Sunday, May 13, 2012

JPM-Hit by the limits of statistics?

By thetrader.se


We are amazed by the many articles discussing (and giving advice) the JPM “perfectly hedged” trading CIO book, by mainly journalists that don’t understand risk, trading nor (the) greeks. JPM, claiming to have one of the world’s most sophisticated risk management, has apparently lost at least 2 billion USD. What actually happened will probably never hit the media. While journalists debate whether or not to drop VaR as a risk measure, we think it is

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