2012 JPMorgan Chase trading loss
$6 billion trading loss / From Wikipedia, the free encyclopedia
Dear Wikiwand AI, let's keep it short by simply answering these key questions:
Can you list the top facts and stats about 2012 JPMorgan Chase trading loss?
Summarize this article for a 10 year old
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 JPMorgan Chase.[2][3]
This article needs additional citations for verification. (February 2016) |
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 total fines to US and UK authorities.[4][5][6] JPMorgan Chase cut chief executive Jamie Dimon's 2012 pay in half, from $23 million to $11.5 million, as a consequence for the $6 billion trading loss.[7][8]