

J.P. Morgan Flags $2 Billion Trading Loss - hinathan
http://online.wsj.com/article/SB10001424052702304070304577396511420792008.html

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maybird

      The Journal reported in April that hedge funds and other
      investors were making bets in the credit-default swap
      markets to take advantage of volatility that stemmed from
      the trades done by Mr. Iksil, who worked out of the Chief
      Investment Office.
    

After everything that's happened, they're still allowed to play the CDS
lottery? I'm really disappointed regulators haven't put a stop to this.

For a great insight into the role of CDS'es in the recent economic events, I
highly recommend this documentary:

[http://www.pbs.org/wgbh/pages/frontline/money-power-wall-
str...](http://www.pbs.org/wgbh/pages/frontline/money-power-wall-street/)

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decode
Reminds me of a quote from Lawrence Lessig in this talk at Occupy DC:

<http://www.youtube.com/watch?v=XZPB6DqCO6M#t=08m29s>

"It is the first time in American history where we have seen a collapse
followed by no fundamental reregulation of the financial services sector
because they have the power to block change from either the Democrats and
Republicans, because they can say to the Democrats and to the Republicans, 'If
you don't back us we guarantee you will lose in the next election.'"

I don't know history or politics well enough to judge the truth of the
statement, but if he's right, that's pretty scary.

