JPMorgan Chase Sells Off All Short-Term U.S. Government DebtNEW 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.
The ripple effects are starting despite the low chances of a default. JPMorgan Chase Sells Off All Short-Term U.S. Government Debt
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.
The ripple effects are starting despite the low chances of a default. JPMorgan Chase Sells Off All Short-Term U.S. Government Debt
U.S. Fiscal Impasse Widens as Senate Leaders Open Talks - Bloomberg“The United States cannot default and, in my opinion, will not default,” JPMorgan Chief Executive Officer Jamie Dimon said at a financial industry conference in Washington. “It would ripple through the global economy in a way you couldn’t possibly understand.”
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.
I don't play with volatility.
That is what makes these companies great. They do not take undue risk.
WASHINGTON -- JPMorgan Chase will pay $920 million and has admitted that it failed to oversee trading that led to a $6 billion loss and renewed worries about serious risk-taking by major banks.
You have no idea about recent business headlines, do you!?
JPMorgan to pay $920 million in fines for London trading fiasco - San Jose Mercury News
Rogue traders are nothing new.
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