Exclusive: JPMorgan bet against itself in "Whale" trade

Comments (4)
Harry079 wrote:

This isn’t anything new the Hedge Fund that caused the Whale’s losses was run by nearly all ex JP Morgan employees. They probably let some of their JP Morgan friends in on the gig.

Jan 29, 2013 6:22pm EST  --  Report as abuse

Being on both sides of a trade means they were initially trying to manipulate the price in their favor to make money off the larger trade. This what they do in the silver manipulation scheme that no one wants to acknowledge yet is so evident and obvious. But soon, it will be exposed and hopefully they will all go to jail.

Jan 29, 2013 6:52pm EST  --  Report as abuse
DimSum wrote:

so one division won and the other division lost – the net gain/loss of the bank should be zero. The bank would lose only if it’s the traders themselves bet against the bank. And in that case, it’s a clear criminal case.

Jan 29, 2013 7:00pm EST  --  Report as abuse
xyz2055 wrote:

JPMorgan invented the CDS. It’s the same financial weapon of mass destruction that bankrupted AIG. It’s one of the most non-liquid financial vehicles there are. And it’s akin to putting your entire stake on the “come” line in Las Vegas. No problem if it’s your own money. It’s a totally different proposition if you’re a publicly traded company. Our financial institutions were rock solid for 40 years under Glass-Steagell. They collapsed in less than 10 years after it was repealed.

Jan 29, 2013 8:08pm EST  --  Report as abuse
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