Comments on: JP Morgan: When basis trades blow up http://blogs.reuters.com/felix-salmon/2012/05/10/jp-morgan-when-basis-trades-blow-up/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: sameer http://blogs.reuters.com/felix-salmon/2012/05/10/jp-morgan-when-basis-trades-blow-up/comment-page-1/#comment-56101 Sat, 25 Oct 2014 18:00:40 +0000 http://blogs.reuters.com/felix-salmon/?p=13930#comment-56101 This can be very valid idea as raised within the web blog. Admire talking about around.

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By: Lester Loiseau http://blogs.reuters.com/felix-salmon/2012/05/10/jp-morgan-when-basis-trades-blow-up/comment-page-1/#comment-55716 Mon, 20 Oct 2014 14:59:03 +0000 http://blogs.reuters.com/felix-salmon/?p=13930#comment-55716 Political deaths aren’t any anathema to Kerala, however killing in Chandrasekharan had been a resonating logo from the collected consciousness in the community. She seemed to be stabbed in the face 49 periods, additionally, the destroying seemed to be carried out not even by motivated cadre nevertheless by appointed murderers. Thus lie the tentacles associated with a unsettling communal trend.

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By: ColonelAngus http://blogs.reuters.com/felix-salmon/2012/05/10/jp-morgan-when-basis-trades-blow-up/comment-page-1/#comment-39141 Thu, 17 May 2012 07:14:52 +0000 http://blogs.reuters.com/felix-salmon/?p=13930#comment-39141 Just for good order I have never seen a more clearer admission of fault and guilt by a governing officer of a bank and yet he is still retained by the shareholders.
Unless he runs his business like the Murdochs he was obviously aware that this was a straight out punt which went wrong. So why does he still have a job ?
The answer is that the democrats are one of the best republican parties (in disguise) that have ever occupied the white house.

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By: rg.williams http://blogs.reuters.com/felix-salmon/2012/05/10/jp-morgan-when-basis-trades-blow-up/comment-page-1/#comment-38947 Mon, 14 May 2012 02:34:59 +0000 http://blogs.reuters.com/felix-salmon/?p=13930#comment-38947 At a minimum, CEO Dimon should resign from the NY Fed if not from JP Morgan Chase, as well.

One would think after the fiasco of the 2007-2008 financial crisis, the too-big-to-fail (“TBTF”) banks would have learned a lesson about risk management — but, no, here we are again with JP Morgan Chase losing $2+ billion of their “own” money — and under the leadership of CEO Dimon who is one of those most vocal against limiting the banks’ proprietary trading under proposed legislation.

The shareholders, bondholders and managements of these TBTF banks should pay the price for “mistakes” such as JP Morgan Chase’s recent fiasco. However, the US taxpayer remains on the hook just as in the 2007-2008 financial crisis.

Banks have been granted their “franchises” and given preferential treatment to serve the needs of the general economy and to facilitate the movement of funds between individuals/entities wanting to have a relatively safe haven for their excess liquidity (aka, depositors) and those needing to borrow those resources. Proprietary trading of the TBTF banks’ “own” funds has little place in this economic environment — those funds should be distributed to the shareholders who can then invest in riskier asset classes under their own decision regimen. If a hedge fund investment is what they want, then let them make a conscious decision to invest in a hedge fund, without any Federal guarantee of the investment.

This approach would take much of the burden off US taxpayers to correct the ” sloppy” and “stupid” decisions (CEO Dimon’s own adjectives) that have been made by the TBTF banks in the post-Glass-Steagall era.

For more on the interaction of financial and political decision-making, see http://theviewfromthemiddleoftheroad.blo gspot.com/.

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By: thebeorn http://blogs.reuters.com/felix-salmon/2012/05/10/jp-morgan-when-basis-trades-blow-up/comment-page-1/#comment-38943 Sun, 13 May 2012 20:47:40 +0000 http://blogs.reuters.com/felix-salmon/?p=13930#comment-38943 realist50 you ask so what? How interesting that you dont mind a bank using taxpayer insured money to gamble for their own profit. This happened in the late 80’s as well and gave us the savings and loan crisis with the resulting Resolution trust bank to clean the mess up. Additionally we are are allowing these banks to borrow money essentially at 0% interest at the expense of those who have saved and so are getting nothing for their thriftiness and then using this money not to make loans and grow the economy but to place bets …..how sad that even knowing this you and others dont care….

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By: Pohadka http://blogs.reuters.com/felix-salmon/2012/05/10/jp-morgan-when-basis-trades-blow-up/comment-page-1/#comment-38939 Sun, 13 May 2012 13:42:15 +0000 http://blogs.reuters.com/felix-salmon/?p=13930#comment-38939 On the subject of CDS and the unclear raison d’etre for JP Morgan’s humongous bet: JP has indeed had a more favourable CDS than the other US big banks. Could the bets have been made to influence the bank’s own CDS? It wouldn’t be the first time it’s been attempted: http://uti.is/2012/04/bruno-iksil-the-10 0bn-bet-and-jp-morgans-cds/

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By: Anonymous http://blogs.reuters.com/felix-salmon/2012/05/10/jp-morgan-when-basis-trades-blow-up/comment-page-1/#comment-38933 Sun, 13 May 2012 03:31:58 +0000 http://blogs.reuters.com/felix-salmon/?p=13930#comment-38933 www.senlikzamani.com

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By: maxi_milian http://blogs.reuters.com/felix-salmon/2012/05/10/jp-morgan-when-basis-trades-blow-up/comment-page-1/#comment-38922 Sat, 12 May 2012 15:05:03 +0000 http://blogs.reuters.com/felix-salmon/?p=13930#comment-38922 Everyone is smarter after the fact occurence, even though things that happen in the future are uncertain. Heding some illiquid positions is a very tricky business… What if JPM didn’t do any macro-hedge, their short position (whatever that is) went sour, causing a 1 bn loss, and CDX spreads actually tightened? then JPM bankers would have been lynched for not managing their risks properly. so whatever you do, you might be right or wrong in the retrospect – banking is a risky business, means future outcomes are uncertain, and some trades or hedges might not work as envisioned. as long as this stays within amounts manageable for an institution without causing systemic effects, that should be fine, even though the media and public are keen for hot stories… 2bn loss sounds pretty substantial to fire some people and rethink the limits for JPM… the regulators are meanwhile familiar with the financial markets business complexities and limitations, so hopefully will make a good decision on whether such risk taking needs tighter regulation or it is rather a propriatary problem of the bank and its owners .

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By: ptiffany http://blogs.reuters.com/felix-salmon/2012/05/10/jp-morgan-when-basis-trades-blow-up/comment-page-1/#comment-38912 Fri, 11 May 2012 19:20:31 +0000 http://blogs.reuters.com/felix-salmon/?p=13930#comment-38912 Catfish, what are you talking about? What’s two billion dollars to a beheamoth like JP Morgan Chase – a week of profit or loss?

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