Tuesday, October 19, 2010

JP Morgan has More Trust Issues with Funds - They Would Take Portions of Profits from Funds they Advised, BUT Never Participated in the Losses with Funds, when their Advice was NO Good!

Well, what do people expect from those large Wall Street Banks?  All of them on based on nothing but GREED!  Seems it is coming out that JP Morgan would take a portion of profits in funds and investments they advised clients on - BUT when it came to Losses those funds and clients took that Hit on their Own!


JPMorgan Chase & Company has a proposition for the mutual funds and pension funds that oversee many Americans’ savings: Heads, we win together. Tails, you lose — alone. 

Here is the deal: Funds lend some of their stocks and bonds to Wall Street, in return for cash that banks like JPMorgan then invest. If the trades do well, the bank takes a cut of the profits. If the trades do poorly, the funds absorb all of the losses. 

The strategy is called securities lending, a practice that is thriving even though some investments linked to it were virtually wiped out during the financial panic of 2008. These trades were supposed to be safe enough to make a little extra money at little risk. 

JPMorgan customers, including public or corporate pension funds of I.B.M., New York State and the American Federation of Television and Radio Artists, ended up owing JPMorgan more than $500 million to cover the losses. But JPMorgan protected itself on some of these investments and kept millions of dollars in profit, before the trades went awry. 

So, it seems pensions and all who they have advised in investments, they have the winning card no matter what.  It is like playing Black Jack at a casino, no matter what the Dealer will Win and You will Lose.  Who knew the stock market was like a casino, no matter what the House ALWAYS WINS!  Besides they have all the politicians in their pockets too - So.... it is Always a Win, even if they have to change the laws to make sure they Win and Never Lose!

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