Replies to post #175071 on Tornado Alley (PROG)

[SilverSurfer]

the little hands do good work... Big Bank Hands given an explicit guarantee of Giant Gov is anything but invisible --- ;^ )

[SilverSurfer]

when the Govs save bad actors, those who were careless and slopppy did'nt learn a lesson to correct their errors, they get bold from knowing they have to be bailed out and go even deeper into mind numbing risk at our eventual expense.. SEE!!!!!!!!!!!!!!!!!!

why did JPM put in so much money at risk in a prop trade because we can dispense with the bullshit that his was a hedge, right? Simple: because it knew with 100% certainty that if things turn out very, very badly, that the taxpayer, via the Fed, would come to its rescue. Luckily, things turned out only 80% bad. Although it is not over yet: if credit spreads soar, assuming at $200 million DV01, and a 100 bps move, JPM could suffer a $20 billion loss when all is said and done. But hey: at least "net" is not "gross" and we know, just know, that the SEC will get involved and make sure something like this never happens again
. http://www.zerohedge.com/news/worlds-largest-prop-trading-desk-just-went-bust.