For J.P. Morgan Trader, From ‘Caveman’ to ‘Whale’ – WSJ.com

May 17, 2012 – How Could J.P. Morgan Lose $2 BillionMonths before Bruno Iksil became famous as the “London whale,” the trader who contributed to a loss of more than $2 billion at J.P. Morgan, earned a different nickname: the “Caveman,” for pursuing trades that rivals sometimes thought were overly aggressive but often led to huge profits. Pictured above, J.P. Morgan’s London office at Canary Wharf.

Last year, Mr. Iksil (pictured above) had a $1 billion bet that companies in a certain group would default on their debt. Many hedge funds and rival banks viewed Mr. Iksil’s move as risky and took the other side of his trade.

But when the parent companies of American Airlines and power company Dynegy, Inc. filed for bankruptcy protection last year, Mr. Iksil’s positions brought a windfall of about $450 million to J.P. Morgan, saddling hedge funds and other rivals with similar-size losses.

Some of these traders would get their revenge on Mr. Iksil months later, taking the other side of bets that contributed to the more than $2 billion of losses for J.P. Morgan and raised questions about the bank’s risk controls. Mr. Iksil is expected to leave the bank but it isn’t clear when, said people familiar with the situation. Mr. Iksil didn’t respond to a request for commentFollow the link below for the complete story of greed gone bad.

The Master of Disaster

For J.P. Morgan Trader, From ‘Caveman’ to ‘Whale’ – WSJ.com.

About wfoster2011

Disaster researcher and current financial and economic news and events: Accidents, economics, financial, news, nature, volcanoes, floods, earthquakes, fires; airplane, ship & train wrecks; tornadoes, mine cave-ins, hurricanes, pestilence, blizzards, storms, tzuami's, explosions, pollution, famine; heat & cold waves; nuclear accidents, drought, stampedes and general. Futures trader using high volume and open interest futures markets. Also, a financial, weather and mundane astrologer with over 30 years of experience. Three University degrees from California State University Northridge: BS - Accounting MS - Busines Administration BA - Psychology Served in the U. S. Army as an Armored Platoon Leader in the 5th Battalion, 68th Armored Regiment, 8th Infantry Division (Retired). Have published three books and 36 articles available for sale through my blog: Commodology - Secret of Soyobeans (Financial Astrology) Timing is the Key (Financial Astrology) Scum City, a fiction novel (no longer available, under contract to major publisher) Currently resident of Las Vegas, NV, USA
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