day before, you get the best of 'too big to fail' banks, after acknowledging an embarrassing and most likely one-time to this degree loss. However, the macro view isn't encouraging so I'm looking at this as either a short-term trade or a small beginning toward a future larger position.

    Also in Gross' flagship fund, and yes, he went through his 'I was wrong' admission last year. Contrary to what some might think, the fund has been a performer since.
    12 May 2012, 02:08 PM Reply Like
  • JPM is probably a good buy, but would wait for better entry prices which may well be available by June-Aug/12.
    12 May 2012, 03:53 PM Reply Like
  • Why on earth would anyone buy a bank stock? 700 TRILLION in derivatives worldwide. Of which something like 400 trillion is held by the top 5-6 US banks/ investment banks. So many great businesses out their generating real earnings and profits without the use of GAAP accounting tricks
    12 May 2012, 04:58 PM Reply Like
  • Just shows what a "genius" Bill Gross is.
    Dimon was very lucky in 2008, that's it. Somebody had to survive this beter than the ave. That's is the definition of 'ave' some are above some below.
    Ford did better than GM - well, one of them has to do better than the other !!!
    All the guys who predicted 2008 told us we have a 100% for depression in the Summer of 2011.
    When you have, every single week, 10+ analysts predicting the end of world, than on every crash 10 people will be right about this.
    What about the 1000's of doom guys that were wrong this Summer - INCLUDING GROSS !!!! check it out, the nonsense that this guy said.
    Millions of investors sat out the Oct 11 => Mar 12 because of these guys. Gross and the likes.
    It's a roulette, and CNBC, and Bloomberg give these guys coronations. unbelievable.
    The whole financial sector is being admired by the business media.
    Every sentence they blabber is a headline
    These guys have not actually done anything in their lives.
    They are gamblers, and not very good at it either
    There are some CEOs which are worth listening to
    AAPL, SBUX, GOOG, CAT, ex-COST, AMZN... and I'm sure a few others. They are interesting, different, creative, innovative, they have some unusual and very successful ideas.
    The fact that we don't hear them on JPM, just proves how much smarter they are than the financial guys.
    12 May 2012, 05:03 PM Reply Like
  • The government has made it very difficult for banks to make money trading for their own account so JPM took a bigger risk and lost the bet!!!!!
    12 May 2012, 09:39 PM Reply Like
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