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There’s no denying it. Wall Street has been an absolute train wreck this summer.
While summers on the Street tend to be pretty quiet, it seems like every week there was a new screw up or scandal that caught everyone’s attention.
We’ve compiled 10 examples for why this will be a summer Wall Street will want to forget.
Back in May, JPMorgan revealed a $2 billion trading loss from the 'London Whale' and as the summer progressed that number kept on growing.
On May 10th, JPMorgan Chase revealed a $2 billion dollar trading loss in the bank's Chief Investment Office in London related to derivatives trades from the so-called 'London Whale.'
And it only got worse throughout the summer.
During the month of June, the bank's CEO Jamie Dimon was grilled before the Senate Banking Committee and the House Financial Services Committee. He maintained that it was an 'isolated incident' and said 'senior management and myself should have better monitored the CIO office.'
What's more is when the bank released its Q2 earnings results on July 13th, it was revealed that the trading loss was $5.8 billion. The bank also had to restate its Q1 net income saying it was $459 less than previously reported.
Facebook was one of the most highly-anticipated initial public offerings of all time, but its debut as a publicly traded company on the Nasdaq ended up being plagued by delays and glitches.
Customers including Knight Capital, Citadel's retail facing arm and Citi claimed to have lost millions from trading shares of the social network.
What's more is Facebook shares were priced at $38 a piece and these days they're trading below $22 a share.
Reuters Alistair Barr reported that research analysts at Facebook's lead underwriters (Morgan Stanley, Goldman Sachs and JPMorgan) slashed their earnings estimates for the social network during the IPO roadshow and that information was then shared with institutional investors.
At the time, our Editor-In-Chief Henry Blodget who has more than 20 years experience in the tech IPO business, called it 'a highly unusual and negative event.'
Following the Facebook IPO fiasco, Morgan Stanley's CEO James Gorman defended his bank on CNBC saying they acted 'with great integrity.' He added that Facebook investors will just have to be a little bit patient.
The whole Lightsquared debacle wasn't the only problem for Phil Falcone this summer.
Back in June, the SEC slapped hedge fund billionaire and his Harbinger Capital Partners with fraud charges.
The SEC alleged 'that Falcone used fund assets to pay his taxes, conducted an illegal 'short squeeze' to manipulate bond prices, secretly favoured certain customers at the expense of others, and that Harbinger unlawfully bought equity securities in a public offering, after having sold short the same security during a restricted period,' according to a release.
In that statement, the SEC's director or the division of enforcement Robert Khuzami described the charges by saying they 'read like the final exam in a graduate school course in how to operate a hedge fund unlawfully.'
Falcone's attorney called the charges 'completely unsupported.'
What's more is when Daily Intel asked Falcone about the charges he responded via email 'Piece of cake,' adding, 'It's not like I'm having a heart transplant.'
Nomura's CEO Kenichi Watanabe and COO Takumi Shibata resigned from their posts at the Japan-based investment bank in July amid an insider trading scandal.
According to Bloomberg News, Watanabe bowed and apologized before reporters during a news conference accepting responsibility for the matter.
Japanese regulators had found that some of Nomura employees were giving out illicit tips on share sales in 2010 to traders who then shorted those stocks before the offerings were publicly announced, Bloomberg News reported.
On July 9th, the CEO of Iowa-based brokerage Peregrine Financial Group (PFG Best) Russell Wasendorf, Sr. was hospitalized after attempting suicide outside the firm's headquarters using a tube attached to his car's exhaust pipe.
This suicide attempt, which happened the same day the National Futures Association reported that there appeared to be a shortfall of $200 million in customer funds, ultimately set off an investigation by the CFTC and FBI into accounting irregularities at the firm.
It was later revealed that in his suicide note, Wasendorf admitted to embezzling at least $100 million from customers over the last two decades, the New York Post reported citing federal investigators. On July 13th, he was arrested and charged with making false statements.
Wasendorf was indicted by a federal grand jury on 31 counts of making false statements to regulators.
Peregrine Financial Group filed for Chapter 7 bankruptcy protection on July 10th.
A little known state regulator came out with explosive allegations against Standard Chartered accusing the bank of masking billions of dollars worth of transactions with Iran.
A technology issue at Knight Capital caused the firm to lose $440 million and it made its share price tank.
Shortly after the opening bell rang on Aug. 1, there were some wild swings in a 148 NYSE-listed stocks caused by a trading glitch at Knight Capital's market-making desk.
As a result, Knight's stock nose-dived.
Knight released a statement the following day that the company faces $440 million pre-tax loss following the glitch sending the share price even lower.
On Sunday Aug. 5, Knight was able to secure a $400 million capital infusion.
And that's not all that happened to Knight this summer. Back in May, the firm revealed that it lost $30 to 35 million on Facebook IPO trades.