Fehrnstrom apparently has no earthly idea "how it works in a public market." Plenty of people who weren't investors in JPMorgan are harmed by this -- most notably you.
First, let's let NPR's Planet Money explain what happened:
The trade came to light earlier this year, when reports surfaced of a "London Whale" — a trader at JPMorgan who had accumulated a position so big it was affecting the whole market.
The trade involved an index of corporate credit default swaps. These are essentially insurance policies that pay off if a company can't make payments on its debts. (Credit default swaps became a household name during the financial crisis, when they were central to the blowup of AIG, a giant insurance company.)
JPMorgan took the big hit when it tried to back off from the trade and had to sell at a loss.
Here's what I want to make extremely clear here: JPMorgan didn't get screwed on some deal by someone who outsmarted them. No one out there is $2 billion dollars richer because of this. The bank might as well have stacked up $2 billion in American wealth -- that's two and nine zeros -- and put a match to it. It's just gone. $2 billion taken out of the US economy and nothing to show for it...[CLICK TO READ FULL POST]