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JPMorgan blames risk management for "London Whale" loss, discloses executive's departure

Jan 17 2013 Emily Flitter, Reuters

Peter Weiland, the most senior risk officer in JPMorgan Chase's Chief Investment Office before the "London Whale" scandal broke last April, quietly resigned in October, according to a report by the bank that emphasizes the CIO's risk-management failures. Weiland's resignation had not been previously reported in the media. The JPMorgan Chase & Co released reports on the trades on Wednesday, in conjunction with its fourth-quarter earnings. It cited failures in risk management inside the CIO and by JPMorgan's senior management. "CIO risk management made a number of key missteps," the report said. It added that "the firm did CIO evolved commensurately with the increased complexity and risks not ensure that the controls and oversight of CIO's activities." The CIO lost $6.2 billion when positions in a small, opaque derivatives market quickly lost value under a squeeze by several hedge funds. From the time the squeeze was first reported in April to a series of midsummer

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