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Tuesday, July 03, 2012

Ex-JPMorgan Trader Feldstein Biggest Winner Betting Against Bank - Bloomberg

Ex-JPMorgan Trader Feldstein Biggest Winner Betting Against Bank - Bloomberg

Feldstein, a former JPMorgan executive who helped the company create the credit-derivatives market, profited by exploiting price distortions caused by the outsized bets and then aiding the bank in unwinding the trades as it sought to cap the loss, according to four people with knowledge of the strategy who asked not to be identified because the matter is private. BlueMountain enabled JPMorgan to unload more than $20 billion of its bets on a credit-swaps index, two of the people said.
Kinda like an orthopedist who caps your knee, then does the surgery.

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