This page has been archived and commenting is disabled.
The "World's Largest Prop Trading Desk" Just Went Bust
A month ago we warned that JPM's CIO office is nothing short of the world's largest prop trading desk. Not only were we right, but what just transpired is just shy of our worst possible prediction. At the end of the day, the real question is why did JPM put in so much money at risk in a prop trade because we can dispense with the bullshit that his was a hedge, right? Simple: because it knew with 100% certainty that if things turn out very, very badly, that the taxpayer, via the Fed, would come to its rescue. Luckily, things turned out only 80% bad. Although it is not over yet: if credit spreads soar, assuming at $200 million DV01, and a 100 bps move, JPM could suffer a $20 billion loss when all is said and done. But hey: at least "net" is not "gross" and we know, just know, that the SEC will get involved and make sure something like this never happens again.
As for what we said before, we will just repost the whole thing as we were, once again, right.
From April13: Why JPM's "Chief Investment Office" Is The World's Largest Prop Trading Desk: Fact And Fiction
For the fiction, we go to JPM's conference call transcript where we had the following disclosures.
- "I did want to talk about the topics in the news around CIO and just take a step back and remind our investors about that activity and performance. We have more liabilities, $1.1 trillion of deposits than we have loans, approximately $720 billion. And we take that differential and we invest it, and that portfolio today is approximately $360 billion. We invest those dollars in high grade, low-risk securities. We have got about $175 billion worth of mortgage securities, we have got government agency securities, high-grade credit and covered bonds, securitized products, municipals, marketable CDs. The vast majority of those are government or government-backed and very high grade in nature. We invest those in order to hedge the interest rate risk of the firm as a function of that liability and asset mismatch."
- "We hedge basis risk, we hedge convexity risk, foreign exchange risk is managed through CIO, and MSR risk. We also do it to generate NII, which we do with that portfolio. The result of all of that is we also need to manage the stress loss associated with that portfolio, and so we have put on positions to manage for a significant stress event in Credit. We have had that position on for many years and the activities that have been reported in the paper are basically part of managing that stress loss position, which we moderate and change over time depending upon our views as to what the risks are for stress loss from credit. And I would add that all those positions are fully transparent to the regulators. They review them, have access to them at any point in time, get the information on those positions on a regular and recurring basis as part of our normalized reporting. All of those positions are put on pursuant to the risk management at the firm-wide level. They are done to keep the Company effectively balanced from a risk standpoint.... " Of course, when you own the regulators, it is not much of an issue... And would it be the same regulators who we have now confirmed don't understand the first thing about markets?
- "All of those decisions are made on a very long-term basis." Indeed - and the Norway sovereign wealth fund bought Greek bonds investing in "eternity." Only problem is eternity came far faster than expected."
- "The last comment that I would make is that based on, we believe, the spirit of the legislation as well as our reading of the legislation and consistent with this long-term investment philosophy we have in CIO we believe all of this is consistent with what we believe the ultimate outcome will be related to Volcker."
For the facts, we go to Bloomberg again, which was the first to break the Bruno Iksil story, and which exposes without shadow of a doubt why the Chief Investment Office is nothing but the world's largest prop desk. But hey, just as Goldman named it frontrunning service the "Asmymetric Service Initiative" thereby magically not making it a frontrunning service, naming the world's largest prop desk the "Chief Investment Office" makes it no longer be the world's largest prop desk.
Here are the highlights. First on the CIO group:
- Achilles Macris, hired in 2006 as the CIO’s top executive in London, led an expansion into corporate and mortgage-debt investments with a mandate to generate profits for the New York- based bank, three of the former employees said.
- Some of Macris’s bets are now so large that JPMorgan probably can’t unwind them without losing money or roiling financial markets, the former executives said, based on knowledge gleaned from people inside the bank and dealers at other firms.
- The CIO’s growing size and market power have made it an increasingly important customer to Wall Street’s trading desks and a market influence watched by hedge funds and other investors, the former employees said. Iksil’s positions in credit-derivatives have become so large that some market participants dubbed him “Voldemort,” after the villain of the Harry Potter series who’s so powerful he can’t be called by name.
- “What Bernanke is to the Treasury market, Iksil is to the derivatives market,” Bonnie Baha, head of the global developed credit group at DoubleLine Capital LP in Los Angeles, where she helps oversee $32 billion, said in a telephone interview.
- Macris’s team amassed a portfolio of as much as $200 billion, booking a profit of $5 billion in 2010 alone -- equal to more than a quarter of JPMorgan’s net income that year, one former senior executive said.
And far more importantly on the background of the guy behind it all. It kinda, sorta sounds like he is a... gasp.... prop trading kinda guy
- It’s Macris, not Iksil, who was behind the strategy that led to an unprecedented build-up of credit risk in JPMorgan’s chief investment office, three former employees of the bank said. While they expressed doubt Iksil can unwind his positions without causing a dislocation in the markets he trades, they also said JPMorgan probably can afford to hold the assets until they mature and so won’t be forced to sell them.
- In 2011, corporate revenue of $3.3 billion included $1.6 billion of securities gains and produced $411 million of net income, the bank said in an annual filing on Feb. 29. By comparison, JPMorgan’s investment bank reported $26.3 billion in revenue and $6.8 billion of net income in 2011.
- Since 2007, the value of securities held in JPMorgan’s chief investment office and treasury has more than tripled to surpass $350 billion from $76.5 billion, according to company filings.
- Profit, not risk management, guided the purchases, according to the former employees. One of the employees, who previously held a senior executive position at the bank, said Dimon even ordered some of the trades himself.
- Dimon pushed the unit to seek bigger profits by buying higher-yielding assets, including structured credit, equities and derivatives, and ramping up speculation, according to two former employees.
- In London, Macris expanded his team, adding expertise in credit and fixed-income trading. A Greek citizen, Macris previously was co-head of capital markets at Dresdner Kleinwort Wasserstein before joining JPMorgan in 2006. In that role he helped oversee a unit that made proprietary trades, or bets with Dresdner’s own money, according to two people who worked with him at the time.
- Before joining Dresdner, Macris oversaw currency trading at Bankers Trust, now part of Deutsche Bank AG. Macris was an idea- generating machine who was blunt and didn’t suffer fools, said Duncan Hennes, who worked with him at Bankers Trust.
- At JPMorgan, Macris hired Evan Kalimtgis, a former head of credit portfolio strategy at Dresdner, to help with risk management, according to one former employee.
- In 2007 Javier Martin-Artajo, who had been Dresdner’s head of credit-derivatives trading, joined JPMorgan in London. George Polychronopoulos, who worked at hedge fund Endeavour Capital LLP, also joined the London office in 2009.
- Martin-Artajo, Polychronopoulos and Kalimtgis didn’t return calls and e-mails seeking comment.
- While Macris had a mandate to make money from the beginning, he didn’t start putting on big bets until after the credit crisis in 2008. Two of the former executives said the following year he bought AAA-rated pieces of collateralized debt obligations. As competitors dumped securities and prices slumped, Macris’s group at JPMorgan emerged as the biggest buyer in some markets, said one former executive at the bank who was familiar with the trades at the times.
- In one example, a New York-based CIO trader named Jonathan Horowitz bought about $1.1 billion of AAA-rated portions of collateralized loan obligations for about 80 cents on the dollar in November and December 2008, people familiar with the matter said at the time. Horowitz declined to comment.
Finally, the most damning evidence that JPM's World's Biggest Prop DeskTM, elsewhere known as the CIO, has to be dismantled lest it suffer the fate of all other massive prop desks, which promptly blew up in the days after the Lehman failure, is the following:
- One public sign that the chief investment office does more than hedge: Its trading risk is on par with that of JPMorgan’s investment bank.
- JPMorgan’s annual report for 2011 shows that the CIO stood to lose as much as $57 million on most days of the year. That compares with $58 million for the investment bank, which includes Wall Street’s biggest stock- and bond-trading units.
- Another sign: The relationship between the CIO and the investment bank’s sales and trading desks is strained, two former employees said. Employees in the CIO get a smaller share of their trading profits than those in the investment bank, giving Dimon a cost-management incentive to direct more trading through the CIO, one former executive said.
Hence: JPMs "Chief Investment Office" = World's largest prop trading desk. But hey, just repeat "Assymetric Service Initative" ... "Assymetric Service Initative" ... "Assymetric Service Initative" three times ... and it becomes truth.
- 63649 reads
- Printer-friendly version
- Send to friend
- advertisements -


Heh.
Some of Macris’s bets are now so large that JPMorgan probably can’t unwind them without losing money or roiling financial markets, the former executives said...
That's what the fed is there for, to socialize &/or hide the losses.
Macris is Greek so he has to be great at finance.
In fairness, Jamie Dimon is Greek too, so Macris is at all times properly supervised by someone really, really great at finance.
Macris, a Greek citizen
You can't make this shit up can you...
... is Bankrupt a greek word... just wondering...
This is kinda like when the Bear Stearns hedge fund went down in 2007.
2008...
Die, JPM, Die!!!!
Although it may be too early to start singing "Ding Dong The Witch Is Dead" I see no reason why I shouldn't tune up my guitar tonight...I've often fantasized about serenading Blythe with it on the day she eventually finds herself unemployed
German for "The JPM, the" <sideshowbob />
Prop goes the weasel.
So now we'll find out exactly how much silver and gold JPM has, as it comes crashing onto the market, and the term 'Corzined' is replaced by '"Daimon'd" and/or "Master'd". Or maybe 4 - 20 billion isn't a big deal?
'and to all the buy side sell side analysts, well sorry I couldnt tell you about this 3 days ago when we met'.
Jamie's going in the river for sure
Corzine arranged it all...payback!
Corzine was part of it. The Oli North as you will
max...
Eventually, but he can buy a bit more time by doing a Corzine...lying low, never seen in public. No honour among thieves. Probably partly explains why the New York Police Federation received its biggest ever donation from....JP Morgan. Nothing like paying for a little more protection when your 'friends' hate you...so calculates JP Morgue.
And what did dear sweet Ben say just this morning. I quote.....
THE FED Archives | Email alerts
May 10, 2012, 9:42 a.m. EDT
Banks are healing, Bernanke sayHave they at JPM heard about VAR (Value At Risk) concept? Or is it Wild West and Jim Diamond scenario?
http://www.youtube.com/watch?v=Tzwl5dkHoIk
"Ben, I need a handout-NOW!"
CNBC- Jamie Dimon is such a genius
Jamie, the money you stole from from us at MFG is now gone-times 20 maybe!
hahahahahaha
This wont affect my SNAP card will it?
And it's gone.
hmmm. interesting. i was there earlier this week seeking employment. in 10 minutes i sat with 3 arseholes. May each of them find solace in donkey d***
Ooh ooh! On a THURSDAY!?!? Fuckin' SWEET!
These scum need to go to prison.
Jamie Dimon CEO of JP Morgan Chase Threatens Life of Jon Corzine of MF Globalhttp://jhaines6.wordpress.com/2012/03/26/jon-corzine-threatened-with-dea...
Basically give us your money from segregated accounts or die...
MF’s Corzine Ordered Funds Moved to JP Morgan, Memo Sayshttp://www.bloomberg.com/news/2012-03-23/mf-global-s-corzine-ordered-fun...
Dimon is a fucking mob boss.
lol...
That's why I call them gangsta bankstas ;-)
When does JP Morgan BEG for public, non-private, TAX dollars? Or dump their very private losses onto the public?
the winning end of the losing trades might be found in the Personal Accounts, not the Corp accounts
think Corzine for example...who had the Winning Side of that Investment "Bet" that a dummy wouldn't have made
what's more important for krooks, personal profit or corporate profit
Please Dr. Bernanke... no more QE!!!
Bernanke, the mother fucker, encouraged too big to fail. He should go to jail first.
I would be withdrawing my physical from JPM vaults about now.
To late, it's long gone.
Hypothecated straight into hell.
But all the SLV bullion is there . . . right?
vaporised (verb) Convert or be converted into vapor.Assuming it's still there and not tungsten
Only thing is you and a few thousand others would be fighting over the same gold bar. If you could find a gold bar of course.
If gold falls as a result of the impending down day tomorrow, I am buying again. A lot.
You might. It takes the market a couple of days to react. Also, new code might need to be added to those Algos.
2008 all over again, this time the interest rate isn't at 5%.
They'll just run 3 trillion $ deficits this time. Hell yields on treasuries are at all time lows!
May 2013 : FED Balance Sheet : 7 trillion.
(You know they can do it)
Stocks vs. flows, bitchez.
It took $16 trillion last time to staunch the bleeding (plus another $10T in CB swap facilities), resulting in FRS balance sheet growth from $900B to $2+Trillion. If a similar proportionality holds this time, your $7T estimate implies a flow-through of something like $70T to $105T. Recognize too that risks are far more concentrated and larger now than they were in 2008. These jerks actually doubled down in the meantime.)
So if your estimate's even remotely right, then NO, they can NOT do it. At least not without destroying the banks, the system, and themselves. ....not to say that they wont try, just that they wont succeed.
Never said it would succeed. It might succeed for a while... but ultimately it won't... just like the 2000 bubble or the house bubble or the Soviet economy... and I just pulled 7 trillion out of my ass. I don't know what the real number would be...
And now another episode of:
Taxpayers: Bailout My Bonus
Starring Jamie Dimon and Co-Starring Bruno Iksil...
Finally I am a member of ZeroHedge !!!
Yes !!!
Welcome! Now your name and relevant tracking information has been added to the DHS "watch list" database, congratulations!
Enjoy your stay at the FEMA camp!
I call top bunk!
Server is in Switzerland.
At the very least, proxy yourself and spoof the MAC.
Server is in Fort Meade
Welcome......bitchez!!
Welcome to the jungle.
Welcome
You’ll learn more in one day from these guys on ZH than 10 years of MSNCNBC&FUX.
Amen.
Welcome to fight club.
Give Tyler $20 and say thanks for all the wisdom he's about to dump down your cranium in the next 6-12 months.
Oh yeah and like the Doc said -- welcome to fight club.
I REALLY DONT GET IT. WHATS SO BAD ABOUT THIS?
Surprise!
our taxes will go towards covering those losses.
Great work, ZH. What is interesting is that Dimon admitted that they first started looking at this after WSJ reported. Talk about internal controls at the world's most resilient bank.
More likely they got caught, so they had to come clean. PMs have been disfunctional for the last 8 months.
2 billion, 1 trillion I still say why the fukk we only down a blip on the futures. Tell me this is "isolated" and "contained". It's a cockroach.
Pretty sure JPM owns the FED, therefore, a couple billion in losses isn't really a big deal. Surprised they even felt the need to discuss it (emergency after hours call - how dramatic).
I would be VERY surprised if this loss totals only a couple of billion.
This is going to be much worse than they're letting on.
They are lying about the amount. It has to be much more. This has got to be a bait and switch. Everyone, look for what is under the other bowl. What can it be?
JP Morgan was (probably) present during the Federal Reserv Act's charter at Jekyll Island. I'd say his friends and progeny still hold influence over the organization.
Do you hear that? Choppers. Big ones.
I prefer Jayne Mansfield's or MM's bust to JPM bust.
Don't expect her giving head, cause she lost it.
What's $20B among friends? No worries, Jamie, We the People got your back. Don't forget to collect your $20m bonus as you pass Go.
Wouldn't it be terrific if JPM had been trading on behalf of Charlie Munger?
After all, the Civilized have to stick together.
Isn't this the right time for Charlie Muncher to come out and tell Is-kill to "suck it up"????
Queue up the PPT! Tomorrow's gonna be a busy day.
Dunno. Could be a banking holiday in the cards passed off as a "technical glitch preventing markets from functioning."
Besides, the Bernank only needs fifteen minutes anyway...
That would be a tough job in these times. I would rather pick oranges in California.
Dick Bove was wrong again...
Bove is NEVER wrong ... he's just "early" ... or "late" ... or something ...
you think?
CIO usually means 'Chief Information Officer.'
If that's the acronym of JPM's prop trading desk, then who runs their computer systems?
Skynet administers itself.
Thats for the computer jokies. In the "investment" world CIO means Chief Investment Officer.
chief indebtment orifice? Some whale!
i would love to see these psycopathic frat boys put out of business and into jail....
What a heroic move. JPM sacrificed itself for QE3. They better get a medal of honor or something for this, brings a tear to my eye...
chill. the fed does qe3 now it will look a wall street bailout, obama will have ows set up camp in his a-hole
It was nicely built tho. With the Iksil stories last month and all.
Now they will have to save teh economiez for teh childrens.
Or some similar flavor of derp.
Yeah, I mean, Wall Street is probably about to detonate it's greed/leverage/derivative time-bomb any day. So this may have been brewing for a while. They are shadowy f*ckers. Last time, 2008, these idiots took it right to the brink, released news to the public that Lehman and every corner of Wall Street was stuffed. 11th hr. Then the bailouts, print jobs, stupid congress acting fools, tarp etc etc etc
Could be the same ploy. Last min panic, then throw it at the Fed and goverment Still the Fed does a bailout to justify greed and America still sinks into the abyss. Won't be good...
Suffice to say a Lehman event has been triggered on top of the EZ madness and China crash looming
My goodness this is going to be messy:
6:09 (Dow Jones) When did JPMorgan realize it had a troubled synthetic credit portfolio on its hands? Just four weeks ago, its CEO and CFO scoffed at reports that a trader nicknamed the "London Whale" was taking outsized bets, saying on an April 13 call they were "very comfortable" with the positions in the portfolios managed by the chief investment office. The comments came after a WSJ report that the trader developed a massive position in credit default swaps in corporate bonds that hedge funds were trading against. On a mea culpa call Thursday, JPM's CEO said small losses came in the first quarter and snowballed in the second. Asked on the call if, in retrospect, there were any signs they should have picked up on, the CEO said "Trading losses ... there was some stuff in the newspaper and a bunch of other stuff."
Tyler the MAN said this a month ago -
It’s Macris, not Iksil, who was behind the strategy that led to an unprecedented build-up of credit risk in JPMorgan’s chief investment office, three former employees of the bank said. While they expressed doubt Iksil can unwind his positions without causing a dislocation in the markets he trades, they also said JPMorgan probably can afford to hold the assets until they mature and so won’t be forced to sell them.
Now who in the world believes the losses are only going to be $2 Billion.
Before or after their bailout?
How will Bob Pisani on CNBC spin this as apositive tomorrow?
"The important thing to remember here is..."
lol
i love chaos.
The unwind should be interesting... Lets see who isn't wearing trunks? I berkshire takes it is the ass & Charlie is forced to buy needle and thread.
I gotta get up in the middle of the night again and goose the Spoos
Signed, TPPT
Maybe this was behind the big break in gold this week?
That would imply JPM was long gold.
Doesnt seem likely.
No, it implies they were covering their shorts, and they might be long NOW.
Now Jamie will demand less regulation and blame Obama for "uncertainty" even louder than before!
more whales on the horizon? Let alone the shoal of sharks which is just so business as usual.
aackphthpt
Pubic hair?
not in JPM, they are all clean shaven, security measures and Louis Vuitton-christian dior aesthetics. This is a top class hooker show.
Its a good thing Chase has a "fortress" balance sheet.
Wells Fargo on the other hand reecks.
Yes, sofa fortress. Jamie Dimon is king of the fort he made with Ben's couch, and his balance sheet and profits are as real as the fort. It's even better at juice and cookie time, when Con-gress comes around with some bailout punch, and some more cushions for the fort. Just remember it's fun to be king of the fort until Dad comes home drunk and pissed (Hint:Dad is the 99%) and beats the shit out of you.
This would be a great time for JPM to start "hedging" with purchases of it's CDS so Jamie can show a MtM gain next month.
Now we need a $10 pop in silver.
Today is a bad day to be JPM. First the Shanghai exchange started trading silver contract to reign in manipulation "volatility" and now this. A $10 pop in silver would be SO sweet at this point. Kick them when they are down, so they know how it feels. Alas, Silver prices is the first thing I checked after reading the news to no avail.
If only this was a loss from their commodities desk, looks like it wasn't. I wouldn't be surprised to see silver hit $27 tomorrow or lower and +1% on the S&P. This kind of stupid wacky shit has happened before and somehow the fundamentals/action you'd assume never happens (this is when you buy). Sometimes I think it's easy to forget that markets are in fact manipulated and in in some cases across the board they are manipulated from low interest rates, to the kind of shit Bruno was doing.
I'm still hoping it rips JPM a new asshole though and forces them to liquidate some of their farther out shorts, that would make it rise but then everyone would buy (this is not when you buy) and they'd come in and pile drive it once more with their free monopoly money.
nobody thought too big to fail would fail like that
(again)
Is this incident connected to the inexplicable $1.24 billion "fat-finger" gold trade about a week ago?
For sure.
Dimon was SO right to criticize Obama for attempting to impose new regulations to control the risk taking of invesment banks. These guys are investment geniuses who need to be left alone to do God's work.
They are doing God's work, he wants them to fail. The banks follow a darker, more evil guy, a guy who Jamie Dimon wanted as a mentor.
Obama's advisors tonight:
Option 1 - QE3
Option 2 - OK Israel to bomb Iran
Option 3 - False flag terrorist event (we have several ready to go Mr president)
Option 4 - All of the above
maybe this is the hope and change he was talking about ...
1 out of 2 ain't bad.
Looks like you're close Mark:
U.S. Concerned Netanyahu, Mofaz May Attack Iranhttp://www.israelnationalnews.com/News/News.aspx/155690#.T6xtKb9vMn0
Too bad. Obama's busy with George Clooney and the Hollywood crowd. He'll get back to you.
What crisis?
JPM about to lose a 38 handle, down 2.74, minus 7%. Silver bouncing twice off of 29.
7% is nothing ... should be down 15%-20% on this news.
Wait until the open tomorrow.
I'm waiting for the day it doesn't open, when Mr. Market finally starts to speak up and disburse the oligarchy/media fog of BS: JPM last 37.98. Silver dropping also: 28.98.
but..but...fox business has their talking heads on saying it is an isolated incident and just a head fake.
Does anyone think this has to do with MF Globl? The so called missing Money.
Possibly.
Jamie claims they "just found out about this" ... what if that's a lie, and they have known about it for a LONG time ... what if that payment JPM demanded from MF at the 11th hour was because Jamie knew about these losses and taking additional losses from MF Global's collapse would have put them under - and probably taken the entire financial system with it. Fuck, if that senerio is true, the whole thing could have even been coordinated with the FEDs blessing.
Well they did it with somebody's blessing that is for sure.
I wonder how many billions will be Corzined in this mess.
Tyler,
First of all, great call. You have a near monopoly on insightful financial news about these manipulated markets.
Second, can you explain how it is possible for the vix to flash crash like it did at close today?
http://www.zerohedge.com/news/guest-post-how-manipulate-vix-settlement-p...
This is it. It's over. Brings to mind Jeremy Irons in 'Margin Call' :
http://www.youtube.com/watch?v=xOO1NY6ctYU
http://www.youtube.com/watch?v=L5gZrgGXOco&feature=related
http://www.youtube.com/watch?v=9MRoF25gPAg&feature=related
Let's see now... Jamie Dimon. Jamie Dimon. Oh, yeah. Isn't he the guy that was bitching about regulation a few months back? It makes me sick the way the financial press makes this guy into such a rock star. What a fucking hypocrite...not that that's unusual on Wall Street.
I'm surprised, that so many here are surprised!!...
One more time..."MY MAIN MAN", Sleeps with One Eye Open, An Ear To the Wind, Nostril Sniffing the Air...AT ALL TIMES!!!
Doubt, "MY MAIN MAN" NOT!!
JPM CIO Office: see what happens when you don't log out and the cleaning lady is dusting your keyboard....
http://www.youtube.com/watch?v=-22tna7KHzI
" if credit spreads soar, assuming at $200 million DV01, and a 100 bps move, JPM could suffer a $20 billion loss when all is said and done."
So if no QE they go bust? S&P downgrade US debt they go bust?
on a related note...Goldman Sachs had only one day last quarter where they didn't make money. It begs the question, What happened on that one day? Also interesting that Jim Grant is making the rounds, (first Bloomberg and CNBS today,) talking about how the Fed cannot possibly control all the games are being played in light of ZIRP. The risks are impossible to gauge against zero. If so, how many other bad trades are out there?
JP Morgue.
Mind you, if anyone can raise money from a corpse, it's them. It'll be interesting to see who made money from this between the time it was known by Dimon et al, and the time it was admitted.
Could this be a sign of the derivatives bubble finally bursting? Like to see Bernanke print his way out of that hell!
No chance Chairsatan running out of printables, he has lots of toilet roll paper
How true it is... If you don't know history your bound to repeat it! And Here We Go Again. The American people in gereral are so a sleep, apathetic and complacent. They have a very short memory. Just how the Fed wants them. I talk with alot of people about many subject covered here on Zerohedge and they look at me like I am from another planet. They have a rude awakening coming!
As long as Apple is offering them upgrades to the upgrades put out 3 months ago, all is good in the world.
"now so large that JPMorgan probably can’t unwind them without losing money or roiling financial markets"
Kind of like that Silver Short position.
That might go some way to explaining the recent panic sales in gold and silver by an agent who cared nothing of price or profit, but simply needed to drive down the paper prices.
Dimon goes Bart Simpson: eat my shorts ;-)
It sure feels like a flush. Also, I would say that they have lined all the sheep ready for a kill on the upside and not only in the commodity market. They could ride the QE wagon to end the year in the green. I wonder if that is what Diamond talks about when He mentions that they can make the losses this year.
Any predictions for tomorrows PM market?
,,,no need to wait for tomorrow now that we finally have a Shanghai Silver Futures exch....right?
Do you a have link to get quotes?
To Alfred B.
Do you think Shanghai Silver Futures exch will be able to take real control of silver manipulation?