Reuters: Regulatory News: REFILE-Fed data expose $100 billion JP Morgan position

Reuters: Regulatory News Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

REFILE-Fed data expose $100 billion JP Morgan position May 24th 2012, 11:25 Thu May 24, 2012 7:25am EDT LONDON, May 23 (IFR) - Official data from the US Federal Reserve have laid bare the eye-watering size of trading positions built up by JP Morgan's chief investment office in synthetic credit indices, raising further questions about risk management standards at the bank. According to the figures, which are reported by banks on a quarterly basis and posted on the Fed's website, JP Morgan's position in investment-grade credit default swaps jumped eightfold from a net long of $10 billion notional at the end of 2011 to $84 billion at the end of the first quarter this year. The Fed data support previous reports about the nature of the trading strategy that has led to the losses. In investment-grade CDS with a maturity of one-year or less, JP Morgan's net short position rocketed from $3.6 billion notional at the end of September 2011 to $54 billion at the end of the first quarter. Over the same period, JP Morgan's long position in investment grade CDS with a maturity of more than five years leapt five times from $24 billion to $102 billion (see chart). "I don't care how big a bank you are, that's still a big move," said one seasoned credit analyst.

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions