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Gains and losses on derivative exposure
In 2Q09, JPM recorded net gains on derivatives of $16 million in earnings after recording $6 billion of gains from trading activities offset by losses of $4.6 billion on risk management activities and by losses of $1.4 billion on fair value hedges. Risk management activities include fair valuation of the derivatives used to mitigate or transform the risk of market exposures arising from banking activities other than trading activities.Now, you tell me... With the advent of FASB caving in to politicians and Wall Street special interests and allowing financial entities to basically rewrite the profit and loss statements of non-marketable (actually there is no such thing, let's call it "assets whose market price management does not like the sound of") assets, what are the chances that JP Morgan fudged the results just a little bit, in order to eke out that $16 million gain, which is actually about a 0.267% profit margin!
In 2Q09, JPM recorded net gains on derivatives of $16 million in earnings after recording $6 billion of gains from trading activities offset by losses of $4.6 billion on risk management activities and by losses of $1.4 billion on fair value hedges. Risk management activities include fair valuation of the derivatives used to mitigate or transform the risk of market exposures arising from banking activities other than trading activities.Now, you tell me... With the advent of FASB caving in to politicians and Wall Street special interests and allowing financial entities to basically rewrite the profit and loss statements of non-marketable (actually there is no such thing, let's call it "assets whose market price management does not like the sound of") assets, what are the chances that JP Morgan fudged the results just a little bit, in order to eke out that $16 million gain, which is actually about a 0.267% profit margin!
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