What Was Not Said During JP Morgan’s Jamie “tape worm” Dimon’s Media PR Campaign

 

Today’s Meet The Press PR damage control campaign orchestrated on behalf of Jamie Dimon by the fawning press was just another attempt at redirection, in which a faux contrite Jamie Dimon promises that as a result of being ‘100% wrong’ about his prior “Tempest in a Teapot” description of the Bruno Iksil debacle, he has learned his lesson, and in tried and true American fashion deserves a second chance. The rest was filler. What was not said is that the entire business model of the modern US banking edifice, where due to the Net Interest Margin limitations imposed by ZIRP, is one of prop trading as being a glorified hedge fund is the only way the banks can generate a rate of return above their cost of capital.

  • What was also not said was the glaring lies by Blythe Masters from a month ago who swore up and down to CNBC that JPM does not engage in prop trading: “We have offsetting positions. We have no stake in whether prices rise or decline
  • What was also not said is that contrary to “conventional wisdom” where a few prop traders have been sacked (most likely due to not taking enough risk) prop trading is alive and well across Wall Street, even if it has been largely rebranded as ‘flow trading’ – just as the high freaks are scrambling to come up with a new name for HFT because that will make all the difference.

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