J.P. Morgan and the Credit Default Swaps Monster

It is difficult to assess the J.P. Morgan $2-billion loss based on the information released so far.  That doesn't stop the knee-jerk anti-capitalists, though, from charging Jamie Dimon with reckless neglect or worse. Many analysts -- notably among them Charlie Gasparino in the Huffington Post, of all places, took a more sensible approach and pointed out that risk-taking is part of any capitalist enterprise.  No doubt, as details emerge, it will be easy to second-guess everyone from the "whale" trader to Chairman Dimon himself.  Still, it is always fun to play detective and try to figure out the riddle from the available information.  Apparently the FBI is about to play cops and robbers with JPM's management.  Millions of taxpayer dollars will be wasted; the truth, whatever it is, should be quite simple. What seems indisputable is that the whale made trades on behalf of the bank.  Most observers are suggesting that these trades were meant to...(Read Full Article)