OK, now this is just getting tiresome.  It’s like banging your head against a brick wall.

I would hope EDJ knew what they were doing with the proceeds of the structured notes.





If you direct BILLIONS of your clients assets into investment vehicles you sure as hell better know where that money is ending up.



If they didn’t know ,then they didn’t do their due dilignence.



These investment banks ended up with 40:1 leverage, and EDJ helped them get there.

I would hope EDJ knew what they were doing with the proceeds of the structured notes.


If you direct BILLIONS of your clients assets into investment vehicles you sure as hell better know where that money is ending up.

If they didn’t know ,then they didn’t do their due dilignence.

These investment banks ended up with 40:1 leverage, and EDJ helped them get there.

I absolutely despise Jones… but there is no way you can pin this on them. Jones was never close to being a large part of the selling group on those deals.



Another thing… it’s possible Lehman lied to Jones about what they were doing anyway, because up until the Friday they went bankrupt, GENIUS fixed income guy Mario DeRose was saying that Lehman didn’t have any problems and that client money was safe.

Jones rep in Tupelo, MS (former trucker), raised money from his investor via lehman structured note, Lehman then provides the cash to a mortgage broker (former pizza delivery guy) to provide financing for sub prime mortgage.





The problem is you have a former trucker and former pizza delivery guy responsible for dealing with the individuals providing and receiving the money.

Jones rep in Tupelo, MS (former trucker), raised money from his investor via lehman structured note, Lehman then provides the cash to a mortgage broker (former pizza delivery guy) to provide financing for sub prime mortgage.


The problem is you have a former trucker and former pizza delivery guy responsible for dealing with the individuals providing and receiving the money.

I hate Jones too but agree with Moraen, Jones not a player in this mess. Never had any Lehman but had GMAC, Citigroup, almost had Congress Financial (Wachovia)…I can’t resist.

Jones had sold alot of Lehman, Bear, & Goldman structured notes which were directly used to purchase sub prime cmos.



investment banks were just the middle man between the rep selling the structured note and the mortgage company that originated the loan

Wow, I never realized Jones was the only firm selling financial structured notes.  I guess every other firm knew a year ago that whole industry would blow up, and Jones was the only one selling them.  It’s remarkable that we have $500B in firm-held assets, more than half of which are mutual funds, which leaves $250B for CD’s, bonds, stocks, SMA’s, money market, UIT’s, etc.  Sooooo, let’s assume for arguments sake that 10% of the 50% was in structured notes.  That’s $25B.  Of that, a good portion was not in financials, but in other industries.  So let’s say half was in financials - that’s $12.5B spread among maybe 6 or 7 different firms.  So we’re talking MAYBE $2B per financial firm.

Josephjones107,

You are going to lose this argument.  B24 made a valid point and there is nothing you can write or say to back up your arguments.  I'll bet EJ sold less structured notes than the bigger firms like Morgan, Merrill and Goldman. 

Lapide

My turn–I was at Jones for 14 years and now at LPL for 2 years.  I hold nothing against Jones and to try and blame them for selling those notes is nuts!  LPL and CommonWealth sold them too!  Everybody sold them!  I even bought some for my own portfolio!!!

I, too, believe it or not, will say just how ridiculous this thread is.  This is like a really bad episode of Matlock.  You're trying to connect dots that just aren't there.  Almost every time I tranfer the account of some retiree, no matter what firm, indy-wirehouse-Jones-bank, I'm likely to find these notes.  For the record, I sold some of these notes early in my career--mostly Bear Stearns with coupons around 8%.  All of them were called in the last couple of years.  I have some Lehman Bros. on my book ($25K to be exact; my work) as well as some Ford and GMAC paper (transferred in).  Most of the GMAC stuff is very small positions, some as small as $1000, and you can hardly get bids on it anyway at this point. 

Hey Josie Jones,



If you have been watching these boards for any amount of time, you would know that when half the Jones bashers get on here and defend Jones, well, you’re bird is cooked.



It’s obvious that you’re making some sort of feeble attempt at creating a public controversy surrounding the credit meltdown and trying to connect Jones to it. But the fact is, you have to have real, hard facts to back it up. I have no more inside information than anyone in the firm that reads our financials, and it wasn’t hard to deduce the fact that we are just not a big enough pawn in this game to make a difference. Truth be-told, I don’t think any one firm or person has sole responsibility for the entire mess.

Greed and ignorance. That’s all it was.

JoJones,

I too would fall on the side of Jones on this matter.I still have AMBAC insured (what’s that worth?) Alt-A Countrywide CMO’s (you can’t go wrong with AAA rating)on the books…Statements look crummy but at least the income is still paying…Spiff- As my 5 year old  daughter would say HEAR THIS!!!

See, I knew you folks really deep down…way deep down…love and care for good ole EDJ.  I’m going to send all of you a new EDJ green koozie.   

i am surprised people took the time to respond to the initial post. 

Spiff…you know, now that I think about it…XBox 360’s theme colors are white & green…they would match the office decor just fine! 

KUMBAYA MY LORD, KUMBAYA    (AHHHH LOVE IS IN THE AIR!) 

By selling strutured product.  Yes, big I-banks sold them, but generally not to their individual wealth management clients.  Most investment advisors at that level ran away any structured product that their banks put in front of them to sell.  That’s why they turned around and sold them to lower level corner brokers like EDJ, because their salesforce is just that, a salesforce.  They don’t question the quality of a product with the same degree of knowledge that a wealth manager has.  Not their fault, they were educated by EDJ and with a BS in Geology from University of Southwest Nowhere State, instead of having a CFA and a Harvard MBA.  Who could expect them to peel back the layers of documentation that accompanied those structured products.  But did they really care anyway?  Cause it makes it easier to sleep at night and claim ignorance, while at the same time cashing in on their clients misfortunes.