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Stung by a huge trading loss, JPMorgan Chase will replace three top traders starting Monday, including one of the top women on Wall Street, in an effort to stem the ire that the bank faces from regulators and investors.
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When the positions soured, the traders started to value them in a more optimistic way.
For a short while, traders started to distrust what they were seeing.
As their bet worsened, JPMorgan has said, the traders started to underestimate the losses.
But if traders started satiating their outsize appetites at local establishments, lush times would follow.
When ostensible free traders start arguing like this, one really begins to worry.
Western news agencies picked up the report, and traders started bidding crude prices up sharply.
Traders start trying to rig Libor, according to an investigation by the Financial Services Authority (FSA).
But as volume increased, traders started to buy and resell them in what the report calls a "hot potato" effect.
As their bet worsened, the traders started to underestimate the losses, according to JPMorgan's own assessment of the trade.
Then, at the top of the market (in this case, mid-2006), smartsmartradersrstartrtoto cash in their profits.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com