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JPMorgan's CIO losses can't be described "in any way as a hedge," says hedge fund giant Michael...

  • Monday, May 21, 2012, 1:35 PM ET
    JPMorgan's CIO losses can't be described "in any way as a hedge," says hedge fund giant Michael Platt, whose BlueCrest capital was on the other side of the trade. "It's a trading loss. They deliberately put the positions on." "They're not out of those positions," he says and will face further losses if Europe continues to deteriorate.
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This news story has 9 comments:

  •  
    One more undeniable need to move Hedge fund operations out of the aegis of commercial and merchant Banking. Play with you own money and don't use the Bank Assets as the collateral for deals you would not undertake on your own bat.
    21 May 2012, 04:51 PM Reply Like
  •  
    1. They blew too much of their margin on these trades
    2. They didn't take advantage of structuring in enough time decay
    3. They were too sure of themselves
    4. They distorted the market by being the market (too big, a target for those looking for weak points in the whale)
    ...
    21 May 2012, 05:58 PM Reply Like
  •  
    Well, clearly the hedge fund is going to say something like that. They're going to be doing all they can to jam the media with headlines to try to pressure JPM to take off the trades early. JPM isn't that stupid. The problems the hedge funds face now is the same problem that JPM faced earlier... lack of liquidity to undo the position. So it becomes a waiting game.

    -Matt
    21 May 2012, 06:03 PM Reply Like
  •  
    The only good thing about this mess is now the longs have JPM on their side pulling for market upside. Now a "market manipulator" will be pulling for the long side. The other side of that is I'll buy with both hands when JPM heads lower with the overall market.
    21 May 2012, 08:37 PM Reply Like
  •  
    JPM keeps heading south. May even be a good buy at some point, but more downside still coming..
    21 May 2012, 09:00 PM Reply Like
  •  
    Hey, guess what? It's rumored that the senator who Demands An Investigation of JP Morgan has - as his biggest campaign contributor - (drum roll, please) you guessed it, JP Morgan !

    The Best Government Money Can Buy?
    21 May 2012, 10:05 PM Reply Like
  •  
    Why suspend the buyback if the "fortess" balance sheet is intact. The losses are mounting???
    21 May 2012, 11:17 PM Reply Like
  •  
    Why suspend the share buyback? Are the losses to the "Fortress "balance sheet mounting???
    21 May 2012, 11:19 PM Reply Like
  •  
    Losses are mounting !

    News on street saying Jamie Dimon is planning a legal name change !
    Too : Mr. Jamie C. Zirconia

    He needs to step down. As the highest paid bank CEO. He needs to do the right thing !
    22 May 2012, 05:55 AM Reply Like
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