I wasn't talking about CDS, and I am aware that Blythe Masters is credited with inventing the CDS while at JPM. I think it's still too early to tell if CDS are

I wasn't talking about CDS, and I am aware that Blythe Masters is credited with inventing the CDS while at JPM. I think it's still too early to tell if CDS are good or bad on the whole. Ultimately, they're just insurance contracts, which have been around for hundreds of years. But that's another discussion. I'm talking specifically about subprime. JPM and Goldman explicitly decided at the very highest levels of management to remain uninvolved in certain areas of the subprime mortgage market. Chase did originate subprime loans, but it did not securitize them and for a long time, did not make a market in subprime bonds. Chase also stayed away from certain areas of alt-A lending, in particular option ARMs, which have become one of the most toxic forms of mortgage debt. Also, JPM didn't purchase billions upon billions of subprime bonds and subprime-backed CDOs, like Merrill, UBS, Citi, and other banks did. That's why JPM has taken "only" $6bn in writedowns over the past 18 months, vs. over $30bn each for Citi, Merrill, and UBS. And yet Jamie Dimon remained CEO of JPM through the mortgage lending boom, despite staying away from its most lucrative areas. You might find the following article interesting: http://money.cnn.com/2008/08/29/news/companies/tully_jpmorgan.fortune/index.htm http://money.cnn.com/2008/08/29/news/companies/tully_jpmorga...