Reuters published an exclusive story this morning:U.S. banks told to make secret plans for preventing collapse
Buried in the final paragraph:
In a presentation in March, JPMorgan Chase said it had a recovery plan in place and said it was ordered by regulators. The presentation was organized by Harvard Law School and was closed to the media at the time, but is now available online.
Here's the BEST part of the JPM document.
It's easy to see on the PDF:
Go to page 9. Under the wipeout scenario JPM describes a $50 billion trading loss turning into a $200 billion loss as soon as the FDIC takes over. Why... ? Because JPM says they would expect the FDIC to immediately writedown JPM's assets by an additional $150 billion.