The Banking and Strategy Initiative

Chillin' out till it needs to be funded

J P Morgan to report $1 bln Investment Banking revenues

WASHINGTON - NOVEMBER 23:  Members of the news...
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Also discussing the newly championed BofA bankruptcy and the HSBC survivor instinct..

The 2011 Barclays Global Financial Services Conference being in the news with Project new BAC yesterday we decided to stay with it and get Jes Staley speak on J P Morgan today. The main points of his short and concise conversation seemed to be: They have not made better traders anywhere else., so what if we trade in $70 tln notionals our Dollar per VAR point is the highest ( Revenue to VAR)  and more on how Capital is not the problem.

However, Jamie Dimon continues to be unpopular not just with the Whitehouse as he probably planned but with most of the media asking him to get a balanced view on regulation and supporting only Basel 3 is probably not supporting regulation at all. But then, Jamie Dimon is an industry leader who has to pass on a very unpopular message as revenues shrink at JP Morgan again. The mortgage market is already more or less destroyed with BofA responsible for half the US market and SIFI supplementary Capital requirements or other convoluted portions of the Dodd Frank act definitely need a lot of handholding to get through. Also, even as BofA’s bankruptcy starts getting discussed by other experts ( to make another GM possible) we feel JP Morgan is good with revenues going down by 30% in Q3 Their exposure to Greece is in Tens of Billions and booked to market prices also ( i suspect)

What’s happening around?..

Meanwhile there is a HSBC UK retail banking presentation going around which will dispel your misconceptions on  the dull UK economy..a lot of strong busines growth in that segment is contingent on non luxury goods robust growth and does not really work in a recession we are talking about mostly..but that is a dream we may not want to dream right now. Tough times call for you and me to be tough. Greece still has a $7 bln shortfall to cover to pass the targets set by it before it runs out of cash in October and ECB is no longer free to finance everyone they need on the table?

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