JPMorgan Chase
Global investment bank whose Chief Investment Office is examined in the London Whale investigation.
PIA Investigations Covering This Organisation
JPMorgan Chase appears in 1 Project Insider Asia investigation, covering Corporate Disasters.
The Evidence Record
What the investigations document about JPMorgan Chase's involvement, drawn from the published investigation records.
JPMorgan CIO Trading Loss
| Investigation focus | How the London Whale Lost $6.2 Billion and Exposed Shadow IT Risk |
|---|---|
| Cost | $6.2B |
| Key dates | 2026-07-20 |
Governance Lessons
Lessons from the investigations covering JPMorgan Chase, each attributed to its source investigation.
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Shadow IT Is a Governance Failure
Bruno Iksil built a complex derivatives portfolio using a spreadsheet model that nobody in risk management understood. When the person who builds the model is the only person who understands it, you do not have a model — you have a single point of catastrophic failure.
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Risk Metrics Must Be Independently Verified
The Value-at-Risk (VaR) model was manually adjusted to show lower risk. When risk metrics can be altered by the people whose bonuses depend on them being low, your risk management system is a decoration, not a safeguard.
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Complexity Hides Risk
The portfolio used a custom Credit Default Swap index that was so complex even other traders could not price it. When you need a PhD to understand a position, the CEO should not be allowed to hold it. Complexity is the enemy of oversight.
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