Tomorrow will be fun.
JPM Crashing After It Convenes Emergency Call To Advise Of "Significant Mark-To-Market" Losses In Bruno Iksil/CIO Group/JPMORGAN SAYS CIO UNIT HAS SIGNIFICANT MARK-TO-MARKET LOSSES http://www.zerohedge.com/news/jpm-crashing-after-it-convenes-emergency-call-advise-significant-mark-market-losses
JPM Down 6.5% in the after hours (now nearly 7%). Many other financials also down significantly (almost not as bad as JPM.)
Dimon on conference call (CNBC): "Risk (from situation) could last for a couple of more quarters and result in more losses."
Dimon also on conference call: (CNBC): "Just because we were stupid doesn't mean everyone else was." (one: I'm sure that bit of humor was not appreciated by shareholders. Two: it wouldn't surprise me if other financial institutions are doing similarly stupid things.)
And: " At the end of the day, the real question is why did JPM put in so much money at risk in a prop trade because we can dispense with the bullshit that his was a hedge, right? Simple: because it knew with 100% certainty that if things turn out very, very badly, that the taxpayer, via the Fed, would come to its rescue. Luckily, things turned out only 80% bad. Although it is not over yet: if credit spreads soar, assuming at $200 million DV01, and a 100 bps move, JPM could suffer a $20 billion loss when all is said and done. But hey: at least "net" is not "gross" and we know, just know, that the SEC will get involved and make sure something like this never happens again"http://www.zerohedge.com/news/worlds-largest-prop-trading-desk-just-went-bust
Not saying to buy/sell off of this news, just the messenger so when the market is down tomorrow, people are aware of a primary reason why.