According to CNBC: Traders can’t help but wonder what happens in the
stock market on Wednesday, when JPMorgan CEO Jamie Dimon testifies before
Congress.
Dimon is appearing before Congress following revelations
that a unit of his bank made outsize bets in the derivative markets, resulting
in an unexpected loss of at least $2 billion for the company. While the bank said
it can absorb the loss, the incident is serving as a "told you so"
moment for those arguing for more stringent regulation of the banking industry.
“It will be a certified gong show,” said hedge fund manager
Keith McCullough.
And the tone of the hearing has the pros worried. They said if it feels as if Jamie Dimon is
struggling or uncomfortable, the Street will sell first and ask questions
later. “Guys will get tapped on the
shoulder – they’ll be told take exposure down,” explained Tim Seymour of
EmergingMoney.com. "They’ll cash out."
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