...The London Whale Scandal BU486-B : Accounting Information Systems and Computer Audit & Controls Kevin G. Bullock Wilfrid Laurier University Alexander Brik - 110882860 Aman Smagh – 110257570 Jack Welton – 100791540 Zaid Iqbal – 110184970 Synopsis of the Case In April and May of 2012, JP Morgan Chase & Co. incurred major trading losses of $6 billion dollars. However, JPMorgan’s financial statements represented these losses as only $2 billion. The losses were the result of risky bets taken in the credit markets by a trader named Bruno Iksil. Iksil worked at JP Morgan’s London office, and made extremely large trades in the credit markets. Because of this, Iksil earned the nickname “London Whale,” and this entire scandal is referred to as the “London Whale Scandal.” In the worlds of finance and gambling, whales are people who “play” with very large sums of money. This debacle started in JP Morgan’s Chief Investment Office (CIO), in the London branch of the firm. CIO’s are central to any major bank. Their purpose is to invest the difference between deposits the bank has on hand from its customers and the credit lent out to borrowers. This difference is called the bank’s reserves. With $1.1 billion in deposits and $750 billion on loan, JP Morgan’s CIO handled assets in excess of $350 billion. In theory, CIO’s are supposed to keep the reserves safe and to protect them against inflation. However, in reality, most CIOs will enter into more risky investments in order...
Words: 1965 - Pages: 8
...The Logic of JPMorgan Chase Whale Trades The main purpose of this report is to expose the findings and misconduct of disclosing important information of the JPMorgan Chase Whale Trades. This report explicitly details the negligence by the Chief Investment Office in misleading the Office of the Comptroller of Currency of their Synthetic Credit Portfolio. The author’s intention is to inform what went wrong with the trading in the derivatives market by JPMorgan Chase. The key question the author is addressing is why the CIO deviated from their standard midpoint markings to later assigning more favorable prices. Also, the author is addressing why the OCC was unaware of the losses and the risk associated with the SCP. The most important information in this article is the deceptive actions committed by the CIO in the London Whale Trades. It became apparent that senior managers downplayed the problems of the SCP and kept describing the portfolio as a risk-reducing hedge, when in actuality it was a massive portfolio losing billions of dollars and had stopped providing credit loss protection to the bank. The whale trades shows how financial institutions engage in high risk trading activities with federally insure deposits and attempted to divert attention from these synthetic derivatives. The main conclusion s in this article is a combination of poorly executed hedging decisions by the CIO of JPMorgan Chase in their SCP. The CIO failed to alert its regulators of their actions...
Words: 858 - Pages: 4
...IRAC Brief: JP Morgan Chase Settles the London Whale This is a case study analysis of a current legal case regarding the governance principles of regulatory compliance and the methods used to manage risk arising. The briefing of this case will utilize the IRAC method of case analysis to give a breakdown on the case of JP Morgan Chase on regulatory violations and risk management. The IRAC method will address I - Issue, R - Rule, A - Analysis, and C - Conclusion which will provide a researched assessment of the trading loss violations on this case. Please read and review this analysis of the case utilizing IRAC method of case analysis. Issue JP Morgan Chase permitted traders in its London office to allocate magnified values to transactions and cover up huge losses as they continued to explode. Two traders could face criminal charges for fabricating records to cover up losses. JP Morgan’s charge to the $6 billion oversight in trading loss is the first for a main company since the Securities and Exchange Commission revised its practice of letting firms pay fines without admitting fault. An admission by JPMorgan could provide a pattern for pursuing other admissions in Wall Street cases. The Justice Department is aggressive in getting JPMorgan to admit that from 2005 to 2007, it sold mortgage securities to investors without fully warning of the risks. By wanting the bank to admit some responsibility, officials hope it will caution other corporations to double check before taking...
Words: 880 - Pages: 4
...Table of Contents Table of Contents Table of Contents… 1-2 Introduction… 3-4 Part I: Evolutionary History… 5 * Pakicetus… 5-7 * Ambulocetuss… 7-8 * Rodhocetus… 8-9 * Basilosaurus and Dorundontidae… 9-10 * Kentriodontidae… 10-11 Part II: Evolutionary Biology, Ecology, and Behavior… 11 * What is a Dolphin?... 11 * General Anatomy… 11-12 * Integumentary, Sensory and Urinary systems… 12-18 * Musculoskeletal system and Locomotion…...
Words: 6446 - Pages: 26
...文勇的新托福精选阅读（原黄金29篇）真题[2010年4月3日 5.8版本] 俺常常收到同学们的邮件，要我推荐各种各样阅读材料,问我iBT的复习资料中 Barron, Longman, Delta等等哪个更好。我其实很无奈---因为尽管这些机构很大牌,但大牌丝毫都不意味着文章“质量高”(比如你可以想想三鹿奶粉)---说这些机构的文章质量不高,并不是说文字写得不好,而是说这些文章的句子结构, 论述方式, 出题思路与ETS的并不一致(有时候甚至大相径庭)：用这样的材料训练，实在是 事倍功半。 于是，我们实在应该去找找由ETS出的iBT文章来做：（我们能够找到的|由ETS编纂的标准iBT文章有） 1. OG[1]之中的13篇文章[2]；（其中3篇为第三版OG之中的文章） 2. 13次（套）TPO[3]之中的3*13=39篇文章[4]； 3. 早期[5]报名之时ETS赠送的3篇在线测试题 4. ETS官方给出的模考软件之中抽出的1篇文章； 于是这个文档在我的一时兴起之下，出现了： OG拿在手上，可以一个个字的敲成电子版；TPO的所有考试都是在自己的计算机进行，于是可以一边花钱参加考试,一边截图与录像---再利用截下来的图片，逐个的敲下来；早期的ETS赠送的3篇在线测试题，我也恰好有电子版本；官方的模考软件稍微用点功夫，就能将文章提取并复制出来。虽然工作有些繁杂，但总算完成了所有文章的敲打工作。再花了些时间，把这53篇文章都做了答案，附在文章的后面。（由于TPO之中有3篇文章与OG中完全重复,于是减去3篇,只剩下53篇。）同时我还更正了OG上几个明显的错误（详见文后附录）当然，我还做出了方便大家理解文章的参考译文，附在文章的后面。 在这53篇由ETS出的文章没有做完之前，我们实在不应该花时间在任何其他的题目之上。我有时候甚至会对着我的弟兄们高呼：“没有把这53篇做３遍，你好意思上考场么？你好意思花钱在任何一本垃圾书上面么？[6]” 另外，如果你正在准备iBT-SAT-GRE的作文部分或者写留学文书，也应该仔细的琢磨一下这些文章：经过ETS打磨的文章，无一不是精妙绝伦，极具模仿价值。常常有同学拜托我帮她（他）写PS，也说起自己的句子怎么看都像是小学生写的（尽管用上了GRE里面的单词），于是会随口问我“勇哥，您的写作能力是怎么训练出来的。”我说，“看呗，看呗：托福文章看多了，写作能力自然就提高了。” “这ETS的这些文章真的那么好？”。每当听到这个问题，我都会装做赵本山的样子来一句“谁用谁知道～～” 文勇 欢迎进行未删节的转载|且不必告诉我你转载到哪里去|都是一个战壕里面的弟兄啊… 告诉大家一个好消息，本文档中的TPO1-TPO9，以及在线测试题和官方模考题目的解析已经在市面上可以买到了！（好吧，我承认以下显然是广告部分）： 这本《托福真题详解-阅读分卷-第一册》是给弟兄们现在市面上可以获得的TPO1-TPO9阅读部分的文章解析，题目解析，中文翻译和每篇文章的必备词汇：文章解析是为了让大家养成从整体抓文章结构的感觉，题目解析是为了使大家能够在做完题之后知道正确选项为什么对，错误选项为什么错——并且因此来培养良好的做题思路，中文翻译是为了帮助大家扫除那些自以为理解对但实际理解有误的句子，在每篇文章后面配上必备词汇无非是为了节省大家的一些查单词而已。 另外，这本书还包含了一张CD（我想你可能第一次听说阅读书...
Words: 138860 - Pages: 556
...Seven of the hurdles that need to be examined, in a management sense, are: 1. Cost overruns How much will they actually be and who will pay for them? Past experience says there will be cost overruns; moreover, many of those extra costs are often hidden from the public by being shifted to other budgets. Infrastructure costs are but one example of this. It is important that a tight rein on costs be initiated from the outset and that oversight be put in place. Scrutiny of estimates and the awarding of contracts by outsiders are essential. Another aspect of the issues in this area is determining how to ensure transparency. 2. The future use of sporting venues Using these venues once the games end can pose many problems; for example, some are so large that they will have to be reduced in size if they are to be profitable. Others are specific to sports that may attract little attention. There is a history of Olympic ‘white elephants’ that stand empty for years. Can someone find a way to move these elephants toward social benefit or commercial profit? 3. Transformation of Olympic housing to public housing Questions abound. What planning needs to be done to ensure that the housing constructed for the athletes actually will be used as mixed or affordable housing after the events? Will the housing for the athletes who participate in the Paralympics be set aside as housing for the elderly and disabled? What will be done with the massive cafeterias set up to feed those involved in the...
Words: 696 - Pages: 3
...good performance at Heathrow drives good performance across the network, BA delivered its highest ever network-wide Ready to Go performance of 53 per cent. This translated into record levels of flights departing on time and within 15 minutes, as well as record levels of customer satisfaction with punctuality. (BA Annual Report 08/09) BA potential future strategy for the organization to grow its position in international and global markets: The study of BA various functions and practices as an organization from the strategic perspective it can be stated that British Airways prioritize its major functions, or in another words the resources that would help them to increase revenues are given due consideration, like the 2012 Olympics in London. Prioritization involves focusing on the particulars that really matters. For that reason it is crucial to prioritize things so that the company may not lose focus on issues that need urgent attention. For a business to be flourishing it is important that it must be able to decide what resource should be devoted and what not (Bailey and Johnson, 1995). The decision on what is important is key to prioritization. The...
Words: 758 - Pages: 4
...Analyse how the impacts of the Notting Hill Carnival could be measured. What methods could have been used to measure the impacts of similar events and what are the issues surrounding those methods? In 2003, a London Development Agency (LDA 2003) report into the Notting Hill Carnival found that ‘it brought in an estimated income of £93 million into London in 2002, supporting in the region of 3000 full time equivalent jobs. The study and review of other aspects of the carnival lead to increased attention from the Mayor of London and other stakeholders (1) which lead to the Notting Hill Carnival ‘Strategic Review’ in 2004. The report states that ‘the true value of the Notting Hill Carnival, in social, economic and cultural terms, has received little recognition in the past’. (2) But how can the Notting Hill Carnival be more accurately measured? Economic: The review highlights a number of economic impacts of the Carnival, with various statistics available. However, these stats focus heavily on the immediate economic impact, and do consider the costs for the negative impact of the event; policing, traffic, pollution. As highlighted by Getz 2012, the economic impacts should include a ‘comprehensive evaluation of the costs and benefits of the event’. (3) Environmental: Environment impacts have been measured in the past through the amount of waste generated. (4) Future environmental impact studies could include the measurement and tracking of the reduction of the carbon...
Words: 483 - Pages: 2
...Marie Berwa Address: 76, Wandle Way, London, SW18 4UL Tel: 020 8871 2731 Mob: 07903077681 E-Mail: Marie.Renee@hotmail.co.uk Personal Profile: I am a hardworking and highly motivated individual with the willingness to learn and succeed in a working environment. I am also able to work under pressure and use my own initiative during different types of situations. I have a range of skills including interpersonal, leadership, motivation, good problem solving and communication skills, which enables me to provide excellent customer service. I am a very well organized individual with a good attitude towards work. In addition, I am a good team player who is willing to co-operate and work efficiently with others in order to achieve maximum productivity. I also enjoy working with a variety of different people and personalities. I strive a challenge and believe I will be an asset to any company. Qualifications and Education: Sep 2011 – 2014 Greenwich School of Management BA Hons Accounting & Finance Sep 2007 – 2009 St Francis Xavier College, Clapham, London BTEC National Diploma: Business Sep 2002 - 2007 La Retraite Roman Catholic Girls School GCSE Level: English Language, English Literature, Mathematics, Double Science, Health & Social Care, BTEC I.T, Religious Studies. IT Skills I am capable of applying my acquired knowledge in I.T into everyday situations, which allows me to be able to construct letters, flyers, websites, charts...
Words: 457 - Pages: 2
...Birth of LIBOR LONDON (Reuters) - Minos Zombanakis, born 86 years ago on a Greek island, remembers the birth of the interest rate benchmark now at the heart of a global rigging scandal well. "I was, more or less, if you excuse the lack of modesty, the one who started the whole thing," he laughs, speaking by telephone from his village among citrus orchards in Crete. Zombanakis was running the newly-opened London branch of Manufacturer's Hanover, now part of JPMorgan, when the bank organised one of the first syndicated loans pegged to what he dubbed a London interbank offered rate (Libor) in 1969. The $80 million loan, for the Shah of Iran, embodied the way cross-border financial markets that had been effectively closed since 1929 were being prised open - sowing the seeds for London to flourish as a global financial centre. The ambitious bankers of that era had little idea that the rate they were using to price these loans would become a central cog in the global financial system and a benchmark for $550 trillion in contracts ranging from interest rate derivatives to home loans and credit cards. Four decades on, that rate has been discredited by the brazen attempts of traders to game it, by the banks that have lied about their true costs of borrowing and by the regulators accused of either condoning or failing to stop manipulation. Libor, designed to reflect a bank's borrowing costs accurately, burst into the headlines in June when Barclays (BARC.L) was fined a record $450...
Words: 1495 - Pages: 6
...World Cities Millionaire Cities, Megacities and World Cities Millionaire city: 1 million+ pop Megacity: 10 million+ pop, 2,000 persons/km², one or two places merged World City: Major area which doesn’t just serve area, but world, normally multinational These are all interlinked in a pattern, usually by train. Also they started mainly in MEDC’s, but have slowly appeared more in LEDC’s. Contemporary Urbanisation Processes Urbanisation: the movement and growth of proportion of people living in urban areas. Characteristics: Since the 1950’s, urbanisation has started rapidly to increase in LEDC’s. the main two reasons for this are population growth and migration. Push factors ← Poor infrastructure ← Unemployment ← Poverty/Famine ← Natural Disasters ← Civil War ← Desertification Pull factors ← Better Jobs ← Better Education ← City life ‘Bright Life’ ← Better Social life ← Higher pay ← Financial Aid ← Better Healthcare - Urbanisation in the UK: Started with the Industrial Revolution in the 1800’s | |Economic |Social |- |- | |Push Factor |1. Unemployment from mechanisation |1. Poorer education |- |- | | |2. Little pay |2. Poorer social life | | | | | ...
Words: 5277 - Pages: 22
...HIST 1400 Jeffery Egan Keran Sun The era of religion conflict and witch craze can be called an era of black in Europe. In this era, the citizen of Europe suffered an era of witchcraft and the conflict between the Catholics and Protestants. As the result of the Black Death, the population of Europe as dramatically dropped, this directly influenced the population of labor force, which directly caused the result of economic depression. And this gave people great pressure. People blame all these torment on the witches, who was called the troop of devil. People consider most of the witches were women, and most of the women should be single or widows for no reason. This leads the tragedy of many innocent women to be killed or tortured to death. Because there was a great conflict between the two religion communications, the violence was widespread in the mid 16th century in the Europe area. The conflict between the two caused a large area of destructive damages in many parts of France. Catholic was the main fraction of religion before French war of religion. After the death of King Henry II, French Monarchy started to lose their power and strength, economy dropped dramatically, and the social structure started to lose stability at the time too. Also, some influential families valued this period of turmoil to gain more power and more impact power to the society. However, either side of the religion group wanted to compromise, the conflicts between the two still caused a horrible...
Words: 307 - Pages: 2
...I remember as a child there was a cartoon that was introduced and it was called the Jetson’s. This television program was a glimpse into our future and we did not know it. There was a telephone on the program when in use you would be able to see the person with whom you were speaking. Wow, we can use this feature now. At this point you may be wondering why I brought this cartoon into this paper, but sitting in front of the computer writing this paper it came to my remembrance. “East Orange is Leading the Way in Crime-Fighting Technology,” this title that was published in the Star Ledger which is a local newspaper. I am proud to say that I was born and raised in the City of East Orange that is located in the fine Garden State, New Jersey. I actually watched East Orange go from Suburbia to Urban and become a crime ridden 3.9 square miles. For such a small city it was infested with crime. The 1980’s was not good years and the 1990’s were no better. At this time crack cocaine entered into our very quiet community and reek havoc. It was as if we went to sleep and woke up in a nightmare that continued for many, many years. The city’s streets were out of control. There was prostitution, robberies, murders and folks that were addicted walking around the streets like zombies. It was almost as if we were living in the movie New Jack City. The citizens of this city were afraid to come out of their homes once night fell. It seemed that the Mayor and the City Council...
Words: 1223 - Pages: 5
...------------------------------------------------- Famous the world over for his exquisite shoes, follow in the footsteps of Jimmy Choo as he shares his favourite parts of Malaysia - his treasured homeland Last updated 18 March 2010 Although I live in the UK, Malaysia is still my country, and I am passionate about it. In my new role as Tourism Malaysia Ambassador, I hope to persuade many more people to visit – it’s such a spectacular place with so much on offer. I still have lots of family there, and go over about six times a year. The people of Malaysia are very friendly and speak English well. Staff in the resorts and hotels are well trained and really look after visitors with care and attention. Whichever part of the country you visit, there’s so much for holidaymakers to do, both in peninsular Malaysia and in the separate states of Sarawak and Sabah, on the island of Borneo. Apart from its natural beauty and fantastic wildlife such as orang-utans and Sumatran rhinoceros, the country has great activities, from diving and white water rafting, to golf and bird watching. Penang I was born on Penang, so it’s one of my favourite places. Called the Pearl of the Orient, the little island has been one of Malaysia’s top tourist destinations since the 1970s, when backpackers first discovered its beautiful beaches. I can remember riding around on my moped and camping out with friends when I was a teenager. Penang is a fascinating blend of Malay, Indian, Chinese and a bit...
Words: 3857 - Pages: 16
...two events to parallel the multi-event games in athletics of the modern pentathlon and the decathlon. This was part of the ambition to create an Olympics of the mind. The Mind Sports Olympiad returned to London with sponsorship in both 1998[8] and 1999. Despite a falling out between the organisers a successful event was held in Alexandra Palace the next year in 2000. During this time several satellite events were held around the world bearing the Mind Sports Olympiad name. These have occurred in Cambridge, England;] Singapore; Seoul, South Korea; Milan, Italy; Oulu, Finland; and Prague, The Czech Republic. The Mind Sports Olympiad main event continued to happen but without sponsorship the tournaments were held at a number of different universities. The event was still going strong for the years 2001 - 2006. The main 2004 event featured a separate event for schools, featuring competitions and activities in chess, Go, quizzes and intelligence puzzles. But in 2007 the Mind Sports Olympiad was reduced to a much smaller venue in Potters Bar due to no sponsorship and no advertising.[6] In 2008 the MSO saw a revival returning to a central London venue, the Royal Horticultural Halls, Westminster and again on 21–31 August 2009[19] The 2010 event was held at the Soho Theatre in London.[20] In 2011, the Mind Sports Olympiad moved to a bigger...
Words: 353 - Pages: 2
