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Putting It Into Perspective: Bruno Iksil's $100 Billion Position Makes Him The Seventh Largest Bank Holding Company By CDS Exposure
With the story of Bruno Iksil refusing to be swept under the rug (for now), we had the urge to show just how his position stacks up in comparison to the CDS holdings for all the bank holding companies tracked by the Office of the Currency Comptroller. Recall: "Iksil may have built a position totaling as much as $100 billion in contracts in one index, according to the market participants, who said they based their estimates on the trades and price movements they witnessed as well as their understanding of the size and structure of the markets." We used a log scale index although even in simple linear terms the story is quite straightforward: we are not sure what is worse - that one trader may have amassed a CDS position (with an associated VaR that is in the billions) which is greater than the combined holdings of all except for 6 banks (and is greater than the combined CDS exposure of a Wells Fargo among others), or that the top 5 banks together account for 96.5% of all CDS holdings? One thing we are certain of, is that JPMorgan's $71 trillion in assorted derivatives is all purely for hedging purposes. After all Dick Bove just said so.
Source: OCC
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When Blythe said, "no" or "none," she meant, well, a lot.
New preview from Nassim Taleb (on this meta-topic, the problem of taking the upside without risking the downside):
http://www.fooledbyrandomness.com/prologue.pdf
I'm sure the regulators are on it.
:? sarc
"What the ever loving hell is a "CDS""?!? - The SEC
Someone needs to let her know that we "are not" constructing a guillotine, or several of them.
...indeedy, we are not amused
we want the truth, the whole truth and nothing but the full multi-$Trillion Dollar balls-up that JP Morgan is in ...ha
@seiZe_m_r_s: When Blythe said, "no" or "none," she meant, well, a lot.
apparently, she pulls this on everybody!
i think she's hot b/c she's a nympho, a sizeQueen, and a switch-hitter
plus, she has a grrreat little ass!
She was a dude... The aforementioned guillotine chopped the dick off (but it grew back)...
weren't you here the night she showed up and got gang-banged?
she was a true sport, even as the asians gave her facials
and that grrreat equestian ass, too
if she gets too far into that goody-goody side, she may re-emerge here, just for psychological needs...
what a dreamer!
hawt!!!
http://www.silverbearcafe.com/private/03.11/images/blythe-masters.jpg
https://lh6.googleusercontent.com/_rnN3mbqgIJ0/TSWtsugixOI/AAAAAAAACYo/k...
http://upload.wikimedia.org/wikipedia/commons/2/26/Blythe_Masters.jpg
Stock up on popcorn. When this thing blows, it will be interesting to watch.
Sounds like JPM needs to invent the Bruno Iksil Mutual Fund so we can all get in on this action.
They probably already have an under-the-counter Iskil CDS.
We need Iskil ETF's complete 3X Bull and Bear Iskils.
Then we need an Iskil Volatility synthetic.
Hell, since everything's all Vegas anymore make it just like craps with a 10X Iskil.
Come on now, somebody step up to the plate!
JP Morgan is "winning"
They have the longest pole thingy.
"They have the longest pole thingy"
[Insert Santorum joke here]
please define who this individual is in the world you and I inhabit, and what it means beyond the good comments of your overview.
and his residential address
Where's my invite to his Liverpool nightclub "champagne room"?
Evidence impounding.
Seriously, just sell the derivative portfolio, and then with the cash proceeds, buy lots of plywood...and nail the front door of EVERY JP Morgue house shut. And then the rest of us can finally get on with some real economic recovery.
JPM is part of the inner core of the circle jerk. The Fed will never allow them to fail. JPM will stay in business until the hyperinflation event.
"JPM will stay in business until the hyperinflation event"
Precisely. Remember, JPM is the Fed and has a play on all sides of this. They even "deliver" foodstamps. Be a shame if that entitlement suddenly got turned off now, wouldn't it?
JPM even delivers unemployment benefits in Texas. God bless the Man. (More like fuck him!)
Bruno Iksil with such a high level of CDS exposure?! Sounds like the setup for a rogue trader scandal at House of Morgan....
He's got the name of a scapegoat.
yeah but he makes Wells Fargo look like pikers...
Takes the pressure off Corzine.
Bove might as well put on a cheerleader outfit and grab some pom-poms and chant "We've got spirit yes we do, buy bank stocks and they'll screw you! Gooooooooooooooooooooo BANKS!"
Dick Bove is a fucking idiot.
The propaganda machine is scraping the bottom of the barrel.
Seige of Staligrad, anyone?
we're not scraping the bottom, Bove is always first crone up
...the bottom is when they wheel out Jim Cramer
Wapner, Bartiromo, Kudlow and Liesman have as good a command of the financial world as does a dog's dried ejaculate.
Disgustingly true...
It's 4 o'clock on Wall St. Do you know where your doggy is?
Click. Boom
Don't you think that there are more Bruno's around with GS, Citi, BoA, DB, CS, UBS et al. They all want to be masters of the universe and make the world going round, or better, polish up their pa. Did markets take that into consideration?
Jubilee bitchez. Tyler, could we see a chart with the very same players and their PM holdings? Pretty please.
Basically the message I get from this chart is "JPM has the most nukes". Whether or not they use them is another issue altogether, but predictable if history is any guide.
PM holdings?
Here are the only PM's these ones are 'holding'...
http://www.hamovhotov.com/picturegallery/?id=155&level=picture
Not true. JPM has PMs, many of them have been recently "re-hypothicated" from MF-Global. It was JP Morgan after all who said, "Gold is Money, everything else is credit".
Sometimes the answer hides in plain sight.
I'm not talking about the private vaults of it's PREFERRED fellows... I'm talking about what it admits to the public...
But we're talking semantics here...
"One thing we are certain of, is that JPMorgan's $71 trillion in assorted derivatives is all purely for hedging purposes. After all Dick Bove just said so..."
I'm pretty sure that grandpa Dick & grandpa Bernank spend countless hours 'hedging' each others chin fur... Krugman & Gartman are their understudies on 'certain' holidays...
So is this another fool and his money part story of this decade? Who would ever pay paper for paper is beyond me.
in paperPonZee as it is now broadcast, at least 6Bil are completely hypno, imo
ergo, it is the promise of future paper which motivates them
noShitoli, m_i_boyardee
others play for future "assets" now backed by paper in the IOUskie "markets" [but possibly worth "sovereign" wealth at some future point in this is fiatsco? how do you "mark" yer markerZ?]
and, since they all "agree"?: canoes are sinking faster than bonds... in spite of how insane it is to buy PMs, the banksters will buy all you'd ever want to sell, all day, everyday...
so, just get ready to sell & go away, next month...
what could possibly go wrong?
btw, once your conoe sinks, do you still care? me neither
So ONE guy can gamble with 100B while mom & pop small businesses can't get loans.
America is fundamentally broken when Industrial icons like Howard Hughes are replaced by financial boy wunderkinds.
What's broken is that because one guy can gamble with $100bn, mom & pop have to take out loans to run the business. Whether they get them or not is a different story.
at least he wasn't drunk from golf like that brit who blew out the oil market a coupla years ago... jeeeez! that was funny!
i usta play extremeToxicGolf and once came home, somehow, from aforemntioned idiocy, put a pizza in the oven @ 450F and went to bed
the next morning i had a little, dark, ceramic disc
if anybody has any money, we could patent the process and start a company to mummify poeple after the goobermint votes them out
or radiation victims~..~energy-saving, btw
if they had lottsa tats or ?, we could display them...
plus, think of the soap!
No. One guy can buy contracts that amount to a notional value at risk (i.e. an imaginary valuation, at best) of $100B.
This pissant is still spit in the ocean (1/568th of the JP Morgan tower of derivative shit) until he gets past counter-party risk and actually collects a dime.
And Hughes ended up nuts pissing in bottles so he didn't have to leave the house; choose wisely.
Thar she blows!
Very cool: set up one guy to take the fall for all of Europe.
Pure genious but I fear Tyler has spoiled the surprise.
leave it to theMorgue to supply the dude to end the EU?
ok...
I have a hard time believing this is just one guy and not a handle for the big 6 to play see-saw on the market with and make $ off the top based on the swings.
I mean: It might look like 1 persons name, but it's probably a consortium under this guise.
Also, I don't doubt JPM has a huge CDS prop position, but is this really the new standard of evidence?
... may have built... according to the market participants... who based their estimates on the trades they witnessed... as well as their understanding...
Hansel, you've been keeping score on these pages longer than I have... I'm not really sure that any institution that has TBTF status deserves ANY benefit of the doubt...
At least the position is less than the annual GDP of Morocco.
That's the power of positive thinking!
dont worry guys, it is a small position "net of hedges" haha
This shows just how much of a rancid casino capital markets have become. A sickening show of JP Morgan's implied Federal reserve backing.
JPM is the fucking Fed.
When you have 71 trillion in paper...you have no regulation...you are the man....no one well ever say shit...ever
Hahahaha.
Punk.
No doubt this qualifies him for a personal exemption from position limits by the CFTC and a personal exemption from the Fed for commercial bank risk management practices. They're probably working on the letters right now. Next thing you know Fannie Mae will be giving him a $10 billion mortgage loan commitment at the Fed overnight funds rate so he can buy Buckingham palace and convert it to his private residence.
Why do his competitors let him live?
If Bruno is right, JPM scores big. If Bruno is wrong, JPM gets bailed out. If I were Bruno, I would take that bet too.
Why does any bank have a need to sell protection as a "hedge". Are they not long enough credit risk? Do they need to get longer? Very fishy.
CNBC is like the WWE. It's Financial entertainment TV.
"Our analysts are trained professionals. You should never try to emulate what they do in your own portfolio."
What is wealth? When will Bruno have the time to enjoy a thorough analysis Joyce's Dubliners or Nietzsche's Zarathustra?
Ok. Maybe racing fighter jets or a trip to outer space has that beat.
Anyhow Bruno ain't going to get nothing but a freakin headache trying to collect on all those CDSes.
Bruno Iksil, meet Joe Cassano.
Joe, Bruno, meet Mr. Hollowpoint.
the S will eventually HTF
as it always does...
dot com,
bubble house
tulips
nasdaq
and now they are buying apples or any..things in manic mode as if they were the best thing since... tulips or houses or .......dots.....com
Jamie's Porking Masters
Jerkoff's Pumping Manure
We need more info. What side of the bet has he taken? Or are these the total gross position "netting out" to a much smaller amount in theory with JP taking a cut in the middle (we've seen before how that movie ends)? If he has underwritten CDSs for that notional, it may be time to short JP stock. The next five years will test the CDS market to DESTRUCTION.
JPM may not survive the next five without an explicit bail-out if they have a $5.6 Trillion CDS exposure. Oh boy................this is going to get very interesting
I feel a great disturbance in the Farce.
Bove is an idiot but Bruno probably has a small fraction of the alleged risk
As long as no counterparties cough, AIG, cough, default and allow cough, the squid, cough, to shake down the taxpayers then...
JPM execs will get bonuses no matter what happens, that's my prediction.
"And I, Bruno, will drive 1000 feet into a block of cement....on my head even!"
http://www.youtube.com/watch?v=woH0Nhbc-fc
To state the obvious: NONE OF THE F'N INTERNATIONAL CRIMINAL BRANK COULD EVER CLAIM A PROFIT IF THEY DID NOT ALSO CLAIM THAT THEIR RISK DID NOT EXIST ... due to hedging.
The global financial system is so far past rationality that no one dare acknowledge the emperor is bare naked and has a massive pustulent wart on his ass.
The greatest trick the devil ever pulled was convincing the world he didnt exist.
The thing that troubles me most is the fact that he's French. I hope he has at least one Rosbeef assistant:)
and to think.... this was the post that started it all. popcorn indeed.