Best of the Blogs: Who's Profiting From JPMorgan's Big Loss?
By Kathleen Culliton May 16, 2012 11:35 am
Minyanville's daily roundup of some of the best financial commentary from around the Web.
This column highlights the most interesting and useful business and financial commentary from around the Web each day. Use our comments section to post your own suggestions for blog content that you've read or written.
CNN Money: Term Sheet
"Is Dodd-Frank, the law that is supposed to make the banks less risky, actually to blame for JPMorgan's (JPM) huge trading loss. Earlier this year, Neil Chriss, who runs hedge fund Hutchin Hill, said in a Bloomberg interview that he was looking to profit by buying up positions that the large banks might be forced to exit because of Dodd-Frank banking reforms. It appears he found one. Hutchin Hill is one of the many hedge funds rumored to be making money on JPMorgan's $2 billion trading blunder." (For related content, see JPMorgan's Trading Loss Is Not a Failure of the Fed's Stress Test.)
"Imagine a real estate investing niche fueled by society’s demand for higher education, then factor in a government unable to meet the housing demand, created by an endless drumbeat of 'you’ve got to go to college or you’ll be a miserable failure in life' messages heard by millions of American high school students. Real estate investor Doug Fath invests in student housing and apartments, and he claims it’s an untapped growth market for the foreseeable future."
New York Times: Bits
"In Wednesday’s New York Times, Andrew E. Kramer tells the story of Alisher B. Usmanov, a Russian steel tycoon who made an ambitious bet on Facebook (FB) in 2009, in the midst of the global recession. With a less than $900 million investment in Facebook through two Russian entities, Mr. Usmanov and his business associates stand to make more than $6 billion in Facebook’s initial public offering, based on the price range for the stock set by Facebook’s bankers." (Also read Four Reasons to Avoid Facebook Stock.)
Capital Gains and Games
"Unless the House decides to consider another makes-no-sense-and-has-no-effect bill such as the “reconciliation” bill it passed last week, the fiscal 2013 budget process essentially is over and done with until after Americans go to the polls in November. Yes, action on appropriations will be needed by the time the fiscal year begins Oct. 1. But even if there is some spending Sturm und Drang, the most likely outcome at that point will be a bipartisan shrug of the shoulders and a short-term continuing resolution that avoids a government shutdown before the election."
Wall Street Journal: Market Beat
Wall Street Journal: Market Beat
"The US dollar index, which measures the greenback against a basked of six other currencies, has risen for a 12th straight day. Earlier it hit its highest level since January. The dollar index was recently up 0.8% at 81.27. It is up 3.4% this month. The rising greenback has come as stocks continue to struggle. The Dow Jones Industrial Average (^DJI) is on pace for its ninth decline out of the last 10 days, as Greece’s failure to form a coalition government has raised concerns about the country’s future in the eurozone." (Also Read Why Stocks Can Make New All-Time Highs.)
No positions in stocks mentioned.
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