jimmy smith

Bigger is Not Better in Banking

regarding JPM: if Whalen is correct and losses are 4% of loans (big if) and JPM is average (big if), then they'd loose $58B. JPM has $131B equity (not including the $11B they just raised or the $25B coming from Paulson), so i'm not sure how he sees them becoming insolvent.

personally, i think this guy is contracted by some funds who are/will be short. if he can scare enough investors he and the hedge funds could create a run on the bank. being short (whether in the CDS market, with Puts, and/or naked shorting the common), you'd make a lot of money...but they'd destroy an American institution in the process.