Jason Burack: JP Morgan Issues Margin Call Warning For Hedge Funds, Can Do Margin Calls 7 Times/Day

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Wall St. For Main St., Released on 7/14/21

Bear Stearns had similar problems with hedge funds in 2007…

JP Morgan warns hedge funds to expect intraday margin calls www.risk.net/investing/785322…

US bank may demand variation margin ‘up to seven’ times a day after Archegos default

JP Morgan is warning hedge fund clients that it will demand they post more cash at any time during the day if their trades lose value. The biggest US bank by assets called clients of its prime brokerage division in the aftermath of the collapse of Archegos Capital Management, according to three people familiar with the matter. JP Morgan told the hedge funds and family offices that they would have to post more collateral on their single-name equity swap positions if they lost value intraday.

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Jason Burack is an investor, entrepreneur, financial historian, Austrian School economist, and contrarian. Jason co-founded the startup financial education company Wall St for Main St, LLC, to try to help the people of Main Street by teaching them the knowledge, skills, research methods, and investing expertise of Wall Street. You can also find Jason’s work at his blog website at www.jasonburack.com.

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