Syunosuke via flickrIt’s not just hedge funds that are profiting by taking the other side of JP Morgan’s losing billion dollar trade.
The San Francisco based bank,the biggest US home lender and owner of the nation’s largestbranch network, also seeks to buy a business that would giveclients greater access to handpicked hedge funds, he said.
A group of about a dozen banks, including Goldman Sachs Group and Bank of America have scored profits that collectively could total $500 million to $1 billion on trades that sometimes pit them directly against J.
Some banks made money off JP Morgan’s positions by trading directly with Bruno Iksil by buying protection on the Investment Grade Series 9 10 Year Index from the bank.
Since JPMorgan Chase announced its surprise $2 billion, and growing, trading loss there have been renewed calls from economists, pundits and politicians to reinstate the Glass Steagall Act, a Depression era law that prevented commercial banks from participating in investment banking activities .
Morgan intending to sell them to clients but weren’t able to, according to traders and people familiar with the matter.
These banks built positions for either themselves or for clients in the insurance like products called credit default swaps that J.
Read the whole WSJ report there >
SEE ALSO: Rival Traders Are Buzzing That JPMorgan’s Loss Could Spiral Up To $7 Billion.
Morgan Chase at least $2 billion are shaping up as a boon for some of the banks biggest rivals.
Alicia Yarnold is a business journalist based in San Francisco, California. Alicia has a passion for financial markets and breaking news stories and loves writing about business news, stock market, and economic opinions that matters most to its audience. Alicia spends a lot of time discovering and researching latest financial markets and industry news stories in order to make sure the latest and greatest stories are brought to you first on BigBoardNews.com.