This page has been archived and commenting is disabled.

Is The Pain Over For Bruno Iksil?

Tyler Durden's picture




 

Today, for the first time since the advent of the JPM prop trading fiasco last Thursday, the IG9-10 Year skew has diverged, dipping from -3 bps to -5 bps as the index remained flattish while the intrinsics widened by about 2 bps. While hardly earthshattering, this move likely means that either JPM's CIO trading desk is playing possum and is no longer unwinding its original pair trade exposure (either because it no longer has anything to unwind, or because it can't take the pain any more and is out of the market entirely), or the hedge fund consortium has had enough of pushing IG 9 wider in hopes that max pain would force JPM to cover its synthetic leg. As a reminder, this is where last Thursday we said the time to push JPM would likely end. As for the question of how much additional P&L loss JPM has sustained from Friday through today is a different matter entirely, and we are confident the next announcement from JPM will come momentarily, coupled with the announcement that Bruno Iksil, the last remnant of the CIO desk, and now having completed his duty of unwinding the trade that brought so much pain for Jamie Dimon, has been retired.

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Tue, 05/15/2012 - 22:04 | 2429974 LetThemEatRand
LetThemEatRand's picture

And he gets to keep his ill-gotten gains and resign.  Why are people angry at Wall Street?

Tue, 05/15/2012 - 22:08 | 2429999 Concentrated po...
Concentrated power has always been the enemy of liberty.'s picture

Kill the pig, eat his flesh, bash him in! - Lord of the Flies

Wed, 05/16/2012 - 04:38 | 2430647 Aziz
Aziz's picture

Given that they fired everyone around him except for him, I don't think the trade is anywhere near closed. They're giving him a chance, I think, to limit the loss. Maybe that's why they brought in ex-LTCMer Matt Zames — get Iksil some help from someone who has been there before. I'd just take the $2 (+) billion loss and use the ZIRP to claw my way back in other markets (I mean for fucks sake how hard can it be borrowing at 0% and then lending at 5%??) but maybe they think their Martingale game is winnable with enough capital behind it? Way to turn a $2 billion loss into $20 billion.

Tue, 05/15/2012 - 23:00 | 2430145 SilverDoctors
SilverDoctors's picture

If Iksil's pain is over, Blythe's seems to be just beginning.  Jim Comiskey's London source states that JP Morgan received a massive margin call this morning, and dumped 13,000 July silver futures contracts in London, out of a total of 37,616 July contracts traded on the day.  Talk about massive pain!

http://www.silverdoctors.com/jim-comiskey-jp-morgan-sold-13000-july-silv...

Wed, 05/16/2012 - 00:40 | 2430398 PersonalRespons...
PersonalResponsibility's picture

When money doesn't really mean anything to you, is there pain?

Wed, 05/16/2012 - 02:46 | 2430551 Nobody For President
Nobody For President's picture

It ain't the money, honey - money's just a way to keep score.

And when you lose, you lose face, ego all that immortality shit that has defined their lives for so long - so they lose sumthin' - maybe then they find out it wasn't so damn important after all. Or maybe not. 

Certainly, none of them will have to perp walk, much less do time. But they probably won't be invited to the important parties, poor babies.

Wed, 05/16/2012 - 08:04 | 2430878 philipat
philipat's picture

Remember, Bruno knows a lot. If Jamie wants to perpetuate the "Just hedging" public facade, he needs to be nice to Bruno?!

Tue, 05/15/2012 - 22:08 | 2429993 lsbumblebee
lsbumblebee's picture

Let's put Bruno's face in a meat grinder and find out.

"Soros Fund Management picked up a new stake in J.P. Morgan Chase in the first quarter, sold out of Google and nearly quadrupled exposure to the SPDR Gold Trust, a quarterly portfolio disclosure this evening shows."

http://blogs.barrons.com/focusonfunds/2012/05/15/soros-1q-filing-ramped-...

 


Tue, 05/15/2012 - 22:56 | 2430113 CCanuck
CCanuck's picture

Nice link, Is the SPDR/GLD fund run by JP & HSBC ?? Makes his position a paper position?

Good for Soros, if its the paper type gold.

Tue, 05/15/2012 - 23:15 | 2430206 lsbumblebee
lsbumblebee's picture

Yes JPM and HSBC are involved. I don't invest in gold ETF's since counterfeit money is illegal, but SPDR is the most popular paper gold fractional reserve gold fiat gold printing paper system that's not backed by gold. Soros is betting his paper gold that the paper gold market will go up.

Wed, 05/16/2012 - 00:36 | 2430388 CCanuck
CCanuck's picture

Thanks.

Tue, 05/15/2012 - 22:16 | 2429995 sunaJ
sunaJ's picture

Iksil hasn't even begun to feel any pain yet. 

Tue, 05/15/2012 - 22:18 | 2430025 TheFourthStooge-ing
TheFourthStooge-ing's picture

He's been told that he "wants to spend more time with his family".

 

Tue, 05/15/2012 - 22:50 | 2430095 Dead Canary
Dead Canary's picture

And do volunteer work with disadvantaged children.

Wed, 05/16/2012 - 05:13 | 2430674 malikai
malikai's picture

Lame. He should be awarded the Nobel in economics and given a professorship at Princeton. It's the only right thing to do.

Tue, 05/15/2012 - 22:11 | 2430006 Dingleberry
Dingleberry's picture

"Bruno was only doing God's Work!"

"To hell with all you heathenz!"

-Lloyd Blankfein

Tue, 05/15/2012 - 22:13 | 2430007 Caviar Emptor
Caviar Emptor's picture

When there were no more "great ventures" left to bet on in this haggard economy, they made bets on ...other bets. 

And that was the day the music died for Old Wall Street 

Tue, 05/15/2012 - 22:41 | 2430069 infinity8
infinity8's picture

Well put.

Tue, 05/15/2012 - 23:09 | 2430183 Catflappo
Catflappo's picture

Opposite of a Well call?

Tue, 05/15/2012 - 23:09 | 2430181 macholatte
macholatte's picture

 

Yes, they made BETS. They didn't "invest", they gambled..... with YOUR money.

But the music plays on. It's a dirge at a funeral. TPTB are the casket bearers and the body in the coffin is the Spirit of America.

Wed, 05/16/2012 - 00:43 | 2430400 beaker
beaker's picture

Right.  Nothing of value to society. No product. No wealth was produced from labor and capital.  Just a bunch of fucking vaporware. Bastards just picking each other's pockets in the grandest circle jerk of all. 

And of course, funded by us taxpayers and sanctioned by the people this society elected.

Tue, 05/15/2012 - 22:14 | 2430011 Yen Cross
Yen Cross's picture

Bruno! Why doesn't anyone mention his name? 

  Bruno ( JP Morgan) London derivitives, buzz kill!

Wed, 05/16/2012 - 00:38 | 2430392 General Debility
General Debility's picture

"Bruno Whaled Iksel?" WB7 haha

Tue, 05/15/2012 - 22:19 | 2430020 midgetrannyporn
midgetrannyporn's picture

I have no sympathy for the hedge funds if they get nicked for playing in JPM's kitty box. The only way to win is not to play.

Tue, 05/15/2012 - 22:19 | 2430021 The trend is yo...
The trend is your friend's picture

Bruno can finally get his job at the treasury.  Now he qualifies.

Tue, 05/15/2012 - 22:20 | 2430027 Yen Cross
Yen Cross's picture

Asia has been selling usd for 3 weeks!  China has been solid on usd treasuries.  Based on last weeks auction results.

  Asia is commodity driven.

Tue, 05/15/2012 - 22:27 | 2430047 dannyboy
dannyboy's picture

Noticed that too.. Chinese can't sell their over 1T of US T-Bills without people noticing though..

Tue, 05/15/2012 - 22:50 | 2430102 Yen Cross
Yen Cross's picture

Emerging markets " Danny Boy". China dependant economies!

Tue, 05/15/2012 - 22:23 | 2430037 Dr. Engali
Dr. Engali's picture

Bruno has been short changing himself. Now he can open his own hedge fund and charge 2 and 20 for these results.

Tue, 05/15/2012 - 22:26 | 2430038 barliman
barliman's picture

 

I don't think Bruno will be allowed to resign ...

... unless he makes a substantial restitution to JPM out of his own pocket.

Jamie Dimon would rather eat his children than part with money. And he is very fond of his children!

Has anyone seen Bruno Iksil lately?

barliman

Wed, 05/16/2012 - 01:40 | 2430470 eatthebanksters
eatthebanksters's picture

Bruno is wonderng how he can get a refund on that pricey bottle of champagne...

Tue, 05/15/2012 - 22:30 | 2430050 postafoa02
postafoa02's picture

i'm still in the asylum. in 32 minutes from now i will be allowed my first cigarrette. approx 90 minutes later i will be allowed my first cup of coffee.

 

yours, nemesis nomos

Tue, 05/15/2012 - 22:55 | 2430122 YesWeKahn
YesWeKahn's picture

Bruno Iksil, nicknamed the London Whale[1] (for his risky trades[2]) and Voldemort (for his supposed power on Wall Street)[2] is a French-born trader for the London office of JPMorgan Chase[2] who is held responsible for a $2 billion loss.[3] Reportedly he began working for JPMorgan in 2005 and lives in Paris, commuting to the City.[3] A private man, no photographs of him are said to exist.[4] Iksil was so powerful and so bullish in early 2012[5] that his trades alone moved the index, according to New York magazine.[3] After "the disastrous $2 billion trading loss related to derivatives in the bank's chief investment office in London" became known in May 2012, he was "stripped of his trading responsibilities."[6][7]

Tue, 05/15/2012 - 23:56 | 2430326 bingo was his name
bingo was his name's picture

Can anyone confirm this is a real person?  Would JPM go so far as to develop a straw man to take the blame for a yet to be developed issue?

Wed, 05/16/2012 - 07:00 | 2430744 j0nx
j0nx's picture

He's called Voldemort? Seriously? These fuckers have too much time on their hands to think about thieving. Blows my mind that 4 years later the people are still putting up with these wolves.

Tue, 05/15/2012 - 22:55 | 2430123 IMA5U
IMA5U's picture

if jpm's damage is done it accomplished what da bears needed

vol in cds

all da bearz need now is more volatility in europe and this market will crash

 

obi ben bernake...qe is our only hope....

Tue, 05/15/2012 - 22:59 | 2430136 Some Bloke
Some Bloke's picture

This just shows the folly of employing someone with a name like Bruno.  My first name is Some, and I could lose that sort of money while being paid a lot less than a 'Bruno'.

Tue, 05/15/2012 - 23:09 | 2430180 mendigo
mendigo's picture

This guy had/has fall-guy written on his forehead.
Would one person have been entrusted to carry-out such an operation.
Did he have the credentials to be entrusted with this?

Tue, 05/15/2012 - 23:12 | 2430188 Catflappo
Catflappo's picture

I expect soon we'll be told he "used to work in the back office and so he knows the systems really well and this was how he managed to avoid detection for so long".  

Tue, 05/15/2012 - 23:12 | 2430190 Tom Green Swedish
Tom Green Swedish's picture

The more I watch the financial industry the more I think its like some kind of entertainment.  Its like who can make the biggest loses and look like the biggest fool is the biggest celebrity.  Its like a reality show but really stupid.

 

Time for the gloom doom and boom report by Marc Faber:

 

http://www.youtube.com/watch?v=e59rh3EV4gk

Tue, 05/15/2012 - 23:14 | 2430196 Money Squid
Money Squid's picture

I think the headline should read "Is Bruno Iksil New Howie Hubler?"

I wonder if Burno will surpass the famous Howie, king of MBS

Tue, 05/15/2012 - 23:15 | 2430208 Yen Cross
Yen Cross's picture

 I'm boycottiing " CNBS". Bruno sunk the ship! Bring Bruno on ya ass hats!

Tue, 05/15/2012 - 23:21 | 2430225 junkyardjack
junkyardjack's picture

They will announce they made $4bn riding the wave up...

Wed, 05/16/2012 - 00:02 | 2430333 AldoHux_IV
AldoHux_IV's picture

It's the damage from counterparty risk and the vaporizing [re]hypothecated assets that JPM should fear when the Euro crashes either from doing the right thing (breaking up the monetary union) or from the failed attempts of perpetuating a consumer financed failed system.

Wed, 05/16/2012 - 00:07 | 2430339 silverdragon
silverdragon's picture

Thanks Bruno for doing to JPM what they have been doing to my Silver. I hope you have more suprises for us, you have cost them 20 billion so far. Keep up the good work. I do hope you can cost them another ten to twenty billion.

Wed, 05/16/2012 - 00:49 | 2430407 silverdragon
silverdragon's picture

Come on little Bruno, you can do it, take JPM for 50 Billion.

Make our day.

Don't listen to all the haters, don't leave yet, you have unfinished work.

 

Wed, 05/16/2012 - 02:37 | 2430540 cnhedge
cnhedge's picture

Greece: when the lights go out
http://www.cnhedge.com/thread-4650-1-1.html
US Daily: 2012 April FOMC Minutes Preview
http://www.cnhedge.com/thread-4528-1-1.html

Wed, 05/16/2012 - 02:55 | 2430566 Nobody For President
Nobody For President's picture

Sometimes I wonder whether the world is being run by smart people who are putting us on, 

or by imbeciles who relly mean it.

Mark Twain to Jamie D

Do NOT follow this link or you will be banned from the site!