Lunchtime-ish Links: Tragedy strikes the JPMorgan commodities bonus pool

Just when physical commodities traders were revelling in their earning power, something has come along to spoil the party - or at least, something has come along at JPMorgan.

The New York Post is reporting that JPMorgan has lost as much as $250m, and maybe more, on a bad coal trade in the past quarter.

JPMorgan is not commenting on the rumours. If true, they may be mildly catastrophic for the JPMorgan commodities bonus pool, and for JPMorgan's appetite for risk taking in commodities, which had increased, and should have been fuelled by the purchase of the European business of RBS Sempra's European divisions in February, but is now likely to be curtailed.

"Many of the bonus and incentive programs that contributed to the financial crisis remain in place." (NY Times)

Baby boomers running hedge funds want to hand over to a younger generation. (Bloomberg)

For some hedge funds, May was not merely on a par with but worse than October 2008. (Financial Times)

SAC Capital is setting up a new unit to trade financial companies. (BusinessWeek)

Three Citadel veterans are starting their own hedge fund. (Wall Street Journal)

Canadian hedge fund veterans are opening a fund charging much lower fees. (Globe and Mail)

"The in-flows are drying up. In Europe, hedge fund investing has become almost immoral in the light of the directive. American investors are still keen on hedge funds but the opportunities are so great over there that they don't need the hassle of investing over here." (Telegraph)

The EU will be pushing ahead with a levy on banks. (FT)

Europe is about to become one big anti-speculator zone. (Business Insider)

Another senior credit banker has left JPMorgan. (Financial News)

Goldman's attempts to game the FCIC reflect its trading mentality. (SenseonCents)

The more economics you study, the more right wing you will become. (Baseline Scenario)

Japanese finance ministry says women prefer men who invest in state bonds. (Bloomberg)