Fed data exposes US$100bn JP Morgan blunder

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Wendy S. Delmater's picture
Wendy S. Delmater
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Joined: Dec 13 2009
Posts: 1988
Fed data exposes US$100bn JP Morgan blunder

Official data from the US Federal Reserve have laid bare the eye-watering size of trading positions built up by JP Morgan’s chief investment office in synthetic credit indices, raising further questions about risk management standards at the bank.

and

In stark contrast to JP Morgan, the Fed data show other major US banks maintained large short positions in investment-grade credit in expectation of a continuation of the rocky market environment that persisted throughout the second half of 2011. All US banks are obliged to report such data to the Fed.

JP Morgan was a complete outlier among its peers, most of which decided to load up on investment grade credit protection in preparation for a deterioration in credit markets (see chart).

http://www.ifre.com/derivatives-fed-data-expose-us$100bn-jp-morgan-blunder/21019578.article

So. JPM is the new Bear Sterns? Discuss.

Dogs_In_A_Pile's picture
Dogs_In_A_Pile
Status: Martenson Brigade Member (Offline)
Joined: Jan 4 2009
Posts: 2606
safewrite wrote:   So.
safewrite wrote:

 

So. JPM is the new Bear Sterns? Discuss.

Hope so.  Fook 'em...

pinecarr's picture
pinecarr
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Posts: 2244
And I thought I was a screw

And I thought I was a screw up!  I guess it's once again a matter of scale!

Quercus bicolor's picture
Quercus bicolor
Status: Gold Member (Offline)
Joined: Mar 19 2008
Posts: 470
re: a matter of scale

pinecarr,

Assuming your screw up can be measured in dollars, it would be interesting to estimate how many orders of magnitude larger JPM's is.

Steve

pinecarr's picture
pinecarr
Status: Diamond Member (Offline)
Joined: Apr 13 2008
Posts: 2244
Steve, I have no idea, but

Steve, I have no idea, but you made me laugh, and that's always a good thing!   

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