ProPublica reports that JPMorgan is being investigated by the SEC to determine whether or not the bank adequately disclosed to investors that the securities that went into a CDO were selected by hedge fund Magnetar Capital, which was betting against the deal (JPMorgan apparently lost approximately $880 million on the deal and what’s more). Two problems seem apparent up front– one, unlike Goldman Sachs, whose CDO had the badass name of ABACUS, JPMorgan’s version is called “Squared.” And two, no one has said anything about the role of a Frenchman who describes himself as “fabulous” and writes gushy emails to his ex-girlfriend on the company dime. That’s not going to bode well for JPMorgan when it comes time for Congress to decide whether or not this thing is worthy of a hearing and/or Senator Carl Levin describing it as “shitty” 700 times on live TV. Given that everything on Wall Street is a competition, and JPMorgan is no poor man’s Goldman, I’m going to go ahead and tip off JD and Co as to the only way they’re going to be able to come out on top of this thing. If this woman’s involvement in the deal comes to light: Read more »
- 01 Nov 2010 at 4:53 PM
- 09 Apr 2010 at 4:56 PM
Jesse Eisinger and Jake Bernstein of ProPublica just published an exhaustive narrative on what has become known on Wall Street as the Magnetar trade.
We won’t ruin it for you, but basically the giant Chicago hedge fund, started by former Citadel trader Alec Litowitz (left), helped create $40 billion worth of extremely toxic CDOs after housing prices began to slide in late 2006. With the help of nearly every bank of Wall Street those CDOs were sold to other investors. Read more »
Popularized in films like Limitless, legal smart drugs called Nootropics are becoming more and more prevalent in board rooms and on Wall Street.Keep reading »
Keep reading »
It’s not just doctors and scientists that need STEM education. America’s shifting economy is demanding more trained workers in many different sectors. See how Travis Brooks got the hands-on education he needed to become a technician at the Chevron Pascagoula Refinery. Visit The Atlantic to learn more.
- Hedge Fund Manager Keeps A Detailed Record Of All The Asses He's Grabbed
- Bonus Watch '14: Investment Analyst Turned Fantasy Sports Team General Manager
- Bonus Watch '14: Citigroup
- Buy Anything With The Word ‘Cuba’ In It
- Sage Kelly Bids Jefferies Adieu
- Bill Ackman Just Can't Help Himself
- If You Stand Perfectly Still, Dan Loeb Cannot See You: Sony Execs
- 10 Reasons Wall Street Is Using Smart Drugs Crush Work
- Opening Bell: 12.18.14
- Bonus Watch '14: Jefferies
- Executive Editor
- Bess Levin
How Can We Help You?
- Send tips to:
- For tech issues email:
- For advertising or events email:
- For research or custom solutions email:
- Dealbreaker is published by Breaking Media.
For a full list of our sites, services and staff visit breakingmedia.com