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Saturday, 19 May 2012

You couldn't make it up #94

It's been a pretty busy week here at the Financial Crimes with a lot of incoming readership from Zero Hedge, all because of a post I made a few years ago about Matt Zames, rising star at JPM.

Well it seems that not a lot of people spotted that Mr Zames was fingered in a court deposition as having suspicions about Bernie Madoff 18 months before the NY District Attorney got wind and closed him down.  Zames' suspicions were strong enough for him to mention them to a JPM risk officer, but obviously not strong enough to go to the authorities.

Anyway, the reason that Mr Zames, who incidentally is chairman of the Treasury Borrowing Advisory Committee (not bad going for a trader who worked at LTCM, the hedge fund whose failure was so large that it was bailed out to the tune of $3,625 million by US banks under the supervision of the Fed), is now in the news is that he has been but in charge of the $70 trillion derivatives book in the Central Investment Office at JPM.

Between Madoff, LTCM, the stinking carcass of the London Whale and telling the US government how much to borrow, something doesn't smell right.

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