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(9,446 posts)

14. Portfolio Based on Another Portfolio

Thu May 10, 2012, 07:16 PM

May 2012

As Far as I know it is a portfolio based on an actual portfolio.

"Synthetic credit products are derivatives that generate gains and losses tied to credit performance without the owner buying or selling actual debt. The losses occurred as the company sought to unwind a portfolio of the instruments used to hedge JPMorgan’s credit exposure."

http://www.bloomberg.com/news/2012-05-10/jpmorgan-chase-says-cio-unit-suffered-significant-loss.html

For a better explanation you might want to watch Money, Power, and Wall Street, which was an episode of Frontline.

http://www.pbs.org/wgbh/pages/frontline/money-power-wall-street/

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Highlight:

JPMorgan Discloses $2 Billion in Trading Losses [View all] swag May 2012 OP

Oops..... DeSwiss May 2012 #1

It's the hedge funds now that have JP Morgan Chase by the shorts FarCenter May 2012 #22

No bailouts JP, and Dimon no bonus for you this year. sarcasmo May 2012 #3

And how many billion in bonuses? Vidar May 2012 #4

What? With all of their computers and analysts and algorithms and whatnot? truthisfreedom May 2012 #5

So much money, so little time to lose it all. originalpckelly May 2012 #6

synthetic credit portfolio ? NeoConsSuck May 2012 #7

Portfolio Based on Another Portfolio erpowers May 2012 #14

So step down, Dimon. Personal responsibility, remember! CanonRay May 2012 #9

Fire Jamie Dimon erpowers May 2012 #10

What does such a loss mean to their tax liabilities? Trillo May 2012 #11

JPMorgan Woes Signal Trouble for Banks, Market: Fast Pros Purveyor May 2012 #13

Well we all know what they need to do now zeemike May 2012 #15

And they will get bonuses for keeping the losses small. ChairmanAgnostic May 2012 #17

Is it time yet for another bailout? AnotherMcIntosh May 2012 #18

was that $2 billion.... unkachuck May 2012 #19

Why Didn't Dodd-Frank Prevent This Sort Of Thing DallasNE May 2012 #20

I am not sure Dodd-Frank is fully implemented yet hack89 May 2012 #24

Losing in the London casino FarCenter May 2012 #21

"it could easily get worse.� Renew Deal May 2012 #25

This is a HUGE story, folks dbackjon May 2012 #26