They have no incentive to reduce risk. They have the central banks as a back stop. Plus the executives and board members today own a very small float of the banks they run. They aren't risking they're money. Like most companies. CEOs wk for 5 yrs, make their cash and bolt. They don't care about the firm once they leave.
So JP Morgan lost 2 or 3 billion.. big deal!
- Thread starter ChkitOut
- Start date
Nope thats their bet.
"The 10-year Markit CDX North America Investment Grade Index Series 9, an older, less-active benchmark for credit-default swaps created in 2007 in which JPMorgan trader Bruno Iksil in London was said to have amassed as much as a $100 billion position, jumped the most in almost eight months on May 11. Another index contract that takes more concentrated risks on the same companies recorded the biggest two-week surge in two years. "
He basically 'shorted' the index. Plus pushing it way beyond fair value. Reagardless if the trade was a spread between IG9 and IG18. My wallet says I understand the market. Bought puts when I first heard the JPM announcement was scheduled. Knowing it was Bruno's trade gone awry.....
"The 10-year Markit CDX North America Investment Grade Index Series 9, an older, less-active benchmark for credit-default swaps created in 2007 in which JPMorgan trader Bruno Iksil in London was said to have amassed as much as a $100 billion position, jumped the most in almost eight months on May 11. Another index contract that takes more concentrated risks on the same companies recorded the biggest two-week surge in two years. "
He basically 'shorted' the index. Plus pushing it way beyond fair value. Reagardless if the trade was a spread between IG9 and IG18. My wallet says I understand the market. Bought puts when I first heard the JPM announcement was scheduled. Knowing it was Bruno's trade gone awry.....
You obviously know more about the trade then i do. I know all i need to know to profit from it. Trading 101. Go bother a newb. Maybe you can impress him with your arrogance.
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Nice fundamantal info, to put it simple.. Not to worry, MS, C ,BAC ,JPM are off thier 2008 lows
MS got the WSJ to spin that 2 notch downgrade as a ''victoty'';
could have been 3 notches.
Some big banks maybe, maybe not exactly backed up by Federal Rreserve;
but that is not a prediction to save the jobs of the top managers. Remember LTCM, LEH, BSC,Washington Mutual, Countrywide.So not quite as simple as Fed backstop.=risk covered..
Well BAC maybe, maybe not making progress on thier Real Estate forclosures;they cut a loss of about 50%/+on a local loss./FC. But thier customer service still seems to line up with BAC 3 year downtrend.
Thank God many of the smaller bank charts look better than MS, C,JPM, BAC..It is hard to believe ,even in an election year;
media spins S&P Case Schiller 7 year chart or 3 year chart as positive.
. But every uptick counts even in a bear trend/buyers trend. BAC & JPM called it a bottom; thats bearish most likely
The concern i'snt that they lost a few bucks, it's that they are back to their old gambling behavior of taking on too much risk that got the TBTF banks in trouble previously when the had to ask us to bail them out. If only the taxpayer wasn't on the hook, I'd say fine do what you want and let the shareholders beware. But we are on the hook, and therefore we have a right to ask questions and demand they mend their gunslinger ways.