Russian-American investor, Len Blavatnik, whose industrial holding company, Access Industries, reportedly lost $98 million on subprime investments wants to have a word with the House of Dimon. Blavatnik alleges his JPM banker, Ted Ufferfilge, had a unique interpretation of a conservative, low-risk strategy for his investments is suing JPM for his losses. When the subprime market started to tank and Blavatnik wanted out, Ufferfilge gave him those soothing words of wisdom- the investments were “money good”. JPM points out that anybody vulnerable enough to wind up in subprime investments qualifies as a “sophisticated investor” and therefore the lawsuit is frivolous.
“We believe this lawsuit is meritless and a transparent attempt to recover losses resulting from the unprecedented market downturn. We intend to defend this matter vigorously.”
Company Is Planning to Sue Chase Over Investment Losses [NYT]
calling blavatnik “sophisticated” is outrageous and he can prove it
Losing $98 mm in the subprime crisis is killing it
I’m always amazed that somehow “wealth” is equated with “sophistication.”
In my experience, even those who’ve acquired that wealth IN FINANCE, such couldn’t be further from the truth.
Monday BLANUS!
Hey! You gotta have deep pockets. You bet big and you either win big or lose big. That’s the way the pros trade.
~A real broker who knows how to talk to “clients”.
Ufferfilge?
Utterfilth?
Uberfelch?
Basically JPM takes no responsibility for the advise they give to their clients. That’s like my parking garage that isnt responsible for stolen items while the car is in their garage!
Its like Obama when thing are going well he takes credit, when shit hits the fan its all Bush’s fault. I would love to hear just once, one of these assholes “know it alls” say “they fucked up and they were wrong and they dont know shit about what they are saying”. It seems unless these guys can corner a market and guarantee an outcome they clearly as good as an E-Trade account.
I havent heard anyone take responsibility for anything!
“a-d-v-i-c-e”
@7
And you think this jabroni is trying to do what, exactly, in trying to blame his naivete and poor investing acumen on JPM?
@7
You fail, in finance ignorance deserves the reward it gets. These aren’t exactly securities you buy in your E-trade account. These are complex products and if you invest based on the advice that an Ibank (who has a monied interest in you buying the product) gives you and not your own analysis you deserve to be hosed.
10 Really? I thought the Ibank gets paid (and by extension deserves) big fees because of the value of their advice. Apparently not. So in reality the fees are just another way to hose the client?
@10, So Madoff investors deserved what they got?
@11
First of all he was probably “advised” by a Private Banker.
Second, yes, if you buy a product because of the advise of the guy/gal selling it (without considering 3rd party advice) you deserve what you get.
@ 12
Yes. For him to deliver what he was claiming he had to be either frontrunning or straight bullsh*tting. Some people rationalized, some probably suspected but didn’t care as long as the $$ kept coming.
Of course, many wealthy people who invested with him weren’t at all sophisticated enough to grasp this simple concept, in which case Madoff was doing g-d’s work of separating fools from their money.
@10, 12: C’mon it’s one thing for an 80-year-old woman on a fixed income to listen to the advice of the nice young man in the sharp suit who tells her he’s here to help ensure she has enough money to live out her life and proceeds to sell her shit; and quite another thing for a sophisticated investor buying complex products. So those Madoff investors who had the resources and financial acumen to have researched his background and record–and failed to do so–well, no one “deserves” to get defrauded, but they don’t get the same sympathy from me as the 80-year-old widow.
Blavatnik owns his own holding company and has $98 mill to throw into a single investment and all he does when the mkt gets in trouble is listen to the soothing words of his advisor? Fuck that. If I had 98 THOUSAND invested in that shit, I’d do more due diligence on my own.
@11 Do you value the advice of a (used)car-salesman?
Save for a couple of boutiques, bankers are all sales people: sell a CEO on a shitty idea, then sell the securities created to finance it. The “advisor” thing is just one more sales pitch.
Is this the guy who lives in Hollywood?
having ground out some deals with this Russian Jew and crew, I have it on good authority, my own, that this is noise, given the fact that his chemical empire crumbled under massive LBO whiplash
die Semen Bodine II,die
@18
do you disagree?
@9 he placed his money with JP, he paid them fees for INVESTING advise, the sold him out. Either they did it intentionally or they have no idea what the fuck they are doing. Either way, its their fault.
@12
10 here
Yes. His returns made no sense, way too stable and high for way too long. any green money manager fresh out of community college with 2 weeks training and no AUM could have told them it may have been a ponzi.
@11
It’s your money. If you are investing 98 million you should understand the risks just as well as your advisors do. If you don’t, put it in a money market fund.
@19 not particularly, i just hate you
@22
that’s awesome…i will definitely keep posting
you didn’t answer my question from the other day. are you a top?
semen you suck donkeycock
stay classy dude