JP Morgan Loss Bomb Confirms That It’s Time to Kill VaR
One of the amusing bits of the hastily arranged JP Morgan conference call on its $2 billion and growing "hedge" losses and related first quarter earning release was the way the heretofore loud and proud bank was revealed to have feet of clay on the risk management front.
Mirable Dictu! Moody’s to Adjust Bank Ratings Downward for Regulatory Arbitrage
It's hard to imagine anyone will take tough-sounding stances by ratings agencies seriously, but Moody's, in a chat with the Financial Times, says it has (finally) taken notice of how banks play games with regulatory capital requirements.
Jamie Dimon Misrepresented “London Whale” Risks, Admits to $2+ Billion Loss Plus Risk Management Black Eye
As readers likely know by now, Jamie Dimon hastily arranged an after hours conference call today, in which he admitted to $2 billion in losses in the last six weeks from a trade by the "London Whale", Bruno Michel Iksil in the bank's Chief Investment Office, with as much as another potential $1 billion...
Quelle Surprise! Fed Defends Incompetent Bank Management Against Investors
Reader Hecht pointed out a new piece by Steven Davidoff at the New York Times' Dealbook, illustrating the lengths to which the Fed will go to defend incumbent bank managements.
More on Frontline’s Astonishing Whitewash of the Crisis
As readers may know, a recent post, “Frontline’s Astonishing Whitewash of the Crisis,”discussed the first half of the Frontline series, “Money, Power & Wall Street.” Producers Mike Wiser and Martin Smith sent a letter taking issue with this review, and I made an exception to my usual practice and posted their missive.
The...
More on Frontline’s Astonishing Whitewash of the Crisis
As readers may know, a recent post, “Frontline’s Astonishing Whitewash of the Crisis,”discussed the first half of the Frontline series, “Money, Power & Wall Street.” Producers Mike Wiser and Martin Smith sent a letter taking issue with this review, and I made an exception to my usual practice and posted their missive.
The...
Economists, Liquidity Mongers and the Banker Assault on Financial Reform
This has been a bad stretch for advocates of financial reform – and therefore for the economy as a whole. One after the other, new financial regulations contained in the Dodd-Frank law are being gutted or delayed by regulators and Congress, while the bankers – escorted by a phalanx of paid economists, lawyers and lobbyists...
Satyajit Das: The European Debt Crisis Redux
By Satyajit Das, derivatives expert and the author of Extreme Money: The Masters of the Universe and the Cult of Risk Traders, Guns & Money: Knowns and Unknowns in the Dazzling World of Derivatives – Revised Edition (2006 and 2010). Jointly posted with Roubini Global Economics
The half-life of solutions to Europe’s debt problem is...
Morgan Sandquist: Finance in Denial – The Addiction
By Morgan Sandquist, a member of the Occupy Wall Street Alternative Banking Group. Cross posted from mathbabe
Is it fair to say that because the quality of the denial surrounding the banking industry's problems is so similar to that of the denial surrounding addiction, that addiction...
Is it fair to say that because the quality of the denial surrounding the banking industry's problems is so similar to that of the denial surrounding addiction, that addiction...