"JPMorgan traders didn’t know the risks: CEO" By Agence France-Presse at The Raw Story

[applegrove]

JPMorgan traders didn’t know the risks: CEO

By Agence France-Presse at The Raw Story

http://www.rawstory.com/rs/2012/06/19/jpmorgan-traders-didnt-know-the-risks-ceo/

"SNIP....................................................

Dimon returned to Capitol Hill for the second time in a week to explain the loss by JPMorgan’s London-based Chief Investment Office (CIO), acknowledging that the bank’s trading strategy was “poorly conceived and vetted.”

“The strategy was not carefully analyzed or subjected to rigorous stress testing within CIO and was not reviewed outside CIO,” Dimon told a House Finance Committee hearing.

“In hindsight, CIO’s traders did not have the requisite understanding of the risks they took.”

Dimon was building on his earlier comments before a Senate hearing when he acknowledged the bank’s poor judgment and apologized for the losses, but argued it was an “isolated event” dwarfed by the bank’s huge capital cushion.


......................................................SNIP"

[applegrove]

1. If they don't know what they are doing...they should not be dealing in derivatives.

They are drunk with their algorhythms and the possibility of a new bubble (and betting for and/or against it). Nothing matters but numerous transactions. How they get paid. Happened in the housing bubble too.