Remember when Jamie Dimon claimed that their trading was meant as a hedge? Why is this guy not in a jump suit for lying to Congress. From the report on the Synthetic Credit Portfolio (SCP):
JPMorgan Chase told the Subcommittee that the SCP was not intended to function as aI suppose no one would really be surprised that big banks like JPMorgan are gaming the system and playing with taxpayer insured funds—privatizing any gains and if things blow up stick the bill to taxpayers since they're Too Big Too Fail. What a broken, perverted and distorted system that special interests have created for their own benefit. And the scary part: it seems there's no way to reverse it since the electoral system is financed by the beneficiaries of such scams and politicians pay lip service but don't actually address the problem which is them and the special interest financing of elections!
proprietary trading desk, but as insurance or a “hedge” against credit risks confronting the bank. While its original approval document indicated that the SCP was created with a hedging function in mind, the bank was unable to provide documentation over the next five years detailing the SCP’s hedging objectives and strategies; the assets, portfolio, risks, or tail events it was supposed to hedge; or how the size, nature, and effectiveness of its hedges were determined. The bank was also unable to explain why the SCP’s hedges were treated differently from other types of hedges within the CIO.
