JPMorgan Trading Loss: Did Regulators Miss the Risk?

Discussion in 'Wall St. News' started by OnClose, May 26, 2012.

  1. OnClose


  2. Banjo


  3. These bankers using customer deposits to make large gambels should be dragged into the streets and beaten senseless. However the bigger problem is the moron voter who voted in the politicians who undid decades of good regulation for a few thousand dollars in campaign donations.
  4. pupu


    Yep, Government regulations in many areas has been gutted by industry and the public only finds out about this after a major meltdown and even then, often nothing is done.

    Hopefully we won't have to go through a real meltdown in a place like Indian point. Apparently regulation of nuclear reactors isn't much better then wall street regulation...
  5. that's why I always invest in industry instead of keeping it in the bank. Industry does a much better job of gutting regulations than the banks do. I'm just a conservative investor. I'll leave investing in banks up to the professional speculators like Warren Buffet.

    But I agree, we could all make more money if there was less regulation.
  6. Perfect. I'm starting to connect the dots. Wall street can now roll out a new security called "Muttonhead Regulator Swaps (MRS)". I'm sure AIG can price insurance for this type of thing after the other group of dumbshits at Moody's rubber stamps their triple A rating on it.

    Unfortunately the SEC will probably be first to corner the market though :/.
  7. I dunno.

    JPM with $78.1 trillion in derivative exposure.

    Everyone moaning about 2-3 b loss. someone was on the other side and made that.

    Lehman went bk for 640b, no one was on the other side of that.

    Madoff - only 1/2 of his investors loss money, everyone lost money on Lehman.

    I don't think 2-3 b loss is all that devastating in the grand scheme of things.

    National debt is growing @ > 6b a day.
  8. First thought on this:
    That's what regulators do: They "Slack".
    On CNBC, they said there was a whole ROOM FULL of regulators tracking JP Morgan's positions.
    Nuff said.
    SEC: worthless
    CFTC: worthless

    This is the root of our problems: all of these expensive government agencies NOT DOING THEIR JOB. So apparent in the Bernie Madoff case.
  9. Asking if they missed the risk mistakenly assumes they were looking in the first place. Like taxes, there is what's written, and then there is what actually happens.
  10. SamGold


    The bigger and the older the trick... the easier it is to pull... based on 2 principles...
    #10     May 28, 2012