Remarkable New Details Of JPMorgan's London Whale DisasterReported by Business Insider on Friday, 18 May 2012 (on May 18, 2012)
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 Just a week after JPMorgan disclosed a multi-billion trading blunder in its chief investment office, The Wall Street Journal has two bombshell reports—one from Monica Langley and one from Dan Fitzpatrick and Julie Steinberg—that reveal in-depth details about the on-goings within the bank leading up to the disclosure of the $2 billion trading loss.
based on interviews with bank executives and insiders.
No doubt, some of the details of how the drama unfolded inside the upper echelons of JPMorgan Chase make the bank and its chief executive Jamie Dimon look bad.
Here are the key details from the two reports.
· Dimon *personally approved the trades that would lead to this multi-billion dollar blunder* in the bank's CIO office in London. However, the CEO, who had a reputation for top risk management practices, didn't monitor how those trades were executed, according to the WSJ's sources.
· When Dimon first demanded to see the specific trading positions during a meeting on April 30th he couldn't breathe and it made him feel queasy when he glanced at the specifics of the complex trades and saw the magnitude of the losses, one report said, citing sources familiar with the situation.
· What's more bank executives argued over whether or not they should immediately disclose the disastrous trading losses immediately. To Dimon's credit, he publicly disclosed the losses in a conference call on May 10 following the release of the bank's 10-Q regulatory filing.
· *Dimon initially didn't want to oust Ina Drew*, the bank's (now former) Chief Investment Officer Ina Drew, a 30-year veteran of the bank who was head of risk management. When she did announce her resignation on Monday he walked with her to the trading floor to tell everyone and even gave her a big bear hug.
· *JP Morgan didn't have a Treasurer*—a key position in charge of managing the bank's day-to-day balance sheet—in the months leading up the trading blunder. The bank's former Treasurer, Joseph Bonocore left the bank in October in a move that was not made public. His replacement, Sadie O'Connor, was announced in early March.
· The* CIO's chief risk officer, Irvin Goldman, did not have a lot of risk management experience when he took the helm in 2010*. Furthermore, he also happens to be the brother-in-law of JP Morgan's head of corporate regulatory affairs Barry Zubrow. Goldman was recently demoted when the new CIO Matt Zames took over.
*SEE ALSO: Now We Know Why The FBI Is Investigating JP Morgan*
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