Financial Review

Still Too Hot

http://media.blubrry.com/eatthebankers/p/content.blubrry.com/eatthebankers/SINCLAIR_NOE-SEG_1-06-21-2017.mp3Podcast: Play in new window | Download (Duration: 13:15 — 7.6MB)Subscribe: Apple Podcasts | Android | RSS…..Oil stockpiles drop and oil prices drop – bears in charge. Drug prices zoom on dereg draft. Repeal and replace unveiling tomorrow – what’s not to hate? Opioids ubiquitous. Existing home sales, tight inventory, higher prices. Bank lending tightens. We’re number 18. Kalanick’s ride ends. Nike goes Amazon. Sears Canada goes bust. UPS’ Christmas gift to us all. London Whale blames Jamie Dimon. Financial Review by Sinclair Noe for 06-21-2017

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Financial Review

Before the Deluge

http://media.blubrry.com/eatthebankers/p/content.blubrry.com/eatthebankers/SINCLAIR_NOE-SEG_1-10-01-2015.mp3Podcast: Play in new window | Download (Duration: 13:16 — 6.1MB)Subscribe: Apple Podcasts | Android | RSSFinancial Review by Sinclair Noe for 10-01-2015 DOW – 12 = 16,272 SPX + 3 = 1923 NAS + 6 = 4627 10 YR YLD – .02 = 2.04% OIL – .11 = 44.98 GOLD – 1.80 = 1114.50 SILV un = 14.63   Manufacturing grew in September at the slowest pace in more than two years. The Institute for Supply Management said its manufacturing index dropped to 50.2% last month from 51.1% in August, reflecting a stronger dollar and weaker global economy that is hurting U.S. exports of many major American-made goods. That’s the weakest reading since May 2013, although any reading above 50 indicates growth.   The number of people who applied for unemployment benefits rose by 10,000 to 277,000 in the week ended Sept. 26, but initial claims remain extremely low in a sign of steady improvement of the labor market. The average of new claims over the past month, meanwhile, fell by 1,000 to seasonally adjusted 270,500. The level of new claims sank below 300,000 in early March and has remained there for 30 straight weeks, a feat last accomplished in 1973, when the nation’s working population was 40% smaller. Tomorrow morning is the monthly jobs report from the Labor Department.   Construction spending increased 0.7% in August, and gained 13.7% over 12 months. Residential construction rose 1.3%, while nonresidential construction grew 0.3%. Construction of lodging climbed 2.8% and has …

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Financial Review

Chips and Salsa

http://media.blubrry.com/eatthebankers/p/content.blubrry.com/eatthebankers/SINCLAIR_NOE-SEG_1-07-16-2015.mp3Podcast: Play in new window | Download (Duration: 13:03 — 6.0MB)Subscribe: Apple Podcasts | Android | RSSFinancial Review by Sinclair Noe DOW + 70 = 18,120 SPX + 16 = 2124 NAS + 64 = 5163 10 YR YLD un = 2.35% OIL + .13 = 51.04 GOLD – 4.30 = 1145.60 SILV – .12 = 15.08   The Nasdaq Composite closed at a record high, taking out the old record from last month. After hours of debate, Greek lawmakers passed a bailout agreement late last night. Eurozone finance ministers agreed in principle to extend a €7 billion-euro bridge loan to Greece. The loan would allow Greece to pay some of its outstanding bills, meet a scheduled repayment to the ECB next week and open the door to securing a third bailout package. Up next: the German Bundestag will vote on Friday whether or not to approve the new rescue, however, talks over securing a new €86B bailout are likely to last for another four weeks.  European Central Bank President Mario Draghi said he views the country’s place in the euro as secure. Greek banks are still closed for the time being.   Yesterday, Fed Chair Janet Yellen said once again that the Fed is likely to raise interest rates at some point in 2015. Yellen told the House Financial Services Committee that the first hike since 2006 “will signal how much progress the economy has made in healing from the trauma of the financial crisis.” Today, Yellen repeated her semi-annual testimony to …

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Monday, March 31, 2014 – Hope for the Best, Prepare for the Worst

Hope for the Best, Prepare for the Worstby Sinclair Noe DOW + 134 = 16,457SPX + 14 = 1872NAS + 43 = 419810 YR YLD + .01 = 2.72%OIL – .18 = 101.49GOLD – 10.10 = 1285.80SILV – .06 = 19.86 Wrapping up the first quarter let’s go to the scorecard. The Dow Industrials lost 121 points in the quarter but gained 136 points in the month of March; the S&P 500 finished the quarter up 24 points and up 13 points in March; the Nasdaq Comp gained 22 points in the quarter and lost 110 points in March; oil prices are up $3.50 a barrel since the start of the year and down .42 in March; gold gained $74.80 for the quarter but lost $41.90 the last month; silver added .33 for the quarter but down $1.44 for the month of March. The first quarter marked the fifth straight quarter of gains for the S&P 500 and the Nasdaq Composite indices. Last week’s drop of 2.8% in the Nasdaq Comp was the first such drop since October 2012, or the first time the Nasdaq dropped by 2.8% in 77 weeks. Did you see 60 Minutes last night? They interviewed Michael Lewis, who is an excellent financial writer; he has a new book called “Flash Boys” and it deals with high frequency traders on Wall Street. They tried to present the idea that they had just discovered the market is rigged. It is rigged, and it has been rigged for …

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Monday, September 30, 2013 – Politically Dysfunctional Insanity

Politically Dysfunctional Insanityby Sinclair Noe DOW – 128 = 15,129SPX – 10 = 1681NAS – 10 = 377110 YR YLD – .04 = 2.61%OIL – .56 = 102.31GOLD – 8.30 = 1328.90SILV – .07 = 21.81 We’ll get to the shutdown and all that fun politically dysfunctional insanity in just a moment, but first we need to wrap up the third quarter. The Dow Industrials are up about 260 points for the third quarter, and the S&P500 is up 80 points. Year to date the Dow has gained about 2000 points and the S&P has gained about 260. Since the start of the year, the yield on the 10 year Treasury note has climbed from around 1.75% to 2.51% at the end of the second quarter (briefly touching 3%). Oil prices dropped from around $110 in just about a week’s worth of trading, but prices are up about $10 dollars since the start of the year, and down about $1 for 3Q. If you’re wondering how the Sell in May idea has worked out, well the Dow is down about 130 points from the May sell signal and the S&P is down 35 points. So, Sell in May is looking good and could look a whole lot better if the government shuts down in a little less than 5 hours. Tomorrow, the fourth quarter begins. A potential federal government shutdown looms at midnight.So, the question is whether underperforming Wall Street traders will push prices higher in the face of government …

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Tuesday, September 24, 2013 – Give Me Energy

Give Me Energy by Sinclair Noe DOW – 66 = 15,334SPX – 4 = 1697NAS + 2 = 376810 YR YLD – .05 = 2.65%OIL – .30 = 103.29GOLD + .80 = 1324.10SILV + .10 = 21.84 The big unknown this week is the possibility of a government shutdown Sunday night. A few moments on that and then I’ll get to my main topic here, which deals with energy. The shutdown could happen; with Congress, anything could happen. I’ve been trying to figure out the likelihood, and I don’t think it is likely, although it could still happen. Of course the battle is over defunding Obamacare. And I remember the old rules for how a bill becomes law, and the checks and balances of our democratic republic. The Affordable Care Act was duly enacted by a majority of both houses of Congress, signed into law by the President, and even upheld by the Supreme Court. The Constitution of the United States does not allow a majority of the House of Representatives to repeal the law of the land by defunding it. If that were the case, no law is safe. A majority of the House could get rid of unemployment insurance, federal aid to education, Social Security, Medicare, or any other law they didn’t like merely by deciding not to fund them. If that were the case, then you could control everything in government with a simple majority in the House of Representatives; it would render every other branch of …

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Thursday, September 19, 2013 – Shine On You Crazy Dimons

Shine On You Crazy Dimons by Sinclair Noe DOW – 40 = 15,636SPX – 3 = 1722NAS + 5 = 378910 YR YLD +.06 = 2.75%OIL + .04 = 106.43GOLD – .20 = 1366.10SILV + .13 = 23.19 No taper, despite hints and great expectations. Having announced the intention to taper, ultimately, a few weeks later, the proposal was shelved. The reasons given were concerns about the strength of the economic recovery and the impact of high rates on the ability of an over-indebted world to continue to meet its obligations. All these factors were largely unchanged between the time of the original announcement and the repudiation. What did change was the taper tantrum, the unpleasant market reaction to the hint of taper. Bond yields rose sharply; the Fed’s tough talk has already led to a 140 basis point rise in 10-year Treasury yields, which would be roughly equivalent to six rate increases; that in turn resulted in pushing mortgage rates higher, putting a crimp in the housing recovery. Today we learned home sales were up. Sales of previously owned homes unexpectedly rose in August to the highest level in more than six years as buyers rushed to lock in interest rates before they jumped even higher. The labor “participation rate” dropped to 63.2% in July, the lowest level since the late 1970s. The rate for men is at an all-time low. The unemployment rate has been falling, but chiefly because so many people are giving up hope and dropping …

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Tuesday, September 17, 2013 – Everything is on Hold at a Bad Level

Everything is on Hold at a Bad Level by Sinclair Noe DOW + 34 = 15,529SPX + 7 = 1704NAS + 27 = 374510 YR YLD – .02 = 2.84%OIL + .22 = 105.64GOLD – 3.90 = 1311.00 SILV- .08 = 21.84 Market players are focusing on the Fed right now. Yesterday, Larry Summers withdrew his name from consideration to be the next Fed Chairman; maybe it doesn’t matter who the next Fed chair is, they are likely to continue on the same path. Today, Jim Rogers said the role of Fed Chair is nothing more than a lapdog for the establishment. Harsh, but not necessarily inaccurate. Still, the Fed Chair is a powerful role and it looks like a woman almost nobody knows will soon take over. Give yourself 3 points if you know her name and her current job title. (Janet Yellen, Fed Vice Chair) The Federal Open Market Committee, the FOMC, was meeting today; they’ll continue meeting tomorrow to determine monetary policy. It’s widely expected the FOMC will announce taper, in part because of logistics. The FOMC meets tomorrow, another meeting in October, another meeting in December, and then Bernanke retires. Market participants are expecting taper, and the Fed usually avoids surprises. September and December are the two most likely times for an announcement, in part because the October FOMC meeting does not include a scheduled press conference to explain any significant changes; also October will be right in line with budget battles If there is a …

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Tuesday, August 27, 2013 – The Drums of War

The Drums of War by Sinclair Noe DOW – 170 = 14,776SPX – 26 = 1630NAS – 79 = 357810 YR YLD – .07 = 2.71%OIL + 3.34 = 109.55GOLD + 11.00 = 1417.00SILV + .19 = 24.62 Yesterday Secretary of State Kerry laid out the case against Syria. Today we learned the US could be ready to take military action as soon as Thursday. Defense Secretary Hagel today said: “We have moved assets in place to be able to fulfil and comply with whatever option the president wishes to take.” This follows last Wednesday’s suspected chemical attack near the Syrian capital, Damascus, which reportedly killed more than 300 people; more than 3,600 people were treated for nerve agents, and by some estimates the death toll is now approaching 500. You’ve surely seen the grisly videos. They are compelling, but in light of the faulty intelligence that preceded the war in Iraq, there is a call for stronger proof. White House spokesman Jay Carney says a report on chemical weapons use being compiled by the US intelligence community and will be published this week. There is not a requirement for Congressional approval for the president to initiate military action including strikes; rather the War Powers Act requires congressional notification, and that has been happening; of course questions of legality will be debated. The UK Parliament is to be recalled on Thursday to discuss possible responses. Prime Minister David Cameron said the world could not stand idly by after seeing appalling …

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Tuesday, August 13, 2013 – Metric Disconnects

Metric Disconnects by Sinclair Noe DOW + 31 = 15451SPX + 4 = 1694NAS + 14 = 368410 YR YLD + .11 = 2.71%OIL + .42 = 106.53GOLD – 15.90 = 1322.40SILV + .03 = 21.56 Retail sales rose 0.2% in July, following an upwardly revised 0.6% increase in June; retail sales are now up for 4 consecutive months. The retail sales report is important because consumer spending accounts for about 70% of the economy. We’ve heard that so frequently that it sounds like a cliché, but when we spend, that money circulates through the economy and it is the vital life blood of the economy. Areas showing gains included restaurants and bars, grocery stores and sporting goods outlets. Within general merchandise, department stores showed a 0.6 percent increase in sales last month Another Commerce Department report today showed inventories at US companies were little changed. Merchants had enough goods on hand to last 1.29 months at the current sales pace in June. Atlanta Federal Reserve bank President Dennis Lockhart says he thinks policy makers should move cautiously this year to scale back its bond buying program. Lockhart says the Fed might make its first reduction before the end of the year, maybe as soon as September, and that it should be thought of as a cautious first step. So, Lockhart was a bit more dovish than other Fed policy makers of late, and as he made the comments, small losses on Wall Street gave way to modest gains. The …

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Monday, August 12, 2013 – The End of Mandatory Draconian Punishment

The End of Mandatory Draconian Punishment by Sinclair Noe DOW – 5 = 15,419SPX – 1 = 1689NAS + 9 = 366910 YR YLD + .02 = 2.60%OIL+ .19 = 106.16GOLD + 22.60 = 1338.30SILV + .87 = 21.53 This week’s economic calendar includes retails sales reports tomorrow, plus a look at inflation on the wholesale level tomorrow, and inflation at the retail level on Wednesday; also reports from the Philly Fed, plus a look at industrial production, housing starts, and consumer sentiment. The over-riding question is whether the economy is seriously showing strength or if we are just grinding along. Most of the expectations for this week’s data suggest more of the same old, same old. It’s doubtful we will see anything that could sway the Federal Reserve to change policy, and that means the stock and bond markets may have gotten ahead of themselves in pricing in an improving economy. The Treasury Department reported this morning that the US government spent $98 billion more than it took in last month, with the deficit driven by spending on healthcare programs, pensions for the elderly and the military. So far in the current fiscal year, which began in October, the federal government has run $607 billion into the red, a narrowing from the $974 billion deficit chalked up in the same 10 months of fiscal year 2012. A major change today from the Justice Department; Attorney General Eric Holder is calling for sweeping and systemic changes to the American judicial …

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Friday, August 09, 2013 – May All Your Wishes Come True

May All Your Wishes Come True by Sinclair Noe DOW – 72 = 15,425SPX – 6 = 1691NAS – 9 = 3660 10 YR YLD – .01 = 2.57%OIL + 2.57 = 105.97GOLD + 2.30 = 1315.70SILV + .31 = 20.66 As we started the week, I warned that August can be fairly volatile in the stock market; it seems like the lazy days of summer and volume is usually lackluster, as it was today, but sometimes that just intensifies price swings. The markets were down again today, the fourth decline in the week, and the first weekly decline on the heels of six weeks of gains. The Dow was down 1.5% for the week. The S&P pushed back to 1700 a few times but couldn’t break through. This week’s declines don’t seem to tell us much; we could go either way next week. Yes, I know the rally is long in the tooth; going back to March 2009, the rally is 4.4 years old, longer than the average rally, but it really is too early to start catching falling knives. There wasn’t much in the way of economic reports this week; earnings reporting season is winding down, Congress is away on Summer recess. I guess it’s been about a week since we saw the guesstimates on second quarter GDP, and you’ll recall that the guesstimates included revisions that go back 83 years. The government is recalculating the numbers to try to get a more accurate picture. One of the …

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Tuesday, June 04, 2013 – Systemically Dangerous

Systemically Dangerous by Sinclair Noe DOW – 76 = 15,177SPX – 9 = 1631NAS – 20 = 344510 YR YLD un = 2.13%OIL + .38 = 93.83GOLD – 11.20 = 1401.00SILV – .20 = 22.65 Tuesday?? What happened? For 20 consecutive weeks, Tuesday was an up day on Wall Street; going back to January, every Tuesday was a winner. I don’t know why. Maybe there was something going on in the shadows and dark corners of Wall Street, maybe it was just a fluke of nature; maybe it was a trend that started and continued as the algorithmic traders took notice. The first rule of trends is that a trend in place is more likely to continue than it is to reverse, until it reverses. That sounds simple, but it isn’t. Behind that concept is the idea that you follow the market rather than trying to impose your will, or your pre-conceived notions, or your bias on the market. Today, the trend reversed. Federal regulators have proposed a group of firms that aren’t banks to be deemed potential threats to the financial system that need stricter government oversight. The Financial Stability Oversight Council, which includes Treasury Secretary Jacob Lew and Federal Reserve Chairman Ben Bernanke, was created to help prevent another meltdown. Nonbank financial firms include insurers, hedge funds, mutual fund companies and private equity firms. Those deemed “systemically important” would have to increase their cushion against losses, limit their use of borrowed money and submit to inspections by Fed …

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Friday, March 15, 2013 – But Wait, There’s More!

Mark your Calendar, April 5 & 6 and make your reservations for the 2013 Wealth Protection Conference in Tempe, AZ. For conference information visit www.buysilvernow.comor click hereor call 480-820-5877. This year’s conference features Roger Weigand, Nathan Liles, David Smith, Mark Liebovit, Arch Crawford, Ian McAvity, Bill Tatro, and I will speak on Friday. There is an expanded Q&A session with all speakers on Saturday. I hope you can attend. But Wait, There’s More! By Sinclair Noe DOW – 25 = 14,514SPX – 2 = 1560NAS – 9 = 324910 YR YLD – .04 = 2.00%OIL + .42 = 93.45GOLD + 2.60 = 1593.90SILV – .04 = 28.87 Beware the Ides of March. The winning streak is over. These things don’t last forever. It’s just one day. The bad news continues for JPMorgan Chase. Bank executives have been appearing before the a Seante panel investigating the $6 billion trading losses of the London Whale. Today’s hearing and a subcommittee report released on Thursday paint a damning picture of a bank and high-level employees raking in huge payouts while ignoring risks, deceiving investors, fighting with regulators and trying to work around rules as losses mushroomed in a derivatives portfolio. The Subcommittee investigators, largely the same crew who unraveled financial scandals surrounding infamous Goldman Sachs trades like Abacus and Timberwolf, and also took on HSBC’s trans-global money-laundering activities in an extraordinarily detailed report issued last summer, have now taken aim at the heart of the Too-Big-To-Fail issue through its investigation into the CIO …

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Thursday, February 07, 2013 –

Waiting for the Apocalypse by Sinclair Noe DOW – 42 = 13,944SPX – 2 = 1509NAS – 3 = 316510 YR YLD -.02 = 1.95%OIL – .74 = 95.88GOLD – 6.30 = 1672.00SILV – .39 = 31.56 Some day this war will end. Some day we will have an apocalypse, not in the terrifying version of the word but in the original Greek definition of “apokalypsis”, meaning an “uncovering”, a “lifting of the veil”, or “the disclosure of something hidden”. One day we will wake up and realize that money is printed out of thin air and it is not a store of wealth but a vessel of debt; the veil will be lifted and we will see the debt masters for what they truly are. Until then we get little surprises in the form of troves of emails revealing the reality that the financial markets are not bastions of cool rationalism, nor are they temples to integrity; and the lubricant of commerce may be nothing more than a tar pit. We have been reading the emails from Barclays, UBS, and S&P describing how they would rig rates or rate deals for a cow if only they could get their cut. Sometimes the language is clipped in an instant messaging style of prose, sometimes it is profane in a way that would make Tony Soprano blush, and it seems to be flowing forth in a never-ending stream of culpability. Some day this war will end. But not today. Today we …

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Wednesday, January 23, 2013 – Never Been To Davos

Never Been To Davos by Sinclair Noe DOW + 67 = 13,779SPX + 2 = 1494NAS + 10 = 315310 YR YLD un = 1.83%OIL – 1.13 = 95.55GOLD – 7.00 = 1685.80SILV + .02 = 32.33 I want to go back to a couple of reports from the past week which I hope will bring us to today’s news. First, JPMorgan’s management task force report on the bank’s $6.2 billion in losses from the “London whale” trade. JPMorgan is a huge institution with more than $2 trillion in assets. Banks typically lend their deposits, but for the tens of billions that JPMorgan cannot lend, this remainder is turned over to its chief investment office. This unit is charged with earning returns on this money and also using these billions to hedge the enormous financial institution against bad events. So, the London Whale was gambling with excess deposits. The idea was to earn returns on this money and also use these billions to hedge the enormous financial institution against bad events, but the trading position became so large, more than $50 billion, that the JPMorgan traders couldn’t liquidate it without hundreds of millions of dollars in losses. Instead of liquidation, they doubled down, adding some $30 billion more in bets on bets, hoping this would save them. That trade still didn’t work, and JPMorgan lost an estimated $169 million in the first two months of 2012. It was then that the traders added another $40 billion to the portfolio. Like …

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Wednesday, August 22, 2012 – QE Soon, Inequality Grows

QE Soon, Inequality Grows– by Sinclair Noe DOW – 30 = 13,172SPX + 0.32 = 1413NAS + 6 = 307310 YR YLD -.09 = 1.72%OIL – .28 = 96.40GOLD + 15.50 = 1655.10SILV + .50 = 29.93PLAT + 26.00 = 1541.00 The Federal Reserve released minutes of their most recent Federal Open Market Committee meeting. Here’s the money quote from the FOMC minutes: “Many members judged that additional monetary accommodation would likely be warranted fairly soon unless incoming information pointed to a substantial and sustainable strengthening in the pace of the economic recovery.” In other words, a majority of the FOMC members think it is time for QE3, unless we see an economic miracle, say hallelujah! So, when will they make an announcement? Well, there is a symposium in Jackson Hole, Wyoming on August 31. There is another FOMC meeting September 12 and 13. The language in today’s minutes is not a guarantee of QE3, but if they do not make an announcement of QE3, then the lack of action will be interpreted as highly political and obstructionist. They have now obligated themselves to some sort of accommodation; it might not be called QE3, but a rose by any other name… The economy is ready for help; GDP is growing at less than 2%; inflation is running less than 2%; unemployment is lingering at 8.3%; Europe could implode and hurt the US economy. So, what will happen when the Fed provides additional monetary accommodation? Kansas City Federal Reserve President Esther …

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Friday, July 13, 2012 – Jamie Dimon is to Jerry Sandusky as Tim Geithner is to Joe Paterno

Jamie Dimon is to Jerry Sandusky as Tim Geithner is to Joe Paterno-by Sinclair NoeDOW + 203 = 12,777SPX + 22 = 1356NAS + 42 = 290810 YR YLD +.02 = 1.50%OIL +.99 = 87.07GOLD + 17.20 = 1590.40SILV + .13 = 27.44PLAT + 15.00 = 1438.00JPMorgan Chase reported second quarter earnings of $5 billion; part of that is from accounting gimmickery – turning loss reserves into profits and such; and that’s after losses from the trading unit in London. The Chief Investment Office, or CIO, also know as the London proprietary trading unit, aka., the London Whale, sometimes known as Voldermort, occasionally referenced as he whose name can not be spoken – they lost $5.8 billion. Jamie Dimon, the CEO said back in May that the losses were $2 billion; now Dimon says that in a worst case scenario the London Whale losses will grow to $7.5 billion; the slow motion train wreck is still happening and Dimon can’t stop it. Dimon claimed traders may have deliberately hidden losses and the bank will restate first quarter earnings within the next week or so. So, there was this small trading unit in London and they accounted for about one-quarter of the bank’s net income, several billions of dollars in profits, and wants you to believe that he didn’t know what they were doing. His best story is that he is remarkably incompetent yet pleasantly surprised when billions of dollars of profits just magically materialized out of thin air. All right, MF …

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Friday, May 11, 2012 – JPMorgan Moving On

DOW – 34 = 12,820SPX – 4 = 1353NAS +0.18 = 293310 YR YLD -.04 = 1.84%OIL – 1.51 = 95.57GOLD – 13.00 = 1581.40SILV – .15 = 28.99PLAT – 21.00 = 1471.00 So, let’s break down the problems at JP Morgan Chase. The bank lost net $800 million, on a $2 billion dollar trading loss in synthetic credit derivatives. They won’t go broke today. JPM made $5.4 billion in profit in the first quarter. Still, a couple of billion dollars is significant, and it raises questions about the regulation of banks, the valuation and suitability of derivatives, the size of the world’s largest firms and the systemic risk they may pose to the financial system. For the past few years, JPM has been increasing the size and importance of its proprietary trading desk based in London. Theoretically, a proprietary trading desk trades stocks, bonds, currencies, commodities, derivatives and other financial instruments with the firm’s own money – as opposed to using customers’ money. If the bank makes money, they keep it and Jamie Dimon gets a big bonus. If they lose big, Jamie Dimon could lose his job, but he gets to keep the bonus. If the proprietary trading department screws up royally and the trades implode and pose a possible systemic threat, then the taxpayers cover the losses, and Jamie Dimon gets to keep his bonus. Once upon a time, the proprietary trading department of a bank was not the major part of the banks’ profits. The bankers …

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