JPMorgan Trader Loses $130 Million Trading Coal

Filed under: JPMorgan Chase (JPM), Goldman Sachs Group (GS), Commodities, Federal Reserve, Financial Crisis

Yup. You've read it right. A JPMorgan trader lost $130 million trading coal. You are probably wondering why a bank like JPMorgan Chase (JPM) is trading coal. That's a good question. But the answer is that banks love to gamble with your money. They gamble every day in the commodity markets.

The new Volcker rule is designed to prevent banks from gambling in the commodity markets, or any other markets for that matter. Most banks have spun off their proprietary trading units. Goldman Sachs (GS) plans to do so. We have not read about JPMorgan yet. This should get the attention of board members, who should tell CEO Jamie Dimon to get cracking and spin off their proprietary trading unit.

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JPMorgan Trader Loses $130 Million Trading Coal originally appeared on BloggingStocks on Sun, 08 Aug 2010 14:10:00 EST. Please see our terms for use of feeds.

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