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.

Bloomberg Exclusives

Harrison Says Public Overreacted to JPMorgan’s CIO Trading Loss

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 Appoints Ex-KPMG Chairman Tim Flynn to Risk Panel

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.
Jiang’s $310,000 at ICBC Compares to Dimon’s $23 Million

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 Leaderless in Rules Fight as Dimon Diminished

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 Leads Funds Avoiding ’Dead Money’ in JPMorgan Stake

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.
JPMorgan Trading-Loss Days Most Since Financial Crisis

JPMorgan Chase & Co. posted more unprofitable trading days than any quarter since the depth of the financial crisis as the largest U.S. bank struggled to unwind credit-derivatives bets.

Bloomberg Opinion

Big Banks Are Hazardous to U.S. Financial Health

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.
Is JPMorgan Chase Out of Controls?

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."
Hit Bankers Where It Really Hurts, in Their Bank Accounts

If your plumber failed to fix a leaky faucet, you would probably want your money back. The same rule should apply to executive pay.
Dimon in DC Preserves Wall Street’s Black Box

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?
Congress Didn't Ask, and Jamie Dimon Didn't Tell

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:
Five Questions for Jamie Dimon

Jamie Dimon’s appearance on Capitol Hill today is a sad occasion: A top bank executive explaining how his company’s bets went bad while lawmakers grasp for ways to fix the system.
Is Dodd-Frank a Dud?

Next month marks the two-year anniversary of the Dodd-Frank law, ushered in with great fanfare and the tantalizing promise of preventing another financial crisis.
Banks’ Hyper-Hedging Adds to Risk of a Market Meltdown

JPMorgan (JPM) Chase & Co.’s lost billions remind us that modern finance has changed the world, and not in ways that we should celebrate. Nothing demonstrates this more than the use of hedging.
JPMorgan Makes Groupon’s Disclosures Look Good

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’s Blunder Doesn’t Mean U.S. Should Bust Up Banks

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.
How JPMorgan Is Like Enron

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.
Editors: Ignore Myths and Half-Truths of JPMorgan's Trading Losses

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.
Jonathan Weil: What Jamie Dimon Doesn’t Know Is Plain Scary

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.