Weekly Wrap

Will the London Whale lead to more bank regulation?

Kai Ryssdal Mar 15, 2013
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Weekly Wrap

Will the London Whale lead to more bank regulation?

Kai Ryssdal Mar 15, 2013
Share Now on:
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Senate investigators held a hearing today on JPMorgan’s estimated $6.3 billion loss on risky trading connected to Bruno Iksil, a trader known as the “London Whale.” But new evidence from internal emails and phone calls suggests that even bigger fish may be involved.

“The details of this report were incredibly damning and they really portrayed a bank that showed an impressive amount of hubris and incompetence — senior managers that were misleading to the public, misleading to the regulators,” said FT Alphaville’s Cardiff Garcia. “This is going to be a really powerful selling point for advocates of that particular policy [to break up the big banks].”

And yet, many analysts believe this incident still may not cause any major changes.

“Jamie Dimon and the bank have acknowledged over and over again that this was an enormous mistake,” Fortune’s Leigh Gallagher said. “On the other hand, this $6 billion loss — they have billions more. This was not damaging materially to the company. It was damaging to its reputation...It did not take the company down in any way, shape or form — and it wouldn’t, because it’s so big.”

Listen above for more analysis of this week’s business news. Meanwhile, check out the #longreads suggestions for the weekend.

Cardiff Garcia suggests:

Leigh Gallagher has these reads:

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