Blythe Masters
Encyclopedia
Blythe Sally Jess Masters (born 22 March 1969) is an economist and current head of Global Commodities at J.P. Morgan Chase. From 2004-2007, she was Chief Financial Officer of J.P. Morgan Chase's Investment Bank and previously served as the Head of Global Credit Portfolio and Credit Policy and Strategy.
, Masters was raised in the south-east of England She attended The King's School
in Canterbury
on scholarship. She graduated in 1991 from Trinity College, Cambridge
with a B.A. in economics, and joined the bank J.P. Morgan & Co.
after completing a number of internships there while still a student.
, a form of insurance that protects a lender if a borrower of capital defaults on a loan. In 1994, J.P. Morgan had extended a $4.8 billion credit line to Exxon
, which faced the threat of $5 billion in punitive damages for the Exxon Valdez oil spill
. A team of J.P. Morgan bankers led by Ms. Masters then sold the credit risk from the credit line to the European Bank of Reconstruction and Development in order to cut the reserves which J.P. Morgan was required to hold against Exxon's default, thus improving its own balance sheet. J.P. Morgan later bundled together packages of these loans and offered them to market as BISTRO, for Broad Index Secured Trust Offering, and these new financial instruments were quickly adopted by other banking institutions.
When derivatives played a role in the 2008 financial crisis, Masters maintained the misuse of credit derivative products as instruments of speculation required regulators to distinguish between tools and their users: “Tools that transfer risk can also increase systemic risk if major counterparties fail to manage their exposures properly.” In April 2010 she told the Economic and Monetary Affairs Committee of the European Parliament that "there are definitely lessons that have to be learnt. I for one feel that I have learnt from that experience and there are things I may like to have seen done differently".
In 2006 she was named J.P. Morgan's head of Global Commodities. She has frequently represented the industry in Washington D.C. on everything from potential curbs on commodities trading to the financial regulatory overhaul.
From 2004 to 2007, she was chief financial officer of the Investment Bank, and previously served as the head of Global Credit Portfolio and Credit Policy and Strategy, responsible for managing the credit and market risks of the bank's retained credit positions, the development of credit strategy, policies, infrastructure and limits to measure and control credit risk.
Masters is a current board member and chair emeritus of the Securities Industry and Financial Markets Association
.
Education
Born in OxfordOxford
The city of Oxford is the county town of Oxfordshire, England. The city, made prominent by its medieval university, has a population of just under 165,000, with 153,900 living within the district boundary. It lies about 50 miles north-west of London. The rivers Cherwell and Thames run through...
, Masters was raised in the south-east of England She attended The King's School
The King's School, Canterbury
The King's School is a British co-educational independent school for both day and boarding pupils in the historic English cathedral city of Canterbury in Kent. It is a member of the Headmasters' and Headmistresses' Conference and the Eton Group....
in Canterbury
Canterbury
Canterbury is a historic English cathedral city, which lies at the heart of the City of Canterbury, a district of Kent in South East England. It lies on the River Stour....
on scholarship. She graduated in 1991 from Trinity College, Cambridge
Trinity College, Cambridge
Trinity College is a constituent college of the University of Cambridge. Trinity has more members than any other college in Cambridge or Oxford, with around 700 undergraduates, 430 graduates, and over 170 Fellows...
with a B.A. in economics, and joined the bank J.P. Morgan & Co.
J.P. Morgan & Co.
J.P. Morgan & Co. was a commercial and investment banking institution based in the United States founded by J. Pierpont Morgan and commonly known as the House of Morgan or simply Morgan. Today, J.P...
after completing a number of internships there while still a student.
Professional career
Responsible for the structuring and distribution of credit derivative products at J.P. Morgan, Ms. Masters became a managing director at 28, the youngest woman to achieve that status in the firm's history. She is widely credited with creating the modern credit default swapCredit default swap
A credit default swap is similar to a traditional insurance policy, in as much as it obliges the seller of the CDS to compensate the buyer in the event of loan default...
, a form of insurance that protects a lender if a borrower of capital defaults on a loan. In 1994, J.P. Morgan had extended a $4.8 billion credit line to Exxon
ExxonMobil
Exxon Mobil Corporation or ExxonMobil, is an American multinational oil and gas corporation. It is a direct descendant of John D. Rockefeller's Standard Oil company, and was formed on November 30, 1999, by the merger of Exxon and Mobil. Its headquarters are in Irving, Texas...
, which faced the threat of $5 billion in punitive damages for the Exxon Valdez oil spill
Exxon Valdez oil spill
The Exxon Valdez oil spill occurred in Prince William Sound, Alaska, on March 24, 1989, when the Exxon Valdez, an oil tanker bound for Long Beach, California, struck Prince William Sound's Bligh Reef and spilled of crude oil. It is considered to be one of the most devastating human-caused...
. A team of J.P. Morgan bankers led by Ms. Masters then sold the credit risk from the credit line to the European Bank of Reconstruction and Development in order to cut the reserves which J.P. Morgan was required to hold against Exxon's default, thus improving its own balance sheet. J.P. Morgan later bundled together packages of these loans and offered them to market as BISTRO, for Broad Index Secured Trust Offering, and these new financial instruments were quickly adopted by other banking institutions.
When derivatives played a role in the 2008 financial crisis, Masters maintained the misuse of credit derivative products as instruments of speculation required regulators to distinguish between tools and their users: “Tools that transfer risk can also increase systemic risk if major counterparties fail to manage their exposures properly.” In April 2010 she told the Economic and Monetary Affairs Committee of the European Parliament that "there are definitely lessons that have to be learnt. I for one feel that I have learnt from that experience and there are things I may like to have seen done differently".
In 2006 she was named J.P. Morgan's head of Global Commodities. She has frequently represented the industry in Washington D.C. on everything from potential curbs on commodities trading to the financial regulatory overhaul.
From 2004 to 2007, she was chief financial officer of the Investment Bank, and previously served as the head of Global Credit Portfolio and Credit Policy and Strategy, responsible for managing the credit and market risks of the bank's retained credit positions, the development of credit strategy, policies, infrastructure and limits to measure and control credit risk.
Masters is a current board member and chair emeritus of the Securities Industry and Financial Markets Association
Securities Industry and Financial Markets Association
The Securities Industry and Financial Markets Association is a leading securities industry trade group representing securities firms, banks, and asset management companies in the U.S. and Hong Kong. SIFMA was formed on November 1, 2006, from the merger of The Bond Market Association and the...
.
Personal life
Blythe Masters is Board Chair of the NY Affiliate of the breast cancer charity, Susan G. Komen for the Cure, and a member of the Board of Directors of the National Dance Institute. Her hobbies include amateur horse-riding. She lives in New York with her husband and their daughters.External links
- blythemasters.org
- Blythe Masters Informational Blog
- Blythe Masters Facebook Public Profile
- Blythe Masters LinkedIn Public Profile
- Blythe Masters Twitter Page
- Blythe Masters Crunchbase Profile
- Blythe Masters Google+ Profile
- Blythe Masters About Me
- Blythe Masters Tumblr
- Blythe Masters Posterous Page
- Blythe Masters Biography, J.P. Morgan Chase
- Crains New York 40 Under 40 Profile
- Business Insider Profile
- 2010 Out For Business Keynote Speakers
- The Daily Pennsylvanian