I expect the JPMorgan / London Whale story to blow over at some point toward the end of this coming week, barring any further shocking revelations.
From my experience, it is by then that every single conceivable angle from which to cover this story will have been exhuasted. By then we’ll have heard from every single person who’s ever set foot inside a bank, every critic of banks and every critic of proposed bank regulatory reforms (yes, they’re out there and are somehow staying alive without the use of a feeding tube).
One other thing to consider, in hindsight Jamie’s smartass remarks about the compensation ratio of journalists was probably not a great idea. The media is going banoodles with this story, they are digging through the dumpsters near his home. Hell hath no fury like a journo scorned over their base pay.
But in the meantime, we consume. We dissect. We read and we learn and we piss and moan.
“That’s not a hedge!”
“Yes, of course it’s a hedge!”
“But it’s only $2 billion in the context of a trillion dollar fortress balance sheet!“
“Fortress balance sheet my dick, these guys are fuckin’ around with ‘synthetic credit portfolios’ again, goddamn it did no one learn anything?”
Wherever you stand, here’s the latest:
Jamie had to retape his NBC Meet the Press interview at 30 Rock yesterday, it airs tomorrow. (NYT)
Oh my god, can Jamie really be as clueless about the Whale’s book as he sounds? Scary. (Bloomberg)
Reggie Middleton: Blame Bernanke for this $100 billion trade lunacy. (BoomBustBlog)
Henry Blodget: So when will the heads start rolling already? (Business Insider)
JPMorgan sought a loophole for their so-called hedging activity. (NYT)
Simon Johnson: Rip these fucking banks apart already (I’m paraphrashing, Simon’s a prof at MIT). (Baseline Scenario)
James Bianco: More losses might be coming. (The Big Picture)
The SEC and the Federal Reserve swoop in. (Bloomberg)