Bloomberg reports that JPMorgan made $250-$300 million on the Swiss turmoil, they cite two sources.
JPMorgan CEO Jamie Dimon
Interestingly:
JPMorgan told clients it would complete all orders at 1.02 francs per euro as the Swiss currency appreciated from 1.20 francs per euro to almost 0.85 on Jan. 15, said the people, who asked not to be identified because they weren’t authorized to speak publicly. The decision allowed the traders at the New York-based bank to assess their position immediately and buy or sell the franc accordingly, the people said.
Hmmmmm, the amount of those earnings is just about equal to the amount FXCM lost.
In the grand scheme of things $300m isn’t that big of a gain/loss for an operation like JPMorgan. There must be bigger gains and losses out there somewhere. Billions of options were written in EUR/CHF.
