A secretive JPM Trader in London, alternatively
known as 'the London Whale' or 'Voldemort,' is
distorting the credit derivatives markets with massive positions, and a
willingness to move them advantageously in the markets. It is a classic case
of gambling with other people's money, in this case the excess capital
provided by the Fed and the Treasury.
I am sure they are all legitimate hedging positions as Blythe Masters just
asserted without proof. lol.
There may be action on this, however, as JPM is hurting other trading desks
and not the average person. The public is prey but the financial powers take
care of their own.
JPM is TBTF (Too Big To Fail) and TCTP (Too Connected To Prosecute).
This must seem ironic given Jamie Dimon's recent 38
page letter complaining about regulations which are stifling his firm. See
this Bill Moyers interview with Paul Volcker about 'Gambling with Other People's
London and NY are the centers of global market abuse, particularly London
which provides a haven for privileged abuse.
JP Morgan has to all appearances been distorting various markets for years
with impunity. They dominate the silver market with opaque positions and have
been the subject of an inquiry by the CFTC which has been quietly stalled for
years, most likely based on their political influence and government ties.
If the full truth ever comes out it may be a scandal larger than Enron,
Lincoln Savings, and Madoff combined. And that is why it likely will not ever
be fully revealed, because it compromises so many in the political and
financial establishment. It is a premier example of the credibility trap
that is stifling genuine reform and real economic recovery.