"Long GM and Ford protection trades were some of the only good proxies for hedging the Chrysler exposure that these banks were about to get stuffed with," the report stated, according to a Bloomberg report at the time.
Got that? First, a group of banks led by JPMorgan made a $12 billion loan. Then they tried to sell it, but couldn't find many buyers. So they dipped into the unregulated, opaque credit default swaps market to try and buy protection -- except that they couldn't find the CDS they wanted, so they had to buy similar ones. That complex, undisclosed multibillion dollar maneuver is just one piece of the massive puzzle that is JPMorgan's exposure to the U.S. auto industry. In other words, JPMorgan shareholders, just cross your fingers, and hope Jamie Dimon is telling you everything you need to know.TheStreet Premium Services
Jim Cramer's Action Alerts PLUS:
Trade right alongside a Wall Street pro — enjoy access to his Charitable Trust portfolio and be sent trade alerts BEFORE he makes a move. Learn More
OptionsProfits:
Get 50+ trade ideas a week from the industry's top options experts. Plus — exclusive commentary on market trends and essential trading tools. Learn More
Real Money:
Our team of professional Wall Street Pros — including Jim Cramer, Doug Kass, and Nicholas Vardy — delivers intelligent analysis, timely trade ideas, and colorful commentary. Learn More
Stocks Under $10:
Break into the market with small- and mid-cap stocks... all $10 or less! David Peltier tells you exactly which low-priced stocks he's buying and selling. Learn MoreTo begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
blog comments powered by Disqus
| Dow Jones | S&P 500 | NASDAQ | 10-Year Note |
|
|---|---|---|---|---|
| 12,454.83 | 1,317.82 | 2,837.53 | 17.45 |
Oil *
107.03
|
|
DOWN
74.92 |
DOWN
2.86 |
DOWN
1.85 |
DOWN
0.14 |
10 Yr
1.74%
SPDR Gold
152.68
|
|
-0.60%
|
-0.22%
|
-0.07%
|
-0.80%
|
Data delayed 20 minutes |
Connect with TheStreet