Turns Out The London Whale Was Taking Risks Bigger Than The Entire Investment Bank's Risk Level


Photo: davelonsdale via flickr

The JPMorgan credit trader at centre of the multi-billion dollar trading loss, Bruno Michel Iksil (aka the “London Whale”), would take huge risks himself that were sometimes bigger than the entire investment bank’s risk taking level, Bloomberg News reported citing a source familiar with the situation. From Bloomberg (emphasis ours): 

Iksil’s value-at-risk, a measure of how much a trader might lose in one day, was typically $30 million to $40 million even before this year’s buildup, said the person, who wasn’t authorised to discuss the trades. Sometimes the figure, known as VaR, could surpass $60 million, the person said. That’s about as high as the level for the firm’s entire investment bank, which employs 26,000 people.

What’s more is these huge bets were said to be taking place as early as 2010, the report said citing unnamed sources familiar with the matter. 

One thing to note is JPMorgan restated its VaR in the Chief Investment Office for the first quarter after it announced the trading loss because it was so off.  

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