Markets reversed lower today after ProPublica broke a potentially big story about JPMorgan‘s Goldman-esque activities in the CDO business with a certain infamous hedge fund called Magnetar…
The Securities and Exchange Commission is investigating whether JPMorgan Chase allowed a hedge fund to improperly select assets for a $1.1 billion deal backed by subprime mortgages, according to people familiar with the probe.
Called “Squared” and completed in May 2007, the deal was a collateralized debt obligation, or CDO, made up of pieces of other CDOs. The hedge fund, Magnetar Capital, based in Evanston, Ill., purchased the riskiest slice of Squared as part of a strategy to bet against the mortgage market.
Jesse Eisinger absolutely owns this story, he started chronicling Magnetar earlier this year.
Anyway, take a look at JPM intraday:
![bank spank](http://thereformedbroker.com/wp-content/uploads/2010/11/bank-spank.png)
Was this news really what sunk stocks today or was it just an excuse to sell ahead of the mid-terms tomorrow? Too soon to tell. Head over to ProPublica and get yourself up-to-speed.
Source:
SEC Investigating Deal Between JPMorgan and Hedge Fund Magnetar (ProPublica)
Read Also:
Meet the Bialystock and Bloom of the Mortgage Meltdown (TRB)
![](file:///C:/Users/JOSHUA%7E1/AppData/Local/Temp/moz-screenshot-1.png)
… [Trackback]
[…] Read More on to that Topic: thereformedbroker.com/2010/11/01/bank-spank/ […]
… [Trackback]
[…] Read More on to that Topic: thereformedbroker.com/2010/11/01/bank-spank/ […]
… [Trackback]
[…] Read More Info here on that Topic: thereformedbroker.com/2010/11/01/bank-spank/ […]
… [Trackback]
[…] Read More on on that Topic: thereformedbroker.com/2010/11/01/bank-spank/ […]
… [Trackback]
[…] Find More Info here to that Topic: thereformedbroker.com/2010/11/01/bank-spank/ […]
… [Trackback]
[…] There you will find 32413 more Info to that Topic: thereformedbroker.com/2010/11/01/bank-spank/ […]
… [Trackback]
[…] Information to that Topic: thereformedbroker.com/2010/11/01/bank-spank/ […]
… [Trackback]
[…] Here you can find 91768 more Info to that Topic: thereformedbroker.com/2010/11/01/bank-spank/ […]
… [Trackback]
[…] Find More Information here on that Topic: thereformedbroker.com/2010/11/01/bank-spank/ […]
… [Trackback]
[…] Read More on on that Topic: thereformedbroker.com/2010/11/01/bank-spank/ […]
… [Trackback]
[…] Information to that Topic: thereformedbroker.com/2010/11/01/bank-spank/ […]
… [Trackback]
[…] There you can find 7684 more Information on that Topic: thereformedbroker.com/2010/11/01/bank-spank/ […]
… [Trackback]
[…] Find More here to that Topic: thereformedbroker.com/2010/11/01/bank-spank/ […]
… [Trackback]
[…] Info to that Topic: thereformedbroker.com/2010/11/01/bank-spank/ […]