We did this to Jon Corzine’s MF Global (links inside), so here is the damning report on JP Morgan’s “disastrous Whale trades” (as Reuters’ Ben Walsh called them in the post where I got this from), all 307 pages of them. Don’t forget the 600-page annex.
Yes, I’d also like a summary, so here is the Financial Times’ take (or check the hilarious Dealbreaker take). There are similarities to MF Global’s case in the obvious lack of internal controls and transparency after the fact, at least until the problem was too big (and public) to ignore. That said, MF Global was bigger in messiness and general stupidity before and after the “issues”.
Before you say “when will we ever learn?”, say “we’re only human” (or sing it if you’re a Billy Joel fan) and strive to 1) be as aware of your own mental traps as you can be and 2) create and ruthlessly enforce policies that mitigate such issues in your firm/ unit/ practice.
MF Global-related posts on Buysiders.com:
More on counterparty risk – Jan 29th 2012
MF Global’s many lessons – Dec 21st 2011
Disastrous decisions – Dec 11th 2011
Reckless meritocracy or overconfidence? – Nov 14th 2011
“He was from Goldman Sachs” – Nov 3rd 2011