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The Magnetar Trade: How One Hedge Fund Helped Keep Bubble Going

23 pointsby minus1about 15 years ago

3 comments

jfagerabout 15 years ago
This article is the financial-world equivalent of beating up on a security researcher for working on Windows exploits.<p>JPMorgan is a grownup company, it ought to be able to take care of itself. Outrage over the crisis should be directed squarely at those who weren't smart enough to see the problems with these practices but were issuing insurance and ratings anyways, and at the powerful companies who used politics and fearmongering to convince the government to take over their idiot counterparties' obligations so they could get paid off at 100%.
simon_about 15 years ago
I was working in the same markets at the same time - Magnetar's trade was widely known and considered pretty shady. We thought they were exposing themselves to big liability/reputation risk, but it seems like it worked out fine for them.
pasbesoinabout 15 years ago
I haven't read this article, yet, but FWIW, U.S. public radio's "This American Life" has a segment this week on the same topic, done in conjunction with propublica. It was an interesting listen.<p>TAL podcasts are available free for one week beginning the Monday after each show's weekend debut.<p>EDIT: Podcast description page: <a href="http://www.thisamericanlife.org/podcast" rel="nofollow">http://www.thisamericanlife.org/podcast</a>