Euronext : UMI
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Sunday, May 13, 2012
JPM : London whale - CDS Loss $2 billion
Article : http://uk.reuters.com/article/2012/05/11/uk-jpmorgan-trading-idUKBRE8491I320120511
Mr. Dimon: "He said it wasn't clear whether the bank had broken any laws or violated any rules. "We've had audit, legal, risk, compliance, some of our best people looking at all of that."
In a conference call disclosing the problem on Thursday, Dimon said the $2 billion in losses could rise by a further $1 billion, and acknowledged they were linked to a London-based credit trader Bruno Iksil. Nicknamed the 'London Whale', Iksil amassed an outsized position which hedge funds bet against, according to a report in The Wall Street Journal in April.
The exact nature of the trading loss is still unclear, although sources said a host of asset managers, arbitrageurs and hedge funds were on the other side of the bet, viewing it as good value and a effective way to insure portions of their portfolio.
Blue Mountain, a hedge fund with offices in New York and London, was among those on the other side of JPMorgan's trade, according to two people familiar with the situation.
The Democrat co-authored the 2010 Dodd-Frank financial reform law designed to avoid a repeat of the recent credit crisis.
=> We need to regulate the CDS market, trade them when we have a real exposure to the underlying asset.
Mr. Dimon: "He said it wasn't clear whether the bank had broken any laws or violated any rules. "We've had audit, legal, risk, compliance, some of our best people looking at all of that."
In a conference call disclosing the problem on Thursday, Dimon said the $2 billion in losses could rise by a further $1 billion, and acknowledged they were linked to a London-based credit trader Bruno Iksil. Nicknamed the 'London Whale', Iksil amassed an outsized position which hedge funds bet against, according to a report in The Wall Street Journal in April.
The exact nature of the trading loss is still unclear, although sources said a host of asset managers, arbitrageurs and hedge funds were on the other side of the bet, viewing it as good value and a effective way to insure portions of their portfolio.
Blue Mountain, a hedge fund with offices in New York and London, was among those on the other side of JPMorgan's trade, according to two people familiar with the situation.
The Democrat co-authored the 2010 Dodd-Frank financial reform law designed to avoid a repeat of the recent credit crisis.
=> We need to regulate the CDS market, trade them when we have a real exposure to the underlying asset.
Tuesday, May 1, 2012
Gold & China, a love story
Between 2001 and 2011, gold global demand increased by 9% from 3729t to 4067t according to the World Gold Council.
Over the same period, gold production increased by only 6% from 2646t to 2800t.
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