Blythe Masters and Credit Default Swaps?

[WhiskeyGirl]

I've never heard of Blythe Masters (that I remember).  I didn't know she was retiring or that she is responsible for credit default swaps.

Architect of credit default swaps to leave JPMorgan

It's an end of an era at JPMorgan Chase. Blythe Masters, widely credited as an architect of the notorious credit default swaps that helped fuel the financial crisis, is leaving after nearly three decades at the bank, according to an internal memo obtained by The Washington Post.

read more here - http://www.washingtonpost.com/blogs/wonkblog/wp/2014/04/02/architect-of-credit-default-swaps-to-leave-jpmorgan/

How did this woman keep her job after the 2008 mess?   Did anyone think her idea was bad from the get go?  What did they think was going to happen if something bad happened and the dominoes started falling?

Dodd-Frank may require up to $2 trillion in collateral for swaps, TABB Group says

Money managers and banks must be more efficient in using collateral for swaps, as new clearing regulations will require far more assets to be placed with central counterparties — to the tune of a combined $2 trillion, according to a report from TABB Group.

 

Straight-through processing — in which the entire procress is conducted electronically — is helpful because of the “holistic, circular view” it provides for each trade, from pre-trade to execution and post-trade, Mr. Rhode said. “As each decision is made, (managers) can see it dynamically,” looking for potential inefficiencies and higher costs per trade. Meanwhile, mechanisms to check on the right margin call and risk position have “a significant impact on an investment manager’s cost,” he added. “Managers need the methods and mechanisms to justify the pricing.”

read more here - http://www.pionline.com/article/20140409/ONLINE/140409862/dodd-frank-may-require-up-to-2-trillion-in-collateral-for-swaps-tabb-group-says

Anytime I hear the word 'holistic' I wonder.  What does 'holistic' mean anyway?  Is there a high standard somewhere that people have to meet before calling something 'hollistic'?  Some of the big pet food recalls were for products advertised as 'holistic'. 

How about instead of 'holistic' they use the theory of "no bailouts ever"?  "No more taxpayer money" or "No more robbing Main Street to pay for Wall Street gambling and 'creative' ideas"?

I never knew they had a 'mother' of the CDS identified.

just my humble opinions and suggestions

[WhiskeyGirl]

Ms. Masters, 45 years old, spent 27 years at the New York lender, but her future there became less certain after J.P. Morgan last month announced the $3.5 billion sale of its physical-commodities business to Mercuria Energy Group Ltd. of Switzerland.

 

Ms. Masters, who held several other prominent posts during her time at J.P. Morgan, in her 20s was part of a team that sold regulators and investors on the use of newly invented credit default swaps to shift risk off the bank's books. When the abuse of such derivatives helped trigger the 2008 financial crisis, she acknowledged in a speech in October of that year that she had been branded "the woman who built financial weapons of mass destruction" and disagreed with the characterization.

read more here - http://online.wsj.com/news/articles/SB10001424052702303847804579477531771222484?mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702303847804579477531771222484.html

If she is 45 and has been working for 27 years, she strted at age 18?  Was she 20 when she came up with the idea?  25?

Who exactly was she selling these things to?  Regulators and investors?

A younger Sandra Fluk (spelling?) selling CDOs a.k.a. WMD to regulators?

A twenty something peddling credit default swaps? 

Really?

Is that what the young inexperienced women in Obama's White House are for? 

Aren't their women of all ages capable? 

If you can find qualified men of all ages, why didn't he find qualified women of all ages too?

Sex and youth sells better than common sense?

just my humble opinions and questions