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Lessons From the London Whale
Keywords:
The 129 page internal report on what caused the trading losses of $6 billion at the London based investment unit of JP Morgan Chase bank. The report shows the trading was intended to offset losses of $100 million. Instead the trading assumed large proportions and supervisors ignored the risks, management showed lax oversight. This type of situation occurs in other industries. The costcutting at BP and suppliers resulting in the Gulf Oil Spill and the Toyota costcutting saved small amounts by creating large risks that threatened the companies, with bankruptcy in BP's case and loss of confidence of the customer base in Toyota's case. They also reflected years of costcutting that were showing up in smaller problems that remained unrecognized. BP refinery fires occurred for lack of adequate maintenance. Problems were already developing at JP Morgan Chase with managment changes at the London unit leading to poor oversight and complacency of top management, a culture that took undue risks even as management remained confident in its strategies.
JP Morgan Chase, Toyota and BP- huge risks for modest gains in offsetting losses or costcutting
06/11/2010
A comparison of three corporations and their failure to recognize risks generated from culture, strategy and complacency of top management. The situation that prevailed in different industries and cultures in 2010-2012- in the UK-U.S., in the UK, and in Japan, for the financial industry, oil industry and auto industry. Also relevant is the evolution of technologies and complexity and how carefully it is managed throughout the chain including suppliers or locations in other countries. Complex automotive technologies and complex deep sea exploration technology, the involvement of suppliers, and the complex financial market credit default swaps, needed a careful approach from top managment not relying on individuals alone.
Grouped Articles
Wall Street Journal 05/04/2013
Regulatory Headaches Worsen for J.P. Morgan
Wall Street Journal 08/19/2013
Embattled J.P. Morgan Bulks Up Oversight
Wall Street Journal 09/13/2013
JP Morgan Reported Third Quarter Loss on Legal Costs
New York Times 10/11/2013
Record Pact Is on the Table, But J.P. Morgan Faces Fight
Wall Street Journal 10/21/2013
Recipes for Ruin, in the Gulf or on Wall Street
New York Times 06/11/2010
JP Morgan Chase and the London Whale
04/10/2012
Trader Iksil at the CIO offices in London and the huge positions he had taken which were likely to lead to losses. Chase's denial that this was anything unusual.
Grouped Articles
Regulatory Headaches Worsen for J.P. Morgan
Wall Street Journal 08/19/2013
'London Whale' Penalties Put at $500 Million to $600 Million
Wall Street Journal 08/28/2013
Embattled J.P. Morgan Bulks Up Oversight
Wall Street Journal 09/13/2013
New York Times 10/15/2013
J.P. Morgan Reaches $13 Billion Tentative Deal with Justice Department
Wall Street Journal 10/20/2013
Record Pact Is on the Table, But J.P. Morgan Faces Fight
Wall Street Journal 10/21/2013
Letters to the Editors of the Wall Street Journal on the trading losses at JP Morgan Chase, the Volcker Rule and Glass-Steagall repeal
04/10/2009
Losses at Societe Generale by a single trader with losses over $7 billion in 2010, followed by a novice traders loss of $2 billion at UBS in 2011, and the ongoing loss at Chase of $2 billion in 2012, point to the dangers facing the banking systems in Europe and the U.S. without adequate regulatory oversight over risktaking by banks.
Grouped Articles
Volcker Rule to Curb Bank Trading Proves Hard to Write
Wall Street Journal 09/10/2013
The Volcker Rule on Bank Risks Approaches Its Final Edits
New York Times 12/03/2013
New York Times 04/10/2009
The Lessons of JPMorgan's Trading Loss
New York Times 05/14/2012
Hedge or Bet? Parsing the J.P. Morgan Trade
Wall Street Journal 05/16/2012
Wall Street Journal 05/18/2012
Risk management at JP Morgan Chase
05/14/2012
Grouped Articles
Wall Street Journal 05/04/2013
Regulatory Headaches Worsen for J.P. Morgan
Wall Street Journal 08/19/2013
Embattled J.P. Morgan Bulks Up Oversight
Wall Street Journal 09/13/2013
JP Morgan Reported Third Quarter Loss on Legal Costs
New York Times 10/11/2013
Red Flags said to Go Unheeded at Chase
New York Times 05/14/2012
The Lessons of JPMorgan's Trading Loss
New York Times 05/14/2012
Lessons from the Toyota recalls and the pedal acceleration case
03/01/2010
Federal investigations concluded in Feb 2011 by NHTSA and NASA in the US show "pedal misapplications," not faulty electronics as the main culprit behind the unintended acceleration So what went wrong for Toyota. It was the lack of an open and fast response that hurt Toyota, and the need for humility with fast growth because even floor mats and driving behaviours have to be treated with respect where safety is the issue.
Grouped Articles
Detroit News 03/01/2010
Toyoda Rues Excessive Profit Focus
Wall Street Journal 03/02/2010
Inside Toyota, Executives Trade Blame Over Debacle
Wall Street Journal 04/13/2010
Toyota Nears $1 Billion Deal to End Probe
Wall Street Journal 02/08/2014
Obama Names Fatigue Specialist to Lead Traffic Safety Agency
New York Times 11/19/2014
Federal Auditor Finds Broad Failures at N.H.T.S.A.
New York Times 06/19/2015
Toyota's $1.1 billion class-action lawsuit legal settlement in 2012 for unintended pedal acceleration
12/26/2012
Grouped Articles
Toyota Nears $1 Billion Deal to End Probe
Wall Street Journal 02/08/2014
Toyota Agrees to $1.1 Billion Settlement
Wall Street Journal 12/26/2012
New York Times 01/19/2013
Management failure at Toyota in addressing quality and safety issues- the Recall period 2009-2011
01/29/2010
Toyota's own documents reveal that managers touted the $100 million savings in limiting the degree to which Toyota would address the quality and safety issues raised by unintended acceleration and failure in braking. Toyota had hired former National Highway Traffic and Safety officials and was able to limit what it had to do to address the problem. In the end the problems would cost billions of dollars in a massive recall effort and dent its image.
Grouped Articles
Toyoda Rues Excessive Profit Focus
Wall Street Journal 03/02/2010
Inside Toyota, Executives Trade Blame Over Debacle
Wall Street Journal 04/13/2010
Toyota Nears $1 Billion Deal to End Probe
Wall Street Journal 02/08/2014
Toyota to Resume Plant Building After Three-Year Hiatus
Wall Street Journal 04/04/2015
Toyota’s Top Executive Under Rising Pressure
New York Times 02/06/2010
Akio Toyoda - Toyota's plan to repair its public image
Washington Post 02/09/2010
A potential BP bankruptcy after the Deepwater Horizon rig Gulf oil spill
07/09/2010
The impact of large liability claims creates the possibility of bankruptcy.
Grouped Articles
BP Agrees to Pay $18.7 Billion to Settle Deepwater Horizon Oil Spill Claims
Wall Street Journal 07/03/2015
BP Faces Up to $13.7 Billion in Fines in Deepwater Gulf Spill Case
Wall Street Journal 07/03/2015
Weighing the Possibility of Bankruptcy for BP
New York Times 07/09/2010
BP May Avoid Gross Negligence Conviction Over Gulf Oil Spill
Wall Street Journal 09/14/2011
Closing the Gulf in BP's Valuation
Wall Street Journal 09/15/2011
BP Shortcuts Led to Gulf Oil Spill, Report Says
New York Times 09/14/2011
BP's actions on safety one year after the Gulf Oil Spill
06/29/2010
Grouped Articles
As CEO Hayward Remade BP, Safety, Cost Drives Clashed
Wall Street Journal 06/29/2010
The Lessons of Deepwater Horizon
Wall Street Journal 04/20/2011
Wall Street Journal 07/31/2012
BP Posts Unexpectedly Large Loss
New York Times 07/31/2012
BP Profit Tumbles on Write-Downs
Wall Street Journal 08/01/2012
After Spill, Gulf Oil Drilling Rebounds
Wall Street Journal 09/20/2012
Impact of Deepwater Horizon rig oil spill in Gulf of Mexico on BP.
04/29/2010
Costs to BP. Origins of the problem. Public opinion in the USA.
Grouped Articles
At BP, There’s Optimism in the Corner Office
New York Times 01/24/2014
Oil Rigs’ Biggest Risk: Human Error
Wall Street Journal 04/20/2015
BP Faces Up to $13.7 Billion in Fines in Deepwater Gulf Spill Case
Wall Street Journal 07/03/2015
Oil Spillâs Blow to BPâs Image May Eclipse Costs
New York Times 04/29/2010
Officials Assail Oil Company Over Response to Gulf Spill
New York Times 04/30/2010
Wall Street Journal 05/01/2010
A behind the scenes account of JP Morgan Chase CEO Jamie Dimon's discovery and response to large losses
01/15/2010
Dimon's first encounter with the losses at the bank was through an account of Chief Investment Office trader Iksil's trades in the Wall Street Journal on April 6, 2012. The trader was referred to as the "London Whale" and large losses were mentioned. This has raised questions about whether banks of the size of JP Morgan can even be effectively managed by a CEO. The decision by the U.S. Federal Reserve, Treasury and regulators to encourage the merger of failed financial firms Bear Stearns and Washington Mutual with JP Morgan Chase- ostensibly because no mechanism to wind down such firms existed- not only created a mega bank but also created additional risks from banks too big to manage.
Grouped Articles
Wall Street Journal 05/04/2013
'London Whale' Penalties Put at $500 Million to $600 Million
Wall Street Journal 08/28/2013
Embattled J.P. Morgan Bulks Up Oversight
Wall Street Journal 09/13/2013
Dimon Vows to Fix JP Morgan's Compliance Problems
New York Times 09/17/2013
New York Times 10/15/2013
J.P. Morgan Reaches $13 Billion Tentative Deal with Justice Department
Wall Street Journal 10/20/2013
JP Morgan Chase bank's exposure in Europe, hedges and potential losses with a bad outcome
05/18/2012
Potential losses in the event of unanticipated outcomes in Greece, Ireland, Portugal, Spain and Italy.
Grouped Articles
Peering Over J.P. Morgan's Hedges
Wall Street Journal 05/18/2012
Ina Drew, Jamie Dimon and JPMorgan Chaseâs $6 Billion Mistake
New York Times 10/03/2012
Wall Street Journal 10/13/2012
New York Times 01/19/2013
JP Morgan Chase debt portfolio and asset allocation decisions similiar to proprietary trading
05/13/2012
Large shift in asset allocation since 2006, with significantly higher corporate bond holdings, creates more risk.
Grouped Articles
Embattled J.P. Morgan Bulks Up Oversight
Wall Street Journal 09/13/2013
At JPM: James and the Giant Reach
Wall Street Journal 05/13/2012
'London Whale' Rattles Debt Market
Wall Street Journal 05/13/2012
JPMorgan Chase Executive to Resign in Trading Debacle
New York Times 05/13/2012
Dimon's Fixer Is Trusted Veteran
Wall Street Journal 05/15/2012
Hedge or Bet? Parsing the J.P. Morgan Trade
Wall Street Journal 05/16/2012
JP Morgan Chase bank management
05/15/2012
Grouped Articles
J.P. Morgan Faces Another Big Exit
Wall Street Journal 04/28/2013
Wall Street Journal 05/04/2013
A Call for New Blood on the JPMorgan Board
New York Times 05/05/2013
For Dimon, Now Is Time for Renewal
Wall Street Journal 05/27/2013
Embattled J.P. Morgan Bulks Up Oversight
Wall Street Journal 09/13/2013
JP Morgan Reported Third Quarter Loss on Legal Costs
New York Times 10/11/2013
Toyota quality is being questioned in 2009.
11/18/2009
A recall for safety and reliability of a critical part- gas pedals that get stuck on floor mats- after initally denying that any problem exists. Four million pedals to be replaced. Its hard to turn off the car with the Toyota style ignition system. The recall affects the Camry, and other models.
Grouped Articles
Toyota Bid for Cool May Leave Buyers Cold
Wall Street Journal 12/01/2011
Detroit News 03/01/2010
Japanese Autos Lose Ground in Consumer Reportsâ Reliability Ratings
New York Times 10/28/2013
Toyota Will Fix or Replace 4 Million Accelerator Pedals
New York Times 11/26/2009
Experts point to throttle not floor mats in Toyota accidents.
Detroit News 11/29/2009
Toyota Gets Stuck in a Pair of Ruts
BusinessWeek 11/18/2009
Toyota strategy in the pre-Akio Toyoda period.
05/12/2005
How Toyota strategy was shaped in the pre-Akio Toyoda period, under Watanabe and his team.
Grouped Articles
Toyoda Rues Excessive Profit Focus
Wall Street Journal 03/02/2010
Eiji Toyoda, Promoter of the Toyota Way and Engineer of Its Growth, Dies at 100
New York Times 09/17/2013
Wall Street Journal 02/13/2006
Toyota Tacoma: A Rugged Winner
BusinessWeek 04/05/2006
How Slumping Market for SUVs Is Hurting Detroit's Bottom Line
Wall Street Journal 05/13/2005
For Toyota, a New Small Truck Carries Hopes for Topping GM
Wall Street Journal 05/12/2005
Report of the Commission on the BP Deepwater Horizon rig Gulf oil spill
06/05/2010
Grouped Articles
In Gulf, It Was Unclear Who Was in Charge of Rig
New York Times 06/05/2010
Recipes for Ruin, in the Gulf or on Wall Street
New York Times 06/11/2010
Chinese Walls, Pocked With Peepholes
New York Times 06/11/2010
Oil Executives Try to Explain Differences From BP
New York Times 06/15/2010
At BP, a History of Boldness and Costly Blunders
New York Times 07/12/2010
Oil Rigs’ Biggest Risk: Human Error
Wall Street Journal 04/20/2015
BP's $4.5 billion legal settlement with the U.S. Justice Department on the Deepwater Horizon rig Gulf oil spill
11/15/2012
The Justice Department took a different approach to the settlement by indicting three BP managers for improper conduct during the Gulf Oil Spill. This was meant to act as a deterrent to other company managers in such situations. BP's oil spill fund and legal liabilities.
Grouped Articles
BP Says Spill Fund Is Running on Fumes
Wall Street Journal 07/30/2013
New York Times 09/29/2014
BP Agrees to Pay $18.7 Billion to Settle Deepwater Horizon Oil Spill Claims
Wall Street Journal 07/03/2015
BP Faces Up to $13.7 Billion in Fines in Deepwater Gulf Spill Case
Wall Street Journal 07/03/2015
BP to Pay $18.7 Billion for Deepwater Horizon Oil Spill
New York Times 07/02/2015
BP Results Still Hurt by Gulf Spill B1
Wall Street Journal 04/28/2016
Transocean, BP and the Gulf Oil Spill
06/30/2011
Grouped Articles
Transocean Swings to a Loss on $881 Million in Charges
Wall Street Journal 05/08/2015
Transocean: No Apologies Over Gulf Oil Spill
BusinessWeek 06/30/2011
Halliburton: BP Hid Gulf Disaster Details
Wall Street Journal 09/03/2011
Wall Street Journal 01/30/2012
Deepwater Horizon Owner Settles With U.S. Over Oil Spill in Gulf of Mexico
New York Times 01/03/2013
New York Times 01/19/2013
Halliburton and the BP Oil Spill
10/28/2010
Grouped Articles
Contractor Accused of Flawed Job on Rig
Wall Street Journal 10/29/2010
Halliburton and BP Knew of Cement Flaws, Report Says
New York Times 10/28/2010
Halliburton in Spotlight Over BP Gulf Spill
New York Times 10/28/2010
Halliburton Emerges From Gulf Disaster Unscathed
Wall Street Journal 04/19/2011
Halliburton: BP Hid Gulf Disaster Details
Wall Street Journal 09/03/2011
Closing the Gulf in BP's Valuation
Wall Street Journal 09/15/2011
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