A mixture of accounting moves and rosy assumptions appear to have masked JPMorgan's London Whale.
FORTUNE -- Here is perhaps the most amazing thing about JPMorgan Chase's (JPM) $5.8 billion trading loss: Take a look at the firm's overall results, and it's like the London Whale's misstep, one of the largest flubs in the history of Wall Street, never happened.
Back in mid-April, about two weeks before talk of the trading losses MOREStephen Gandel, senior editor - Jul 13, 2012 1:08 PM ET
JPMorgan has a lot of leeway when reporting its recent trading losses.
Fortune -- JPMorgan Chase (JPM) could be headed for the tub. Some are wondering if the bank could take a so-called big bath - an accounting term for exaggerating losses in order to benefit later - on the London Whale's trading red ink.
Jamie Dimon is testifying in front of Congress again on Tuesday, this time for the House Financial MOREStephen Gandel, senior editor - Jun 19, 2012 10:52 AM ET
JPMorgan Chase's London Whale should finally sink the notion that the market for bond insurance works.
Fortune -- In finance, there should be a three-strikes-and-you're-out rule. If there were, credit default swaps would be headed for the graveyard.
Indeed, when JPMorgan Chase (JPM) announced its $2 billion and counting trading loss a month ago, there seemed to be little explanation of what exactly credit default swaps, the financial contracts the London Whale MOREStephen Gandel, senior editor - Jun 18, 2012 4:59 PM ET
JPMorgan Chase's CEO says his bank's hedges are safe.
Fortune -- In banking, it appears, the model is always risk on.
In Congressional testimony on Wednesday JPMorgan Chase's CEO Jamie Dimon spent a lot of time trying to prove to members of the Senate Banking Committee that the bulk of what his bank does - London Whale aside - is prudent. He said he believes in stress testing. And that he has MOREStephen Gandel, senior editor - Jun 13, 2012 3:45 PM ET
JPMorgan diverted more of its cash into "hedges" at a time when the bank was doing less and less lending.
Fortune -- It's time for Jamie Dimon to give up the hedging excuse. No one is going to believe it for much longer.
On Wednesday, Dimon, CEO of JPMorgan Chase (JPM), will testify in front of the Senate Banking Committee. It's Dimon's first trip to Capitol Hill - he's scheduled to return MOREStephen Gandel, senior editor - Jun 13, 2012 6:00 AM ET
Jamie Dimon needs to take a cue from J.P. Morgan's trading debacle and divide the banking giant into manageable pieces.
By Sheila Bair, contributor
FORTUNE – When I was a child, my sister and I loved watching the goings-on at a chicken farm near my grandmother's house in rural Kansas. Chickens are interesting social animals, resembling, somewhat, the way we in Washington interact with one another. They were always on the MOREMay 25, 2012 5:00 AM ET
At the heart of JPMorgan's $2 billion whale of a trading loss was a deeply flawed belief.
FORTUNE -- If you want to understand the ill-fated trade that has cost JPMorgan Chase (JPM) more than $2 billion and counting, all you really need to understand are three words: Negative carry trade. And what you need to understand about those three words is that they are dirty - really, really dirty.
In general, MOREStephen Gandel, senior editor - May 15, 2012 6:01 AM ET
Sure, blame JP Morgan's traders. But don't forget what motivated them to take on extra risk -- the Federal Reserve's low interest rate policy has left banks scrambling to make up for lost income on loans.
By Cyrus Sanati
FORTUNE -- Who is to blame for JP Morgan's growing multi-billion dollar trading loss? While it is easy to just fire and demonize the traders and managers who executed the trades, as MOREMay 14, 2012 10:52 AM ET
The bank's bad bet could curtail profits for years to come.
Update May 13, 11:00 PM
FORTUNE -- For years, JPMorgan Chase (JPM), perhaps the riskiest bank in the world, got a pass. Sure there were minor hiccups along the way. But basically investors had the attitude with the bank run by Jamie Dimon that they were going to be hands off. Sub-prime mortgage loans: You've proved you can handle them. Foreclosure MOREStephen Gandel, senior editor - May 11, 2012 2:02 PM ET
Bash JPMorgan all you like, and feel free to snicker at the spectacle of Jamie Dimon losing his swagger. But don't confuse Morgan's mess-up with the supposed need for the Volcker Rule. By Allan SloanAllan Sloan, senior editor-at-large - May 11, 2012 1:13 PM ET
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