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Thread: JPMorgan Loses $2 Billion in Chief Investment Office

  1. #41
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    Re: JPMorgan Loses $2 Billion in Chief Investment Office

    Everybody seems to be talking about the NYC office of JPMorgan and therefore show they haven't been reading the actual news sites.


    Bruno Iksil – nicknamed the London Whale - is a Frenchman who works in the London offices of JPMorgan.



    JP Morgan trader 'London Whale' blows $13bn hole in bank's value

    Iksil was part of team based in JP Morgan's London head office, which was supposed to hedge – or insure – the risks the bank was running. The biggest was credit risk, essentially the chance of customers failing to pay their bills – and the bank had a new strategy to hedge this risk.

    Iksil was one of a number of traders involved in this, but the size of his trade in credit default swaps attracted the attention of his rivals. His positions were so large that he was said to be moving prices in this market. In particular, Iksil offered insurance against companies defaulting on an obscure index of 125 companies known as CDX IG 9. The companies on the IG 9 index were as varied as Campbell's Soup, Time Warner and Walt Disney. During his time at JP Morgan, Iksil is reported to have generated $100m, and is usually known for his bearish stances, performing particularly well during downturns.

    There is thought to be more than one high-profile trade behind the losses – which the bank has admitted could escalate.
    Link to a clip from Bloomberg.tv JPMorgan Loss May Be `Tip of Iceberg
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    Re: JPMorgan Loses $2 Billion in Chief Investment Office

    The CEO should quit now. End of story!

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    Re: JPMorgan Loses $2 Billion in Chief Investment Office

    Quote Originally Posted by RDS View Post
    The CEO should quit now. End of story!
    If you knew anything about the performance of JP Morgan during Dimon's leadership you would be embarrassed by the above.

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    Re: JPMorgan Loses $2 Billion in Chief Investment Office

    Quote Originally Posted by washunut View Post
    If you knew anything about the performance of JP Morgan during Dimon's leadership you would be embarrassed by the above.
    One bad risk taking decision to the tune of $2 billion wipes away all the good performance. He is answerable to the shareholders.

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    Re: JPMorgan Loses $2 Billion in Chief Investment Office

    Quote Originally Posted by RDS View Post
    One bad risk taking decision to the tune of $2 billion wipes away all the good performance. He is answerable to the shareholders.
    Of which I am one. The company makes $4-5 billion per quarter.

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    Re: JPMorgan Loses $2 Billion in Chief Investment Office

    Quote Originally Posted by washunut View Post
    Of which I am one. The company makes $4-5 billion per quarter.
    Can they maintain that profit now with the $2 billion loss?

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    Re: JPMorgan Loses $2 Billion in Chief Investment Office

    Quote Originally Posted by RDS View Post
    Can they maintain that profit now with the $2 billion loss?
    They will make somewhat less in the next quarter, but that does not change the business longer term.

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    Re: JPMorgan Loses $2 Billion in Chief Investment Office

    Quote Originally Posted by washunut View Post
    They will make somewhat less in the next quarter, but that does not change the business longer term.
    The point is some heads must roll with the $2 billion loss. I will roll the CEO's head if I am on the board. The main culprit who did the transaction his head rolls without saying.
    Last edited by RDS; 05-13-12 at 03:40 AM.

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    Re: JPMorgan Loses $2 Billion in Chief Investment Office

    Quote Originally Posted by RDS View Post
    The point is some heads must roll with the $2 billion loss. I will roll the CEO's head if I am on the board. The main culprit who did the transaction his head rolls without saying.
    No he was not the culprit of this transaction. I would agree that the person who was responsible needs to go.

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    Re: JPMorgan Loses $2 Billion in Chief Investment Office

    Quote Originally Posted by washunut View Post
    No he was not the culprit of this transaction. I would agree that the person who was responsible needs to go.
    I did not mean he was the culprit. Anyway see how it goes.

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