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Amherst Holdings

There is an article today in the WSJ (page 1, top) that describes how Amherst Holdings stuck it to JPM and BAC.  It also mentions that JPM and BAC feel "cheated".&n...

In short, Amherst sold these banks credit default swaps on some bonds.  Somehow, Amherst boosted the price of these bonds such that the CDS's were worthless. 

If true, I find the complaints of BAC and JPM to be disgusting.  First, if they owned these bonds, they should be happy that they went up in price.  If they didn't own these bonds, then why where they buying the CDS's on these bonds?  Pure speculation of course.  I find it hard to believe that JPM and BAC haven't engaged in any similar activities over the last 10 years.  Let's be real. 

I can't believe these firms would whine about this trade.  Very hypocritical.  They just got beaten on the trade, pure and simple.  Nothing unethical about what happened.

I am looking at some small caps right now - CODI, BBEP, ALIF, FEED.

Anything pops up, I will post an article on this sight.