The London Whale

‘Justice’ Prevails in JPMorgan ‘London Whale’ Case

SOURCE: https://www.financialish.com/article/justice-prevails-in-jpmorgan-london-whale-case


"Whales" Explained in One Minute: 


Well-Funded Investors/Traders 

Like JPMorgan Chase's "London Whale"


SOURCE: https://www.youtube.com/watch?v=qiDVNUFm7J4

J.P. Morgan's $2B Trading Loss: Too Big to Manage?


SOURCE: https://www.youtube.com/watch?v=F_MOJtQD24g

QuickTake

The London Whale

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Updated on 

SOURCE: https://www.bloomberg.com/quicktake/the-london-whale

2012 JPMorgan Chase trading loss

In April and May 2012, large trading losses occurred at JPMorgan's Chief Investment Office, based on transactions booked through its London branch. The unit was run by Chief Investment Officer Ina Drew, who later stepped down. A series of derivative transactions involving credit default swaps (CDS) were entered, reportedly as part of the bank's "hedging" strategy.[1] Trader Bruno Iksil, nicknamed the London Whale, accumulated outsized CDS positions in the market. An estimated trading loss of $2 billion was announced. However, the loss amounted to more than $6 billion for JP Morgan Chase.[2][3]

These events gave rise to a number of investigations to examine the firm's risk management systems and internal controls. JPMorgan Chase agreed to pay $920 million in fines.[4][5][6] JPMorgan Chase cut chief executive Jamie Dimon's 2012 pay in half, to $11.5 million from $23 million, due to the $6 billion trading loss.[7][8][9]

SOURCE: https://en.wikipedia.org/wiki/2012_JPMorgan_Chase_trading_loss

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