JPMorgan $2B Trading Loss Roils Markets, Raises Fears about Bank Risks
A single simple mistake, or even a clever decision, has reverberating circumstances or gains in any business. JP Morgan is one of the largest banks in the US, and it found itself loosing more than $2 billion when a mistake in its investment office in London was committed. According to this article, big organizations, especially in the finance industry are regulated by the treasury against taking great risks because they are too big to loose(ABC News, 2012). This means that a loss by such a company like the JP Morgan would affect the economy of the nation. It is clear from this article that sometimes when the times are hard for these gigantic financial institutions, they take hedging as their bail and for sustenance of the financial status. The same thing happened with JP Morgan, but this time they did it with the wrong timing and following the wrong procedure. A critical analysis of this matter should warn investors that a good decision could backfire on a project depending on the timing of the decision.
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