JP Morgan--my take--read the fine print:
In JPMorgan Chase Trading Bet, Its Confidence Yields to Loss - NYTimes.com: " . . . In the case of the trade that generated the huge loss, the insurance on the contract does not come due until 2017, so JPMorgan could potentially hold off any actual losses until then. If the economy improves, the cost of insuring American companies could drop again. But now that the London Whale’s trade is public, hedge funds could force the cost of this specific insurance contract up, and with it JPMorgan’s paper losses. This is what appears to be happening now.
On Friday, the insurance index spiked sharply, bringing it up 32 percent from its low in March.
“There are no buyers or sellers in the market right now. Because of that, it is impossible for JPMorgan to get out of this trade,” said Gennaro Pucci, who oversees the PVE Macro Credit Fund in London. “These positions, which made sense for them to put on, just become impossible to manage when liquidity dries up.”
A senior Wall Street executive said on Friday: “JPMorgan violated the cardinal rule of risk: Don’t become the market.”"
Tweet Follow @johnmpoole
When the facts change, I change my mind. What do you do? -- John Maynard Keynes
The Big Picture
Financial Crisis - The Telegraph
JohnTheCrowd.com | The Sailing Website
Craig Newmark - craigconnects
- ► 2015 (131)
- ► 2014 (368)
- ► 2013 (380)
- We Can't Afford War No More
- Chen Guangcheng was not an exceptional case
- Greece: “The situation is getting out of hand”
- An Exit Strategy for Greece et al
- The Truth About Private Equity
- The Next Pension Crisis
- Obama's Problem In A Nutshell
- Barney Frank Does Not Want Secret Service at Wedding
- What's wrong with Obama's Bain ad?
- Obama: Losing Women
- Obama: Running a Losing Campaign
- Good News for Android Users
- Obama's in charge - be careful where you fly!
- The Facebook Fad
- No "bot" here
- In JPMorgan Chase Trading Bet - read the fine print
- Greece and the Eurozone: Voting with your Money
- How I Fixed the Tax Code (In Half a Day)--another ...
- The Greek Drachma Cometh--are the Fed and U.S. Tre...
- James Carville: Democrats could lose
- EPA Official On Oil Companies: 'Crucify Them'
- Will Higher Tax Rates Balance the Budget?
- Student Debt--a problem the government created
- More on Obama's "Evolution"
- President Obama Flip-Flops on Gay Marriage
- Google rebuffs FCC -- yeah Google!
- FTC Wastes Taxpayer Funds "Investigating" Google
- You can forget about housing coming back soon
- Real Estate Trend: downsize for hassle-free living
- Enjoy the day by the sea
- Loeb Demands Yahoo Board Fire CEO
- Best time to send email so it will get read
- Scriptkitty Dreams [video]
- Gallup: U.S. Unemployment Rate Up in April to 8.6%
- Obama's dog-eating jokes make crategate a non-issue
- California Student Had To Drink His Own Urine To S...
- The Hard Thing CEOs and Presidents Have To Do
- Dan Rather: Mitt Romney has "a good chance of beco...
- ▼ May (38)