JPM and other banks getting hit after hours

[theo]

http://www.zerohedge.com/news/jpm-crash ... ket-losses

Out of nowehere, JPM announced 40 minutes ago that it would hold an unscheduled 5pm call to coincide with the release of its 10-Q. Rumors were swirling as to why. The reason is as follows:

•JPMORGAN SAYS CIO UNIT HAS SIGNIFICANT MARK-TO-MARKET LOSSES - "Fortress balance sheet" at least until Bruno Iskil gets done with it.

•JPMORGAN SAYS LOSSES ARE IN SYNTHETIC CREDIT PORTFOLIO - but, but, net is NEVER, EVER Gross.
•JPM WOULD NEED $971M ADDED COLLATERAL IF RATINGS CUT ONE-NOTCH
•JPM WOULD NEED $1.7B ADDED COLLATERAL IF RATINGS CUT 2 NOTCHES - how about three notches?
•JPMORGAN: MAY HOLD SOME SYNTHETIC CREDIT POSITIONS LONG TERM - "Level 3 CDS FTW"
•"As of March 31, 2012, the value of CIO's total AFS securities portfolio exceeded its cost by approximately $8 billion"


And it s not just JPM getting hit, Goldman and Bank of America are taking lumps as well; all down 3% to 5 % as I write this. Could be a tough day in the markets tomorrow.

[Copper Catcher]

Oh those poor banks...Don't worry I'm sure the Federal Reserve has more money they could give them to help ease the pain and make sure they get their bonus.

[Copper Catcher]

Standard & Poor's Ratings Services downgraded JPMorgan Chase & Co.'s (JPM) residential mortgage servicer to average from above average, citing internal audit reports that cited the need for improvement in certain servicing functions.

Shares slid 4.2%, to $39.02 after hours.

S&P said the issues raised in the reports primarily pertained to areas of default, but also noted deficiencies in some performing servicing departments.

The ratings firm affirmed JPMorgan Chase Bank N.A.'s average ranking for master servicing. The outlook is stable.

S&P noted the company had several internal audits that were not considered satisfactory though the company has indicated that many issues have been or are in the process of being remediated.

S&P also said it believes the company has initiated or is in the process of initiating various changes to its operations to comply with an April 2011 consent order it agreed to with the Office of the Controller of the Currency. The company has established additional training, technology enhancements and new oversight processes in response to the consent order and has also indicated plans to establish further controls regarding servicing practices and standards with 49 state attorneys general and the U.S. government.

[Ardent Listener]

JPMorgan, the financial giant, said its chief investment office had significant mark-to-market losses and that legal losses of $4.2 billion are "reasonably possible." In addition, S&P downgraded the banking giant as residential mortgage specialist to "average" from "above average." The stock fell sharply in extended-hours trading.

More Stocks To Watch: http://cnb.cx/JmakcQ

[reddirtcoins]

... been watching that.. Here we go again... more old same old...

[BamaJoe]

Before long Ben will give them their own printing presses to put in their basements. That will be the end of this kind of news.

[CtrlAltBernanke]

CRASH JPM!!!