JPMorgan Chase Trading Loss
JPMorgan announced on May 10 a surprise $2 billion loss from trades in its chief investment office, a division that was little known before Bloomberg News first reported in an April 5 story about the trades of the firm's Bruno Iksil. Nicknamed the "London Whale," Iksil had amassed a position so large that he was moving credit derivative markets. The story sparked a debate over whether the division, led by Ina Drew, one of the top women on Wall Street, was engaged in proprietary trading activities that would be outlawed by the looming Volcker rule.
JPMorgan Chase & Co. investors overreacted to a $5.8 billion trading loss during the first half of this year and Chief Executive Officer Jamie Dimon is doing a “great” job, former CEO William B. Harrison said.
JPMorgan Chase & Co.’s board of directors assigned former KPMG International Chairman Timothy Flynn to its risk committee after an internal probe blamed lax controls for a $5.8 billion trading loss in London.
JPMorgan Chase & Co. pays Jamie Dimon $1.21 million for every $1 billion of profit at the biggest U.S. bank. Industrial & Commercial Bank of China Ltd., the world’s most profitable, gives its top executive $9,400.
Wall Street, the global financial community reeling from public outrage and increased regulation, is proving incapable of finding a champion to replace sidelined JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon.
Moore Capital Management LLC, the hedge fund that had boosted its JPMorgan Chase & Co. investment earlier this year, joined other firms in selling the bank’s shares following a multibillion-dollar trading loss.
The debate over whether the U.S.’s largest banks are too big is heating up. Since the 2008 financial crisis, the perception has taken hold among some analysts and economists that certain U.S. institutions are too big to fail, meaning they would have to be bailed out to protect the financial system in the event of another calamity.
Two months ago, after Jamie Dimon held an emergency teleconference to fess up about a big problem with traders at the chief investment office of JPMorgan Chase & Co., he acknowledged that he had been "dead wrong" to have referred to press reports in April about the bank's London Whale fiasco as a "tempest in a teapot."
Did Jamie Dimon, the chairman and chief executive officer of JPMorgan Chase & Co. (JPM), put too much blind faith in Ina Drew, the former leader of the bank’s Chief Investment Office who was responsible for a proprietary trade that cost the firm $3 billion and counting?
For those of you who didn’t have the chance to watch Jamie Dimon’s testimony before the Senate Banking Committee this morning, here’s a quick rundown of the new details that emerged at today’s hearing about the $2 billion trading loss in JPMorgan Chase & Co.’s chief investment office:
Who are you going to believe? Jamie Dimon? Or your own eyes?
With the benefit of hindsight, anyone can see there must have been something amiss with the way JPMorgan Chase & Co. (JPM) put together some of the disclosures for its first-quarter earnings release on April 13
JPMorgan Chase & Co.’s colossal trading blunder has breathed new life into long-simmering calls to break up big U.S. banks. We agree they’ve become too concentrated, too complex and too unwieldy to effectively regulate or manage, but there are better solutions than asking bureaucrats to take them apart.
Last week when JPMorgan Chase & Co. warned investors about a $2 billion trading loss at its chief investment office, it also disclosed it had been using a faulty model to determine the unit's so-called value at risk. The story conjures up memories of a similar tale at Enron Corp. more than a decade ago.
JPMorgan Chase & Co.’s $2 billion trading loss has unleashed a whirlwind of commentary on how (and how not) to regulate the financial system. A few observations on some of the central questions that have been raised.
Last month, after Bloomberg News broke the story that JPMorgan Chase & Co. (JPM)’s chief investment office had, in essence, become a ticking time bomb, Dimon, the bank’s chief executive officer, called the press coverage “a complete tempest in a teapot.” That explanation no longer works.