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JPMorgan Chase Sells Off All Short-Term U.S. Government Debt

RDS

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The ripple effects are starting despite the low chances of a default.
NEW YORK (AP) — JPMorgan Chase says it has sold all of its exposure to short-term U.S. government debt out of its money market funds, following a similar move by other money market mutual fund managers.
The news comes a day after Fidelity Investments said it no longer holds any U.S. government debt that comes due around the time the nation could hit its borrowing limit.
In a statement Thursday, JPMorgan said its money market funds no longer held any U.S. Treasurys that mature or have payments scheduled between Oct. 16 and Nov. 6. The bank says it has also increased its liquidity position in the funds.
While JPMorgan Chase & Co. says it believes the probability of a U.S. government default is low, it's taking precautionary measures to protect investors.
JPMorgan Chase Sells Off All Short-Term U.S. Government Debt
 

washunut

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The ripple effects are starting despite the low chances of a default. JPMorgan Chase Sells Off All Short-Term U.S. Government Debt

The title of your thread is misleading. Read the first sentence of what you posted. The debt JPM sold was only in their money market funds, same as Fidelity did. They did this because of technical reasons on how they would be valued in law not in practice so were concerned about "breaking the buck". We don't know to whom they sold that debt to, could have been a JPM fund that would not have the same type of concern.
 

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JPMorgan has been selling off it's short term debt for the last 18 months. I called a financial advisor at Chase today and he said the management really believes congress is going to resolve this before they default. I hope he's right.
 

Linc

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I strongly advise a Carl Bernstein clip with Lawrence O'Donnell Wed. night if I haven't mentioned it..
He destroys the idea of 'false equivalency' in which Repubs debate they have come half-way, AFTER they have shut 'er down..
The Koch brothers letter wiped the smirk off of Cantor's face..
And T-bills cost more for the govt. to issue..
And the Koch bros lost untold millions Tuesday night, hence their letter to Repubs in Congress..
Politico Headline: Krauthammer: Where is Cruz now?
More: Limbaugh backs Cruz against GOP
JPMorgan has been selling off it's short term debt for the last 18 months. I called a financial advisor at Chase today and he said the management really believes congress is going to resolve this before they default. I hope he's right.
 
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RDS

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washunut

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Is he hoping to get a discount on JPMs legal liabilities, which this week he said may be as high as $23 billion. Maybe holder will give him a 10% discount, so the statement may be worth $2.3 billion to JPM shareholders.

Wonder if he makes 10 administration friendly statements could the legal liabilities totally go away. Perhaps analysts following JPM will revise estimates higher.
 

RDS

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Is he hoping to get a discount on JPMs legal liabilities, which this week he said may be as high as $23 billion. Maybe holder will give him a 10% discount, so the statement may be worth $2.3 billion to JPM shareholders.

Wonder if he makes 10 administration friendly statements could the legal liabilities totally go away. Perhaps analysts following JPM will revise estimates higher.

I personally think default is unlikely. We will see how it goes anyway.
 

washunut

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I personally think default is unlikely. We will see how it goes anyway.

I hope it is to well. If the debt limit debate has a short term blip I think it could present a large buying opportunity.
 

RDS

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I hope it is to well. If the debt limit debate has a short term blip I think it could present a large buying opportunity.

I don't play with volatility.
 

washunut

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I don't play with volatility.

Can't go to wrong following a key Buffett maxim in my view. But that is what makes markets.
 

SMTA

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RDS

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Rogue traders are nothing new.
 

joG

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Rogue traders are nothing new.

And that is the real truth. All you can do is try and improve surveillance continuously, be merciless with offenders and pray.
 
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