Rivals Go to Lunch on J.P. Morgan's Losses |
| Wall Street Journal - May 21, 2012 |
The trading blunders that have cost J.P. Morgan Chase JPM +4.49%& Co. at least $2 billion are shaping up as a boon for some of the bank's biggest rivals.
A group of about a dozen banks, including Goldman Sachs Group Inc. GS +0.82%and Bank of America Corp., BAC +2.05%have scored profits that collectively could total $500 million to $1 billion on trades that sometimes pit them directly against J.P. Morgan's Chief Investment Office, according to traders and people close to the matter.
The banks made money in various ways. Some sought to trade directly with the J.P. Morgan unit and Bruno Iksil, the trader whose large bets earned him the nickname "the London whale." These banks built positions for either themselves or for clients in the insurance-like products called credit default swaps that J.P. Morgan spent much of this year selling. The banks' expectation was that the swaps would rise in value, earning a profit.
Read Full Article from Wall Street Journal
- Posted: 2012-05-22 14:28:31
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