trying this again, my 'first post' never showed up. earlier, as news was breaking, bloomberg was showing a ticker saying something about >$1B of the potential loses being tied to volatility. anyone know how this would work with the instruments involved? i'm assuming higher vol. = quickening/steepening loses, but i'm sure it's not as simple as this. would the other side of this london whale's trades know what levels of vol. might cause him to break? thanks --pfl
these French aint that dumb, they prob took the other side of the trade in another account. see ya on the Riviera!
I am hearing that they stood to earn only $300-$330MM in yearly premium from the swaps. Nice call Drew, Dimon and Co.
http://www.bloomberg.com/news/2012-05-11/jpmorgan-loses-2-billion-as-mistakes-trounce-hedges.html I think JPM will get out of it OK...
Didn't know of Drew's position in CDI? Which is worse, ignorance or incompetence? Almost as bad at O'Neill and Purcell.
Risk reward and hedge have no definition in Dimon land. If they are putting a 2-3bn number on this thing you know its like 13-20. Hearing they were 25-50% of the mkt...so whats the notional on that? LOL.... How you say, SMOKED?!?!
Yeah, if they had reported a $300MM gain you can be assured there would be no mention of ROC, just how incredibly fcuking smart they were. Dimon Principle. Tool.