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  • JPMorgan Chase: Poisoned by Bear's 5,000 Counterparties [View article]
    Due to lack of diclosure, you have no way of knowing the so-called value of their hedged ositions. With no transparency, you are simply recommending a purley specuative investment in JPM. Additionally, you haven't noted your own exposure. I have to assume you are talking your book.


    On Dec 14 11:00 AM TomArmistead wrote:

    > If Bear Stearns operations were competently run and hedged, derivative
    > assets and derivative liablilities should net to zero or better given
    > sufficient time. The volatility of spreads creates imbalances that
    > may be temporary in nature. From where it lies, adding enough capital
    > and waiting, as Paulson et al are doing, is a workable strategy.
    >
    >
    > WaMu, when it was handed over to JPM, was adequately capitalized
    > from a statutory point of view and had substantial pre-provision
    > earnings, sufficient to cover losses as they occurred.
    >
    > I agree with ishortyou, JPM may suffer a protracted bout of indigestion
    > but it is unlikely to be fatal.
    Dec 14 18:11 pm |Rating: +2 0
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