Blythe Masters is perhaps the most famous woman on Wall Street in recent years . Not only for his impressive grasp of mathematics and their exploits commanding financial business for JP Morgan but also by the crisis , critics say , helped trigger like Bernard Madoff in 2008 . The truth is that on your head hang important fraud allegations . But its output is neither easy nor cheap how many believe .
The most recent case was born with the heritage of a handful of power companies obsolete JP Morgan received from a customer who snapped by the crisis. Any consultant would recommend investing and modernizing plants or close them and sell them. But Masters mathematics used to confuse the automated systems auctioned electricity, according to a commission that investigated fraud and needed to achieve a thick dossier explaining the maneuver. By manipulating energy prices the JP Morgan to pay a fine of more than $ s 400 million. Federal authorities asked the head of Masters for lying under oath , but could not accuse her .
After a series of scandals , it is worth noting that he generated millions in profits at JP Morgan fundamentally from 90 with his ultimate creation , the credit default swaps ( CDS ) that revolutionized the derivatives market , Masters is now in the center of the gossip of the financial world mainly because it is almost the right hand bank president Jamie Damon. This British who was noted for his brilliance in mathematics earned her Ph.D. in economics from Cambridge was spotted very early by JP Morgan for the London office . His fame grew after working tirelessly to bring his laptop when he went to deliver her daughter to watch quotes while still operating . Before he was 30 and was executive director and transferred to New York offices .
A mid 90's Masters sophisticated financial product design , credit default Swap ( CDS ) . Everything started from the collapse of a major customer of the bank , Exxon that the late 80 Exxon Valdez ran aground in Alaska causing an ecological disaster. The aim was to protect the bank's credit exposure to the oil company could go bankrupt . It invented the transfer of risk to another investor via the CDS , a kind of insurance policy. Then the influential diplomacy JP Morgan got the honorable European Bank for Reconstruction and Development, the first CDS subscribe . Thus, an important European entity agreed annual sum for endorsing the risk of Exxon , at the expense of that if declared bankruptcy due to cover the collapse .
Then successive developments of Masters and other experts through mathematical derivative resulted in a kind of junk bonds as conceived in the '80s by Michael Milken and then served to enhance the business of subprime mortgages that ended up causing the last crisis financial crisis. These bonds had the particularity that were almost indecipherable precisely the risk of investment , ie , the buyer did not know he was buying , and were also the perfect vehicle for transfer of investor investor thus spreading land mines across the market. That was how the great debt underwriters makeover the subprime ( subprime ) and distributed everywhere. Before the financial meltdown of 2008, the business of these derivatives had climbed to more than 650 billion dollars , which meant ten times world GDP .
But now loads on their backs Masters three failures to command commodities division of JP Morgan . After losing a million-dollar bet on coal prices in Europe in 2010 , is in the eye of the storm over alleged manipulation of the price of silver (the bank is one of the largest holders of silver in the world and have sold call options via ETF to lower the price ) , to which was added the penalty and punishment for maneuvering in the electricity market ( the Federal Energy Regulatory found eight strategies for handling electricity prices ) . Many betting on Wall Street that it was the "third overdue " but disregard the compensation cost to discard Masters. The bets are thrown , may be more costly dismissal of the history of investment banking. For now still competing .
(used google traslate just to confirm Mr Maddoff isn't the real problem. The greatest scams ALWAYS began by maths)