This page has been archived and commenting is disabled.
JPMorgan Trader Accused Of "Breaking" CDS Index Market With Massive Prop Position
Earlier today we listened with bemused fascination as Blythe Masters explained to CNBC how JPMorgan's trading business is "about assisting clients in executing, managing, their risks and ensuring access to capital so they can make the kind of large long-term investments that are needed in the long run to expand the supply of commodities." You know - provide liquidity. Like the High Freaks. We were even ready to believe it, especially when Blythe conveniently added that JPM has a "matched book" meaning no net prop exposure, since the opposite would indicate breach of the Volcker Rule. ...And then we read this: "A JPMorgan Chase & Co. trader of derivatives linked to the financial health of corporations has amassed positions so large that he’s driving price moves in the multi-trillion dollar market, according to traders outside the firm." Say what? A JPMorgan trader has a prop (not flow, not client, not non-discretionary) position so big it is moving the entire market? And we are talking hundreds of billions of CDS notional. But... that would mean everything Blythe said is one big lie... It would also mean that JPMorgan is blatantly and without any regard for legislation, ignoring the Volcker rule, which arrived in the aftermath of Merrill Lynch doing precisely this with various CDO and credit indexes, and "moving the market" only to blow itself up and cost taxpayers billions when the bets all LTCMed. But wait, it gets better: "In some cases, [the trader] is believed to have “broken” the index -- Wall Street lingo for the market dysfunction that occurs when a price gap opens up between the index and its underlying constituents." So JPMorgan is now privately accused of "breaking" the CDS Index market, courtesy of its second to none economy of scale and fear no reprisal for any and all actions, and in the process causing untold losses to, you guessed it, its clients, but when it comes to allegations of massive manipulation in the precious metals market, why Blythe will tell you it is all about "assisting clients in executing, managing, their risks." Which client would that be - Lehman, or MFGlobal? Perhaps it is time for a follow up interview, Ms Masters to clarify some of these outstanding points?
From Bloomberg:
The trader is London-based Bruno Iksil, according to five counterparts at hedge funds and rival banks who requested anonymity because they’re not authorized to discuss the transactions. He specializes in credit-derivative indexes, an off-exchange market that during the past decade has overtaken corporate bonds to become the biggest forum for investors betting on the likelihood of company defaults.
Investors complain that Iksil’s trades may be distorting prices, affecting bondholders who use the instruments to hedge hundreds of billions of dollars of fixed-income holdings. Analysts and economists also use the indexes to help gauge interest rates that companies must pay for new credit.
Though Iksil reveals little to other traders about his own positions, they say they’ve taken the opposite side of transactions and that his orders are the biggest they’ve encountered. Two hedge-fund traders said they have seen unusually large price swings when they were told by dealers that Iksil was in the market.
So how long until Bruno Iksil, and his massive one way bet, becomes the next Glenn Hadden, or the next Howie Hubler, or the next Boaz Weinsten? And how long until US taxpayer have to bail him out, either with direct rescue money, or with commingled deposits used to plug trading losses? Because MFGlobal was just an appetizer as to how JPM operates with "segregated" money.
Repeating the punchline again, because it bears repeating.
In some cases, Iksil is believed to have “broken” the index -- Wall Street lingo for the market dysfunction that occurs when a price gap opens up between the index and its underlying constituents, the people said. The persistence of price dislocations has frustrated some hedge funds that were betting on the gap to close over time, the people said.
And that, for those confused, is how JPMorgan operates: they lie about everything, fully aware they have perpetual immunity because they are more powerful than the Fed (just recall Jamie Dimon's symbolic spitting in the face of Ben Bernanke), they are a tri-party repo dealer thus in the center of the entire shadow banking system, and have the biggest single-bank derivative exposure in the world, at $70 trillion as of December 31.
JPMorgan is modern finance.
And because of they they can and will get away with everything, lying on prime time TV most certainly included.
Yet while JPMorgan may manipulate the gold, silver, or any other market, for its or the Fed's agenda, there is a silver lining: it allows everyone to buy physical assets at artificially deflated paper spot prices. And for that, JPM should be thanked. Because until the grand reset takes place, JPMorgan will never be held accountable for any of its actions in the current status quo regime. Period.
»
- 33364 reads
- Printer-friendly version
- Send to friend
- advertisements -
1. "Where's the money?"
2. "How do you get it back?"
Questeions for the century for sure.
Isn't JP Morgan fighting Yen Libor manipulation allegations, too?
Max Fischer, Civis Mundi
And the amazing Ms. Shapiro and Mr. Gensler sit and watch and wait for a phone call from Mr. Dimon to tell them exactly what and what not to do...
The illusion of power in creating fake GDP/Stimulus recovery programs out of monopoly money has bestowed a toll on MMT global recovery Ph.D. dickweeds. Just sit back and watch epic failure.
And then we have...
CFTC Orders JPMorgan Chase Bank, N.A. to Pay a $20 Million Civil Monetary Penalty to Settle CFTC Charges of Unlawfully Handling Customer Segregated Fundshttp://www.cftc.gov/PressRoom/PressReleases/pr6225-12
I must have missed this yesterday...
JPM missed it too; the penalty is too small to be visible.
I don't know about Good Friday but it's been a great Thursday for stories here.
Awesome coverage Tyler. Keep holding their feet to the fire!
Lifetime ban on any TBTF employees working for the government.
Lifetime ban on any of their lawyers or said lawyers' firms working for the government.
Close all NYC offices of the Federal Reserve and Treasury Department. Maybe open a Cleveland office for the staffs forced relocation.
No contact of any kind allowed between TBTF and Feds on pain of jail time.
That is just a start. Break up the circle jerk. At least make it inconvenient.
Depending upon government to enforce those rules...good luck.
no retired military with bank accounts over 300000$
Sigh....
Wake me up when the SEC and CFTC start filing criminal charges against JPM.
Sigh...you're correct. If they are charged (and that is a longshot in and of itself), they will pay a pittance to settle civil charges out of court. Can anyone imagine if a TBTF banker actually went to jail? ZH would explode!!!
Blythe, Blythe, Blythe. You lying fucking rat.
http://www.youtube.com/watch?v=xaPA8fGeRUc
I'm pretty ignorant, but is there any reason other than pure greed that when these bullshit CDS things blow up, the government doesn't just bail out the clients of the banks and let the banksters fight out amongst themselves as to who is liable for the trillions of fake assets they owe each other?
Am I the only one that is wishing a suicide bomber would walk into the main headquarters, take the elevator to the appropriate floor, and end "them"?
It is time for all those who have nothing left to lose to man up and start taking some of these criminals out--unless our "justice" department decides to suddenly reinstate the rule of law and, thus, indict, try, and hang them for treason. And while your at it Holder--what an appropriate name: like in "holding pattern; i.e., making no progress toward the destination as the means of sustenance (fuel) burns away--hang your self you fucking socipath.
"But... that would mean everything Blythe said is one big lie... It would also mean that JPMorgan is blatantly and without any regard for legislation,"
If I got a penny every time I hear or read this statement, I'd have enough imaginary credit (fiat) to buy all the gold in Fort Knox!
Banks finance government, hence, banks own governments.
The government will not prosecute banks. If you're pinning all your hopes on the "legal" system, well, refer to the quote above. It's not just the bankers that are serial liars.
The "justice" and "legal" systems are just convoluted frameworks used by the international criminal syndicate to stifle competition. This is not conspiracy theory, this unfortunate reality is crystalizing. The question is when will we, as a species, be able to accept it and, more importantly, decide to collectively deal with it.
The international criminal syndicate will not use its own concoction (the "legal" system) to prosecute itself. Period.
http://www.youtube.com/watch?v=LOMbySJTKpg&context=C4aa4bb1ADvjVQa1PpcFOW_DCI4ywqJyzUy70cNolSIz5DpSXOe8Q= <---- the Best SHort Film I have EVER! Seen!!
Except maybe this one.. http://www.youtube.com/watch?v=k7X7sZzSXYs
both are worth your time!
http://www.youtube.com/watch?v=l7AWnfFRc7g&list=PL3DC006F7D989097C&index=1&feature=plpp_video <--- this is as well SOOOO worth your time!
Don't waste your time on the third one. It's pseudo-science conjecture designed to tool one worlders.
They lie? Of course they lie.. They lie under oath. Of course they will lie on crap nothing but crap.
con•cu•bine
~//~
http://www.youtube.com/watch?v=UmBzR4Wsevg
http://bible.cc/revelation/13-16.htm ...oh Bruno! ...oh Bruh ...Ruh ...Uno! You and Blythe Masters piece of humble pie is sealed in your belly. The $ mark ...wait for it ....wait for it ...OK ...now ...of the beast (lol), now in your hand, defines your judgment day has past and your physical (lol) return reward is aaah coming in short (lol) order. http://www.youtube.com/watch?v=DdPrMxFgLUo No Passover or Resurrection for you. Your own Antichrist lack of mercy is beating the ''resign'' and run away way way out of town drum. It's ''The Easter Bunny Hop to the Jungle'' get out of town, cuz from here on out it's always going to be ''time to get jumped ...bitchezz'', for you. http://www.youtube.com/watch?v=xWVxI6XZAuE
Who will you invite to your houses for the Holy Days? ...the one's that bring forth your monitary child sacrifice, filling their pockets with the mark of the beast too? ...the same people that hold life in contempt and would invite you scumbags to their whore house of Babylon? ...no doubt. Ask yourself, ''can you ever trust your cooks again after they find out about you? Lol. http://www.youtube.com/watch?v=vzknhw82WKs
http://www.youtube.com/watch?v=XonFZjuyc6E
FRRREEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEDOM BEAAAATCHES!
reminds me of my best halloween....went as the passion of the mel mel- bunny ears and basket, kilt. half blue and white face...emphasis on the white face, purple robe/crown of thorns. flowing black mel mel wig...in the basket- easter grass. jumbo clear egg filled with hagisth/corned beef substitute. bello0wing at the top of my lungs all night.............
MARY ! MARY ! IT'S THE JEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEWS!
LMAO, ...can't stop laughing.
That was so Lewis Black. Lol.
http://www.youtube.com/watch?v=fphDnT36W4w
http://bible.cc/daniel/2-45.htm
...your shits in the wind troop. http://www.youtube.com/watch?v=SYkbqzWVHZI
http://www.biblegateway.com/passage/?search=Revelation+2%3A17&version=KJV
MF GLOBAL is a time bomb ticking away. Yet, we need all lemmings to get back into the investment game or we will Fuck over every investment you hold with us. Ignore the idol threats and muppet stream media (MSM) soundbites. The government thieves are painted into a corner.
They are painted in a corner but not out of breath yet. The frequency of interventions since MFGlobal has been breathtaking by itself.
- MFG - Nov 2011
- LTRO - talk up every week
- BAC went 100% higher from Dec 2011 into March 2012
- Talk the market up every week- keep the market up
- Greek default - not over yet - talk the market up
- MFG not over yet - talk the market up - keep the market up
- Marketwatch openly invites people into the casino - market goes up
- JPM corners the CDS market - Today - market goes up
- Brian Sack resigns - market goes up - Apr 2012
From Nov 2011 til Apr 2012, about 17 weeks (no intent to count exactly), all these have happened in plain sunshine.
(I apologize for using the word "market" since there isn't any. I'll take suggestions to replace that word until central planning recedes).
Something is about to happen. Not dead yet......not yet.
To 11/24/09 and beyond, I salute you. It's tough being scared when your parents are scared shitless, my young friends.
Ooooh. It feels like Nov 2011.....It feels like Nov 2011 when it was about to collapse and they came up with.........................ECB - Fed Swaps.
I have the same feeling.....................
US Coast Guard sinks Japanese vessel. Declaration of war emminent?
http://www.csmonitor.com/USA/Latest-News-Wires/2012/0405/US-Coast-Guard-...
Eat shit imminently, eminence!
i see clonie has linked up another nyt article...
i hate banksters
but not b/c of the fuking nyTimes
"I'm lying and there ain't a damn thing anybody's going to do about it. - "
-BM
JP Morgan has more control over the economy and markets than the Federal Reserve does.
JP Morgan is operating outside the law, the law is for commoners and slaves and stupid central bankers that still believe they matter....
Nothing Bernanke does can curtail JP Morgan, JP Morgan is outside his control....
JP Morgan is doing all this to laugh and spit in the face of the Federal Reserve a sort of "fuck off your worthless and you are no longer relevant"
JP Morgan controls the spice, whoever controls the flow of the spice, controls the universe..............
The Fed has lost its power........... JP morgan won the game of monopoly and everyone else is sitting around asking "wtf are we gona play now?"
are muppets
afraid of gold..
Wonder if I put Blythe's pussy on a fish hook I would catch a vampire squid?
TIME TO HER TO TAKE THE STAND
Im going to explain finance to all of you peasants (as I often do with little thanks I might add) who don't really seem to grasp the behavioral side. Upon registering offshore, I take some cash and park it at the Fed who then loans me significantly more money basically an exponential expansion. I rent some office space in manhattan and renovate the offices to resemble something Louis XIV would be able to relate to and feel comfortable pretending to be busy in while masturbating or ordering an expensive but average lunch/prostitute. In my comfy spread, I hire a bunch of yesman alpha male monkey dipshits with penchants for hookers, blow, generally expensive shit/suits some with PhDs from good schools and wealthy families (so they can ask their friends, politicians and family for advice and inside information). Next, I hire 3-5 gorgeous girls aged 25-29 (pereferably ex-models just old enough to not be out drinking and getting laid every night so they can still look good and answer the phone telling people I'm busy) admins to greet lowlife investors from middle east and europe. I then buy a shitload of computer monitors and instruct my minions to start making bets (long apple, long apple, apple calls, CDS, maybe some high yielding euro debt, etc.). After the machine starts rolling, i hire a Swedish design team who have an expansive command of fonts, graphic design, and overcharging (after all investors pay for the goddamn prospectus and reports whenever these jerkoffs get around to sending them) to explain what goes on at my fund/investment bank a very nebulous cum generic expository style without even a real meaning to parse (phrases like our outlook remains cautious, we are looking for the S&P to trade at 13 times earnings, we are looking for a strong quarter). Next comes commercials with an upper middle class white guy retiring and looking dignified with his aging counterpart by a yacht or motorcycle (never seen a fag or hispanic). If all goes well, I invite the CEOs right into my office and tell them I'm thinking of investing (I was buying drinks for my prime broker and he mentioned the company). The CEO keeps me apprised of all his machinations (outlook, earnings, etc.). After few quarters where my analysts go on tv talking about "research" and have the hosts slurp their nuts for making great calls (when I told them how that quarter and next quarter would be), I ingratiate myself to market makers by buying and selling tons of shares and racking up some comissions for them even buying them vacations/drugs/girls under the table. I basically pay their rent with some bullshit breakeven trades but when Facebook IPO time comes around they are sure to allocate me a ton of fucking shares which I buy and sell in nanoseconds realizing a windfall profit totally unavailable to the public. Before you know it, I am talking to Mandy and when the mic is turned off commenting on how good her australian pussy must smell after some binge drinking. That is finance.
...LMAO, post of the year. Should be made into an off Broadway video short Fight Club scene. Have a Norton and Pit look alike narrated scene of that whole picture you painted LD. Lol. http://www.youtube.com/watch?v=XycBLF6kWuY
And the ratio of psychopaths in the trade is what...80%? I mean, the whole thing is something only a borderline psychopath would even want to do, let alone be able to do.
Another interesting question--the attitude toward rules/authorities. Would it be better to have some that worked, or none at all and just let the thing crash and burn? Or is everyone too high and/or psychopathic to even ask that question?
That would make one fine book.
does Dr Doom attend your cocktail parties?
Which one's her?
http://goo.gl/ux2SF
"A JPMorgan Chase & Co. trader of derivatives...has amassed positions so large that he’s driving price moves in the multi-trillion dollar market" Another area JPM traders have amassed positions so large that they regularly drive DOWN price moves in a multi billion dollar market is the silver futures market. For example, they were likely the primary player that recently dumped 637MM ozs of fake paper silver ozs representing more than USD $19.7B of fake non-existent silver in the futures market in one hour to drive the price of silver down this past week. Or the many other times over the past year they've likely unloaded similar amounts of fake non-existent paper silver via HFT trading programs in very short periods of time to trigger stop-losses, black boxes and create waterfall declines in price. JPM is the primary dealer in fake financial derivative products, deceit, theft, immorality and everyone of the 7 Deadly Sins.
As Tyler points out, when someone sells something at 70% off and you just happen to want that something, you hum and haw, complain it has blemishes, the colour isn't quite right, when was it last tested? Can they deliver for free? Then you back up the pickup truck and take everything they have left.
HTH.
Based out of LONDON, ENGLAND, no wonder EUROPE is imploding. Good riddance to the EURO.
Is Ms. Masters English? Exposed.
Thank you, MR. Kim.
He s down around 400m on the trades.. And they were puking shorts, not new positions
Stop worrying, send in the committee
http://www.imackgroup.com/mathematics/619952-wall-treet-lucky-tar-hall-of-fame-times-committee-to-save-the-world/
I'm sure the positions are hedged, so JPM will be OK ... What's the big deal?
Nuke the TBTFs from orbit- limit assets size to 500B GLOBALLY-PROHIBIT POLITICAL CONTRIBUTIONS- its the only way to be sure....
The greatest private fraud of human history.
Who are the great fraudsters who are becoming the murderers of the human kind? How does the economy "illness" threaten Democracy and the freedom of people?
http://eamb-ydrohoos.blogspot.com/2012/01/global-debt-crisis.html
---------------------------------
By knowing what happened in indebted Greece, where loan sharks created “bubbles” and the current inhuman debt, one can understand the inhuman plan in total ...understand where this plan started just to bring all states at the same end ...understand how this type of plans are established...
Authored by PANAGIOTIS TRAIANOU
No, no. He's just "hedging."
their end getting near
And let us not forget the REAL shenanigans with MFGobal courtesy of Rockefeller's "Morgue" laid out in unadultered clarity here:
http://www.myspace.com/tom_heneghan_intel/blog.
The message, of course, is that "we do whatever we want. We own everything." And this is the problem, that as a culture we've allowed the inheritance of fortunes so vast that they dwarf the resources of nations, and in fact are used to bankrupt nations, produce vaccines that are poison, develop subliminal and electronic mind-numbing capabilities, spray the air with chemtrails laced with nano elements, and develop micro nuclear devices like those used to fell the WTC on nineeleven. The Rockefellers are like unto gods, and surely they view themsrlves as such - just look at the behavior I just mentioned.
The cure is simple. We take it from them. We no longer allow the transfer or inheritance of accumulated wealth. This ends the continuation of a cabal. But it will probably not be easy to wrest anything from people who own the whole system. It would be something like the NRA member's slogan "...from my cold,dead hands."
Amen.