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Net Net: Promoting innovation and managing change

Last Call: "Call me Jamie": Dimon Meets His Moby Dick

JP Morgan Chase

“Call me Jamie.”

-Tonight, JP Morgan’s Jamie Dimon meets his Moby Dick as a “London whale” swallows $2 billion of JP Morgan's money.

Robert Hum's Market Musings

  • Stocks fade into close, end mixed
  • Dow snaps 6-day losing streak, but Nasdaq closes down for the 3rd straight day
  • Weak outlook gives Cisco its worst day in 15 months. Falling over 10% today, the stock ends as the worst performer in the Dow Industrials, S&P 500 and Nasdaq 100.
  • S&P 500 Futures drop over 10 points after-hours following JPMorgan’s disclosure of a $2 billion trading loss

What Wall Street Is Talking About Tonight

JPMORGAN WOES SIGNAL TROUBLE FOR BANKS, MARKET: FAST PROS/ – Lee Brodie: “In the wake of a stunning after hours announcement from JPMorgan , the Fast Money say you may need to re-evaluate everything… “This is the last thing the financials need,” says trader Steve Grasso. “It’s going to raise questions — not only at JPMorgan but across the entire industry,” adds Joe Terranova. “It makes me wonder if there are other portfolios that need to be marked to market. Money pros will ask, what is the impact? And how far does it extend? Who else holds what appears to be lousy paper?”

HEARD ON THE STREET: J.P. MORGAN TRADES IN ITS CROWN/WSJ – David Reilly: “Even banking whales can run aground. That was the stark lesson from J.P. Morgan Chase's shock announcement Thursday night that it had suffered $2 billion in trading losses so far in the second quarter. The disclosure sent shares in J.P. Morgan, the country's largest bank by assets and a pivotal player in the global financial system, reeling. Other big bank shares also tumbled. And with good reason. While J.P. Morgan's painful loss should prove manageable — the bank earned $5.4 billion in the first quarter — it presents a host of issues.”

WHALE OF A CALL: DIMON’S NOTABLE QUOTES/WSJ – David Benoit: “Jamie Dimon is known for being a top-notch risk manager, and apologizer. Thursday, the latter role prevailed, as he took the bullet on J.P. Morgan’s big loss on the so-called London Whale trades. Here are the notable quotes from Dimon’s performance Thursday night.”

OTHERS IN THE SPOTLIGHT AFTER JPMORGAN’S BIG TRADING LOSS/DealBook – Michael de la Merced: “Almost immediately after JPMorgan Chase disclosed that a trading group had suffered a “significant” loss because of complex credit investments, analysts and investors began pondering which executives might come under fire… That means that a number of executives could be thrust into the spotlight that has now been cast on what JPMorgan chief executive Jamie Dimon has called the product of “errors, sloppiness and bad judgment.”

UNLIKE CISCO'S OUTLOOK, INTEL IS UPBEAT/WSJ – Don Clark: “Intel is a lot more upbeat than many other tech companies, betting that the race called Moore's Law will help the company and cause problems for competitors.”

WHAT CHESAPEAKE OWES SHAREHOLDERS/WSJ – John Bussey: “…But this is no longer only about Mr. McClendon and whether, if matters get notably worse, he should go. It's also about Chesapeake's directors and whether they should stay. Directors of public companies are expected to provide a form of parental supervision for their firms. But it's evident now that Mr. McClendon — a creative risk taker — was sometimes home alone. Among other things, he has been busy financing personal energy deals that have required hundreds of millions of dollars of debt, some of which was borrowed from companies with which Chesapeake does other business.”

PICKENS: 'I AM THROUGH WITH WASHINGTON' AFTER GAS FIGHT/ – Jeff Cox: “…Asked by CNBC's Kate Kelly to give a summation of what his experience has been with Washington, Pickens said: "Washington, generally, I can handle in two seconds: It's a piece of s---."


*We've sold our Chesapeake stock since Dec.

*Wouldn't Bet Against Chesapeake CEO, but don't like the position he's in

*We sold Chesapeake shares because we don't like the market in nat gas

*I wouldn't bet against Chesapeake CEO, though I don't like the position he's in

*Chesapeake CEO is a good friend

*Chesapeake CEO has done some innovative things

*Chesapeake CEO is spending more than his cash flow, he's done that for 10 years

YAHOO CEO SAYS HE NEVER PROVIDED RESUME/Reuters: "Yahoo Chief Executive Scott Thompson never provided a resume or incorrect information to Yahoo, he told top executives at a meeting on Thursday, according to a source familiar with the matter. Thompson held a meeting with his top executives on Thursday to address a controversy over the educational background that erupted a week ago."

VIDEO GAME SALES PLUNGE 42% IN APRIL/LA Times: "Video game sales took a nose dive in April, plunging a stomach-churning 42% compared with a year earlier as companies cranked out fewer releases than in April 2011. Retailers rang up just $292.1 million in game sales last month, down from $503.2 million a year earlier, according to the NPD Group, a market research firm. With fewer new games to drive people into stores, sales of game consoles also took a hit, down 32% to $189.7 million."

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