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Beaching the London Whale

  • Elise J. Bean
Chapter

Abstract

This chapter exposes how JPMorgan Chase engaged in high-stakes credit derivatives trading, lost billions of dollars, and then tried to blame the losses on a single trader dubbed the London Whale. It describes the Levin-led inquiry that opened a window onto the bank’s hidden world of high-risk derivatives trading and exposed a JPMorgan derivatives trading culture that piled on risk, misstated derivative values, disregarded risk limits, manipulated risk assessment models, and hid losses. The chapter also recounts the role of JPMorgan CEO Jamie Dimon in the facts and investigation, and explains how the London whale fiasco led to new regulatory safeguards and enforcement actions.

Copyright information

© The Author(s) 2018

Authors and Affiliations

  • Elise J. Bean
    • 1
  1. 1.Levin Center at Wayne LawWayne State University Law SchoolDetroitUSA

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