JPMorgan boss Jamie Dimon has stepped up a gear and embarked on a charm offensive to win over the Bear doubters, and attempt to retain the brightest and best staff as JPMorgan tightens its grip on its smaller rival.
The Wall Street Journal reports that Credit Suisse has said that it will probably post its first quarterly loss in 5 years this quarter, after traders were found to have mispriced some $2.65bn of assets. The impact of the mispricing will be spread across the current and last trading period.
Well, he's certainly not playing bridge now. There's nothing likely to concentrate the mind more than seeing the value of your stake in the business you ran for years fall from $1bn to just $31m in a year or so. Bear Stearns Chairman Jim Cayne is said to be back on the prowl - and he ain't thought to be a happy camper.
As some folks at JPMorgan strut around Bear Stearns' trading floors in London and New York as if they already own the place, all of a sudden there's some doubt about whether Jamie Dimon's crew will actually end up taking over its smaller rival.
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The markets waited with bated breath for Goldman's fiscal first-quarter earnings Tuesday. With rumours that the firm was likely to write down up to $3bn in assets, fears were growing that a bad set of figures from the Wall Street firm would spook the markets even more, and push us headlong into a full-blown market crash.
Reuters reports that 'gallows humour' was the order of the day Monday, when Bear Stearns staff returned to work the day after their firm had been sold to JPMorgan Chase for $2-a-share ($236m).
Reuters reports that JPMorgan has come out and said that it expects UBS to have to write down an additional $17.9bn of assets this year, taking the total at the Swiss bank to around $40bn. JPMorgan is also forecasting that there will be further net of tax asset writedowns this year over at Credit Agricole ($1.1bn), Credit Suisse ($7.3bn), Deutsche Bank ($2.9bn) and SocGen ($1.5bn)
How do you solve a problem like Alan Schwartz ? That's what the folks over at JPMorgan Chase are trying to work out now.
The Wall Street Journal reports that Deutsche Bank is said to have suspended some of its FX traders after it detected 'procedural errors' on one of its Italian currency desks (the bank apparently has desks in both London and Milan).
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Jamie Dimon just warned shareholders that JPMorgan Chase will face more sanctions from regulators in the coming months.
It sure doesn't look that smart now.