Nice Golden Parachute

Discussion in 'Financial Cents' started by Clyde, May 17, 2012.


  1. Clyde

    Clyde Jet Set Tourer Administrator Founding Member

  2. Clyde

    Clyde Jet Set Tourer Administrator Founding Member

  3. TheEconomist

    TheEconomist Creighton Bluejay Site Supporter+

    JP morgan is still ranked as one of the top 20 earners in banking by bloomberg, using decent metrics. Crazy to think a bank can lose that much money until you realize that they have 2.265 trillion in total assets....

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    Ok I am going to add to this via the edit option because it is unreal what happened.

    Basically

    1) Guy makes bets on Derivatives of Derivatives (these things are put together like this. CDS Fails -> Bank Pays you and keeps contract CDS Paid Off -> You pay your premuims and see no losses...bank makes money

    2) Hedge funds and OTHER DIVISIONS OF JPMORGAN CHASE are betteing AGAINST this guy

    3) CDS's they had -> Fail

    4) Other banks and investors make money, JPMorgan chases loses

    5) Not all of JPMorgan loses as the other divisions make money...thus a semi succesful hedge

    6) The division that BMI (Bruno Michel Iskel..or something like that) works in under Ina Drew is a FIXED INCOME division. This division is reported to show an $800 million loss for the quarter.

    7) whos hurt? Pension plans and fixed income programs....IE usually the every day joe or a government entity.

    Crazy
     
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