What do they have in common? Apparently not much except that they recently announced some big losses.
In JPMorgan’s case, it is the result of some very bad investments that went unnoticed. I guess that kind of things happen when you are in the investment business.
For Microsoft it’s the result of an investment made 5 hers ago in an internet advertising company.
JPMorgan has estimated the amount of money lost between $2B and $4B.
Microsoft did even better with a write off over $6B.
What really got me thinking is that in the case of JPMorgan the story really made a very big deal. So big that the CEO had to appear in from of congress twice.
Strangely enough Microsoft misfortune went pretty much unnoticed even if it’s much larger. Why that?
In both cases the losses are the end result of bad investments, so why should they be considered differently.
Microsoft has consistently lost money on every internet venture they got involved into. Their online division has already lost more than $5B (that was before the last announcement). If Microsoft online businesses were independent startups they would have been forced to shutdown a long time ago because no venture capitalist would accept to loose that much money. Still, does not matter. Nobody cares.
Quite striking, especially if you put the two events in perspective.