Jonah, Make Room for JPMorgan

The markets seemed surprised this morning by a New York Times report that the loss on JPMorgan Chase's (JPM) "London Whale" derivatives trade could be as high as $9 billion.

What I find perplexing is that so many pundits in print and elsewhere continually referred to this as a $2 billion loss. We were told of the size of the loss in May, and many among us treated it as if it must still be a $2 billion loss. That flies against all logic. JPM found itself trapped in an open, illiquid position, going head to head against some of the sharpest minds in the business -- traders who were well aware of JPM's position and situation and not likely to let it off the hook. It's highly unlikely that the size of the loss on an open position of this nature would simply stagnate....366 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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