Reuter’s columnist, Felix Salmon, alluded to the genius behind J.P. Morgan’s $2 billion trading loss in credit default swaps, “VaR”, that darn mathematical model that just seemed to fail the sophisticated risk managers again, as it did in the 2008 financial crisis.
- President Obama asks the Department of Justice to investigate if the “London Whale’s” trading losses are being funded by U.S. farmer’s segregated funds moved to J.P. Morgan London, minutes before the M.F. Global bankruptcy. The amounts are close enough.
- Congress requests that Congressman Paul Ryan research if the London Whale’s trading strategies could be used to shore up the solvency of Social Security and Medicare or perhaps VaR modeling could be used to determine new risk parameter inputs which might shed new light on the Social Security and Medicare solvency outlooks.
- President Obama appoints a special task force headed by Harvard Economist and former AIG Board Member, Martin Feldstein and former Senator Jon Corzine to examine the role of over-the-counter derivatives and mathematical models to increase trading revenues on Goldman Sachs Proposed Electronic Credit Default Swap Platform as a key job creation strategy.
- Request that American Enterprise Institute spokesman, Peter Wallinson, appear on Meet the Press tomorrow, with J.P. Morgan CEO, Jamie Dimon, to explain how U. S. homeowners were actually the cause of the London whale’s $2 billion losses and contributed to the apparent misapplication of the mathematical model VaR for risk management assessments.
- President Obama contacts Swiss authorities to ask them to reconsider the renouncing of Congresswoman Michelle Bachman’s Swiss citizenship to delay the repeal of Dodd- Frank, in the interest of global capital markets.
Take a survey of every American:
- Would they prefer to have a fiduciary, as envisioned by Congress in 1940, after the Great Depression, to advise them on their retirement savings or would they prefer a salesmen operating in the best interests of their brokerage firm, with no training in global capital markets, who manages retirement assets based on VaR?
- Further, if their retirement savings are improperly taken by Wall Street, would that retirement saver like the option to go to the Judicial Branch, the Federal Courts, for “their day in court” or to the brokerage industry’s tribunal, FINRA, as House Financial Services Committee Chair Repubulican Bachus has proposed in this Bill April 25, 2012?