Opening Bell

Opening Bell: 06.12.12

JPMorgan Knew Of Risks (WSJ)
Last year, top CIO executives set a plan to roll back a separate set of large London trades—only to learn later that the plan hadn’t been followed correctly. The concerns dating back to 2010 show that J.P. Morgan had an opportunity to avoid the bungled trades, which over time could cost the bank as much as $5 billion…The company’s investigation is expected to reveal a series of miscues. They include trading-risk limits that were too broad, a new trading model adopted this January that masked mounting dangers, and the failure of top executives to sufficiently probe the huge positions at the CIO, according to the people familiar with the matter. When Mr. Dimon asked then-CIO head Ina Drew about the trades in early April, for example, she didn’t fly to London to visit the trading group, according to people close to the investigation. Achilles Macris, the London-based head of international at the CIO, assured her on a video conference call that everything was under control, these people said. Ms. Drew and Mr. Macris didn’t respond to requests for comment.

House Of Dimon Marred By CEO Complacency Over Unit’s Risk (Bloomberg)
“That’s absurd,” said Kristin Lemkau, a spokeswoman for the bank. Winters, Black and Staley never complained about a specific risk in the CIO’s office, she said. If they had, Dimon’s protocol would have been to gather the relevant data, let them talk to Drew and return to him if they weren’t satisfied with her response, a bank executive said. The operating committee, on which they all sat, also could have reviewed the matter if they still had concerns, the person said. It’s also “totally untrue” that Hogan questioned why the CIO didn’t have as effective or robust risk controls as other divisions, Lemkau said.

Loophole At MF Global Is Headache For Regulators (WSJ)
Most of the senior executives at MF Global Holdings Ltd. weren’t registered with commodities regulators, meaning the executives can’t be charged with supervision failures related to the firm’s collapse.

Austrian Minister Says Italy Too May Need Bailout (Reuters)
Just so you know.

Dingo took baby who vanished in Australian Outback in notorious 1980 case, coroner finds (NYDN)
Australia – Settling a notorious 1980 case that split the nation and led to a mistaken conviction, an Australian coroner ruled Tuesday that a dingo took a baby from a campsite in the Outback, just as her mother said from the beginning. The eyes of Lindy Chamberlain-Creighton and her ex-husband, Michael Chamberlain, welled with tears as the findings of the fourth inquest into the disappearance of their 9-week-old daughter, Azaria, were announced in court. Lindy Chamberlain had been convicted and was later cleared of murdering Azaria, and has always maintained that a wild dog took her. Many Australians initially did not believe that a dingo was strong enough to take away the baby. Public opinion sway harshly against the couple; some even spat on Chamberlain-Creighton and howled like a dingoes outside her house. No similar dingo attack had been documented at the time, but in recent years the wild dogs have been blamed for three fatal attacks on children. “No longer will Australia be able to say that dingoes are not dangerous and only attack if provoked,” Chamberlain-Creighton said before leaving the court.

How the SEC Could Pursue a Case Against JPMorgan (Reuters)
JPMorgan Chase’s failure to timely disclose a major change in how it measured risk could become the centerpiece for an enforcement action by U.S. securities regulators as they probe the bank in connection with its multibillion dollar trading loss. By omitting the change from its earnings release in April, the bank disguised a spike in the riskiness of a particular trading portfolio by cutting in half its value-at-risk number. JPMorgan did not tell investors that the model for its Chief Investment Office had been changed until May 10, the same day it revealed the failed hedging strategy had produced a loss of at least $2 billion.

Gupta Labeled As ‘Truthful’ (WSJ)
On Monday, Mr. Gupta’s lawyers called a handful of friends and people associated with philanthropic causes to which Mr. Gupta has devoted his time to testify about his integrity, including Ashok Alexander, director of the Bill & Melinda Gates Foundation’s HIV-prevention initiative in India, and Anil Sood, a former World Bank employee and childhood friend…”I have always admired since my childhood days that Rajat is straightforward, direct and truthful and inspires trust,” said Mr. Sood, who has known Mr. Gupta since they were in grade school together in India.

Hedges’ Assets: $5 Trillion (WSJ)
The hedge-fund industry may more than double in size during the next five years, to more than $5 trillion in assets, as private fund firms broaden their offerings to compete with traditional money managers, according to a recent Citigroup survey.

Apple Stock at $1,000? Analysts Say Within Two Years (CNBC)
“I couldn’t be more bullish on Apple right now,” Brian White, Analyst with Topeka Capital Markets, a broker-dealer, told CNBC Asia’s “The Call” on Tuesday. “When I look forward to the fall, we have got an iPhone 5 expected in September, I think we are going to see an iPad mini at the same time in September, we have got an Apple TV that’s clearly on its way in the next several months… I couldn’t get more excited about Apple.”

Old Fathers May Produce Offspring With Longer Lives (Bloomberg)
FYI: “Children of older fathers, those in their late 30s to early 50s, inherit longer telomeres, caps at the end of the chromosomes that protect them from degeneration, according to a study today in the Proceedings of the National Academy of Sciences. Longer telomeres seem to promote slower aging and may mean a longer lifespan for these children, the study said.”

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58 Responses to “Opening Bell: 06.12.12”

  1. Guest says:

    The girls all laugh at my tiny telomeres

  2. Guest says:

    So has it been proven that between 2 siblings with the same parents, separated in birth by decades, the younger one will always live to an older age than the older one– or have they conveniently come up with a counter theory that pregnant old moms lop 10 years off your age to negate the old fathers?

  3. Lanie says:

    So the Dingo did eat yo babay.

  4. Guest says:

    We'd like to thank Meryl Streep for memorializing the words, "The dingo ate my baby; the dingo ate my baby!"

  5. Guest says:

    Looks like Corzine is the only one they can go after, then…

  6. Guest says:

    Dimon is screwed. No amount of slick talking and reach arounds can save him now.


  7. Grinders says:

    Short Apple, Long Telomeres.

  8. VonSloneker says:

    $1,000 AAPL price target, eh? By way of warning…ever heard of me? My name is Walter Piecyk. Exactly…

    – PaineWebber "Telecosm" Analyst who now curses the day he fell in love with Qualcomm

    • Deleveraging says:

      Now with iMessage, there's another reason for the phone carriers to screw with Apple

  9. traffic sucks says:

    I also "always admired that Rajat is straightforward, direct and truthful". Which is why I immediately traded off the inside information he passed on and coined that $$$.

    – Raj ^2

  10. Guest says:

    JPM should have hired Adoboli instead of Iksil. Would have saved them $3billion and counting…

  11. Guest says:

    So regulators don't have an angle to pursue against the management of MF Global? That's unfortunate.

    Why, if only Congress had been wise enough to pass legislation that required senior corporate executives to take individual responsibility for the accuracy of their financial reports and the strength of internal controls and which provided criminal penalties for violation of the same, the regulators would have a watertight case and wouldn't have to be pursuing weak "failure to supervise" charges.

  12. Deleveraging says:

    Old Fathers May Produce Offspring With Longer Lifespans. What's with all of the Jim Rogers posts lately?

  13. Guest says:

    After years in captivity, the male orca's dorsal fin begins to atrophy and lose its rigidity due to routine circular swimming in the shallow safety of an enclosed tank, as opposed to the rigors of the wild ocean. I think a number of us can relate.

    – Married suburban father of three

  14. Richy says:

    If Topeka Capital Markets says Apple will hit $1k, then its destiny has already been foretold

    ~ Guy who belives in second chances

  15. Guest says:

    A Greek, a Spaniard and a Frenchman allowed to play with billions of dollars? Anyone for a Euro crisis metaphor?

  16. BealDreaker says:

    Alpa Chino: I'm just fucking with you, Kangaroo Jack! I'm sorry a dingo ate your baby.
    Kirk Lazarus: You know that's a true story? Lady lost her kid.

  17. guest says:

    How is this not on the Bell?

    I vomited in my mouth a bit after reading it.

  18. _guest says:

    "JPMorgan Chase’s failure to timely disclose a major change in how it measured risk could become the centerpiece for an enforcement action by U.S. securities regulators as they probe the bank in connection with its multibillion dollar trading loss."

    We might be able to help you there.

    -Paul Sarbanes
    -Michael Oxley

  19. WhoWhaWhen says:

    "The hedge-fund industry may more than double in size during the next five years, to more than $5 trillion in assets, as private fund firms broaden their offerings to compete with traditional money managers, according to a recent Citigroup survey."

    So now I'll get the same shitty returns for 4x the price?

  20. Malisa says:

    <img src=> What's happening to Zynga today? Is it time for bottom fishing?<img src=>

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