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Hedge Funds Helping, Not Harpooning, 'London Whale' Now
There are only a few funds in the credit markets who are big enough to help manage a position the size of JPM's CIO office and, according to Bloomberg Businessweek, BlueMountain (one of the biggest) has helped JPM unwind their position by entering the market to take positions that it then sold on to the bank. This agency role is helping the bank to cover its tracks (and reducing the effectiveness and transparency of any and all DTCC data in the course of it), which argues perhaps once again for the exchange trading of these instruments (but that is another topic). While we would be sure that Blue Mountain took a wider than market bid-offer out of the middle of the brokerage move, it is nevertheless clearly a backdoor bailout of the bank's position by what is likely one of its major counterparties anyway (and why not). The activity pick-up this week makes perfect sense (as we noted yesterday) given the single-name CDS roll (and index options expiration) and as Bloomberg's Childs and Harrington note "If you were to need to move a large position, there should be greater liquidity around those days than other days, all else being equal," but as we have noted it remains unclear as to whether the original tail-risk position has been taken down at all (if so then doesn't that make JPM more risky implicitly?) or just the hedge of the hedge that got so out of hand thanks to Iksil's excess.
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Green Piece
What do you expect from a founder of BM who was a Managing Director of JPM.
Prior to co-founding BlueMountain in 2003, Mr. Feldstein spent over a decade at JPMorgan where he was a Managing Director and served as Head of Structured Credit; Head of High Yield Sales, Trading and Research; and Head of Global Credit Portfolio.
Bloomberg's Mary Childs is HOT !
And kind of interesting.
http://www.wlu.edu/x18245.xml
That looks like a portrait she painted of a scared Bernanke in the background.
Blue Mountain is the ONLY hedge fund that is a member of the Governement mandated Counterparty Risk Management Policy Group (CRMPG). As one may recall one of the big winners taking the other side of the JPM trade was was 'Blue Crest capital' which has key people that use to be with 'Blue Mountain'. Isn't interesting that their names rhyme?
In my opinion it is the CRMPG that coludes with the Fed to prop prices up through their memebers and their balck pools of liquidity.
"Whale Wars"- without the hot hippie chicks
Yes, bring another sucker into your web.
Im Melting Bitchez!
What's the difference between today's global finance system and a Ponzi scheme? This is the question that a 56-year-old veteran Russian financial scammer has been asking his victims.
http://www.webcompact.net/index.php/news/33784-is-global-finance-a-ponzi-scheme
One is being run by those that define 'legal' and the other is not.
Funny because JPM would screw them over in a heartbeat.
@midgettrannyporn
And could easily do it right here, right now.
If you dance with the devil, the devil don't change...
and the devil's gonna lead
Call to Ross Sorkin: "JPM loves BlueMountain." If Zero Hedge wasn't around to fully expose these bastards, who would?
I think Bloomberg's Mary Childs is HOT !
Yeah we got that already!
I see a restraining order in the near future for you.
please leave her childless if ever you make her feel hotter than hell!
So much for that 'let capitalism work' nonsense.
What capitalism? Where?
The one that melted in your mouth but told you it wouldn't.
Capitalism requires voluntary participation. No corecion allowed.
You see I don't remember agreeing to pay interest on the pieces of paper in my pocket. I don't remember agreeing to bailout banking companies or anyone else for that matter. That's not capitalism, dude, that's statism or whatever "-ism" you want to call it (central planning, communism, socialism, fascism, it's all the same). We are coerced into business transactions (paying a tax, bailing out some company) and then you want to blame...freedom? Or capitalism? Let's try capitalism for a while. It might be a welcome change.
it doesn't exist in a vacuum; try wrestling with that. It needs a power structure and a government, to be played on a level field, to not go feudal! That ring a bell?...Can't have it both ways; or else you're like a woman, a sister sharon in elmer gantry, who wants absolution and ends up getting...double...you know who!
I disagree. No government is necessary.
GeneMarchbanks
Yum.
Wait...what?
still waiting to hear one piece of news that would indicate that any part of any market is not rigged by bastards.
it'll be a shoking day!!!
Ah the crony captialism betwen PDs and HFs, all in that precious sanctity of shitty-titty London, the one square mile, iconic expression of fair play like cricket at Eton.
HFs are the immediate remora to the banking sharks yet it by no means ends there. Get your feed. No shark, no feed.
Meanwhile gold is heading for a (fourth) test of support at about 1535, and I don't think support will hold this time. I sense that the world is running out of money despite the best efforts of the CBs.
He is probably on a beach in Fiji.
From Die Hard:
Hans Gruber: ... they'll spend a month sifting through rubble, and by the time they figure out what went wrong, we'll be sitting on a beach, earning twenty percent.
The buy side acting as broker for the sell side.
Nice one JD. Points for innovation anyway...
The would be Ahabs are left bobbing on empty seas hailing each other: “Hast thou seen the London Whale?!”
Blue Mountain, doing their part to "save the system". I'm ure they will be given a title of some sort....Blue Mountain protector of the realm.
Hand of the king, until they find out the king is illegitimate. Then they will get their head chopped off!
the head of Bluemountain will be showing up to the next congressional open mic night wearing JPM cufflinks and a pair of blythe's silver shortz.
so instead of dealing direct, they are unwinding and washing the trade name with a broker/ middleman?
who is the middleman turning it with???? hmmmm, another hedge fund,.... NOPE who is left.??? Hmmmm?
wow the prices paid must be astronomic, $ 5 to 10 B loss now? MORE??????
hedge funds are a red herring....
http://covert.ias3.com/expose/
Market collusion at it's finest.
Hey, Jamie. Maybe you can find your Magic Torch and get the Wordsworth regulators to follow yyou down the helter skelter.
http://www.youtube.com/watch?v=KeMMow_Itqw
I fucking doubt it.