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Strategies & Market Trends : P&S and STO Death Blow's -- Ignore unavailable to you. Want to Upgrade?

To: ajtj99 who wrote (14401)	11/8/2002 11:20:34 PM
From: Zeev Hed	Respond to of 30712

It could very well be, failure of JPM could cause financial collapse because they have so many derivatives on which they are "one side" of the deal. Helping them slowly unwind these should be part of the Fed tasks, they are supposed to do whatever is necessary to avoid financial dislocations. Zeev

To: ajtj99 who wrote (14401)	11/9/2002 1:03:53 AM
From: LTK007	Read Replies (4) \| Respond to of 30712

aj, i myself have felt for some time that a failure in JPM would constitute a financial emergency of such magnitude that the Fed would have no choice but to do what ever possible to prevent such a failure. I also , if in fact JPM has been in such desperate straights, think this would have been put under top secret regulation such that the word does not leak out. This is the 2nd biggest bank in the U.S. From what i have read via Apogee Research JPM is at risk for a potential loss in a worst possible case scenario that exceeds that actual sum value of the bank by a staggering amount. As of a year ago Apogee Research reported that for every dollar invested in JPM it is at risk of a 178dollar loss! if they got caught in a derivatives disaster. As i sense it, if in fact there is a fight to keep JPM solvent going on behind the scenes, the government has been dealt a no win situation. If they don't go full throttle to save JPM, and JPM goes under, it would be , i feel, the single most destructive bank failure in economic history to the overall global economy. But if they are in fact making dramatic moves to salvage JPM, the methods are undermining the near term chances of economic recovery. Bottomline, if the scuttle-butt be real, JPM, through greed driven highly dangerous positioning in derivatives has created a situation the imperils near all around it; thank you very much,JPM--not!. Max