Matt Levine, Bloomberg, JPMorgan Fined For Losing Money, here.
Thing two is: How dumb was this trade, really? I have myself been pretty sneery about some of the decisions made in putting it on, but the basic crash-hedge theory at its heart was not nuts. More importantly, though, the notion that this trade exposed JPMorgan to material risk of unsoundness is odd. I mean, $6.2 billion is a lot of money to lose. But JPMorgan’s net income in 2012, after those losses, was $21.3 billion. The $6.2 billion loss was less than 2 percent of the assets in JPMorgan’s Chief Investment Office, and less than 0.2 percent of JPMorgan’s total assets. Spinning it into an existential threat to the bank looks … I mean, just sort of wrong.