London Whale: Bruno Iksil Concepts

Swimming With Sharks: My Journey into the World of the Bankers

by Joris Luyendijk · 14 Sep 2015 · 257pp · 71,686 words

HSBC was caught laundering drugs money while several banks were fined for ignoring sanctions against Iran and Sudan. In 2012, a trader known as the London Whale lost over $6 billion at JP Morgan. And for years now across Europe, small and medium-sized companies, pension funds, utilities, municipalities and other public

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. But no such controversy exists surrounding the scandal caused by the trader known now as ‘the London Whale’. In the spring of 2012, a trader at the London offices of JP Morgan by the name of Bruno Iksil managed with his small team to run up a $6.2 billion loss. The nickname refers

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year before his whale-like loss, Iksil’s pay came to $7 million. Iksil didn’t break any laws and has never been prosecuted. The London Whale cost JP Morgan a lot of money but banks can also use complexity as a deliberate tool for their own purposes. I spoke to a

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to make this worse: accidents in today’s financial world can become very expensive very quickly – as the adventures of the F9 monkey or the London Whale show. Potential losses on some complex financial products are almost limitless. When extending a loan or buying shares, you know in advance your maximum losses

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of the blog, the Swiss bank UBS was forced to acknowledge that one of its traders, Kweku Adoboli, had lost $2 billion. Contrary to the London Whale, Adoboli had broken lots of rules and laws, making him a so-called ‘rogue trader’. Every few years a scandal of this kind breaks out

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scandals within 1, 2, 3 (see also rogue traders) Barings 1 FX 1, 2 HSBC 1, 2 JP Morgan 1, 2 LIBOR 1, 2, 3 London Whale, see Iksil, Bruno Société Générale 1 UBS 1 sport and war analogies within 1 whistle blowers within 1, 2, 3 women in, men’s attitudes

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1, 2 and drugs money 1, 2 mixed investment–commercial nature of 1 human resources (HR) (see also recruitment), and redundancy 1, 2 Iksil, Bruno (‘London Whale’) 1, 2 incentives: and accountancy firms 1 ‘perverse’ 1, 2, 3, 4, 5 need to remove 1 short-termism encouraged by 1 Initial Public Offering

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scandal 1, 2, 3 Lloyds, annual results announcement of 1, 2 London riots 1 London Stock Exchange, and ‘my word is my bond’ 1, 2 London Whale, see Iksil, Bruno Master of the Universe 1, 2, 3 Masters of Nothing: How the Crash Will Happen Again Unless We Understand Human Nature (Hancock

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1 scandals 1, 2, 3 (see also rogue traders) Barings 1 FX 1, 2 HSBC 1, 2 JP Morgan 1, 2 LIBOR 1, 2, 3 London Whale, see Iksil, Bruno Société Générale 1 UBS 1 school system, UK 1 Schroders 1 Schumer, Charles E 1 short-termism 1, 2 Sid (trader, broker

The Spider Network: The Wild Story of a Math Genius, a Gang of Backstabbing Bankers, and One of the Greatest Scams in Financial History

by David Enrich · 21 Mar 2017 · 513pp · 141,153 words

J.P. Morgan’s London office, Bruno Iksil, had amassed huge positions in an exotic class of derivatives called credit default swap indexes. Before long, his bets grew so big that he was controlling a substantial slice of the market and had acquired a nickname: the London Whale. As Hayes had learned, size is

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Lindsay Fortado. Chapter 15: Spiders The Andrew Smith section is based on former traders’ interviews with me and with regulators and internal chat transcripts. The London Whale description is based in part on J.P. Morgan’s internal review into the debacle, the results of which were published in January 2013 in

The City

by Tony Norfield · 352pp · 98,561 words

or later, turns investment geniuses into morons. A famous example from 2012 was that of the ‘London Whale’. The big mammal in question was a trader for US bank JP Morgan Chase in London named Bruno Iksil.9 After successfully betting on credit derivatives in 2011 and making hundreds of millions of dollars, things

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Commercial Banks in 2008’, Federal Reserve Bulletin, Vol. 95, 2 June 2009, p. A76. 8Norfield, ‘Derivatives and Capitalist Markets’, pp. 116–18. 9Patricia Hurtado, ‘The London Whale’, Bloomberg, 23 April 2015, at bloombergview.com. 10Hilferding, Finance Capital, p. 172. 11Ibid., p. 180. 12Daniel E. Saros, in ‘The Circulation of Bank Capital and

The Best Business Writing 2013

by Dean Starkman · 1 Jan 2013 · 514pp · 152,903 words

Levine 18. The Tale of a Whale of a Fail Dealbreaker Certain things just can’t be explained in the mass-market press, and the London Whale trade that caused billions of dollars in losses for JP Morgan is one of them. For one thing, JP Morgan refused to offer any details

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really get up to speed on a hugely important story, there was only one place to turn. Hi! Would you like to talk about the London Whale? Sure you would. The amount of misunderstanding of our poor beleaguered beluga is staggering, so I figured we could try to embark on a voyage

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? Well, the thing I described above in excruciating detail hedges JPMorgan’s risk of a lot of corporate bankruptcies. Yes, you say, but what does Bruno Iksil’s $100bn CDX long credit position hedge? Well, it hedges his short credit position. Which hedges JPMorgan’s overall long credit position. OKAY, you say

Other People's Money: Masters of the Universe or Servants of the People?

by John Kay · 2 Sep 2015 · 478pp · 126,416 words

the industry. But in 2012 Dimon’s image would be tarnished when his bank was forced to disclose large losses on so-called hedging activities. Bruno Iksil, the ‘London whale’, had made huge and unsuccessful bets in derivative markets. Barclays’ Diamond would be engulfed by a scandal invoking false disclosure of his bank’s

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, that former employee of the French bank Société Générale (now in jail), who was ordered to repay €4.9 billion, and J.P. Morgan’s ‘London whale’ (Bruno Iksil), whose irregular trading was said to have lost the US bank $6 billion. Perhaps the largest of such excesses were those reported by ‘Howie’ Hubler

The Blockchain Alternative: Rethinking Macroeconomic Policy and Economic Theory

by Kariappa Bheemaiah · 26 Feb 2017 · 492pp · 118,882 words

mistakes. Consider the case of the J.P. Morgan’s “London Whale” episode in 2012. As the traders executed their hedging strategy by entering into a series of derivative transactions involving credit default swaps (CDS) , one of the JP Morgan traders, Bruno Iksil, accumulated outsized CDS positions in the market and began distorting the

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focusing on simplicities, the traders focused on the complexities of derivative markets and ignored the danger signals provided by the stress tests (Forelle, 2012). The London whale incident is just one of the many financial scandals that have involved the TBTF banks following the crisis. Since 2008, HSBC has been involved in

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.businessinsider.com/transferwise-mark-carney-and-uber-type-situation-in-banking-2015-1?r=US&IR=T Forelle, C. (2012, May 11). What Beached the London Whale? Credit Indices. Retrieved from The Wall Street Journal: http://blogs.wsj.com/marketbeat/2012/05/11/more-on-what-beached-the

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-london-whale-credit-indices/ Freeman, J. (2011 , March 19). Mega-Banks and the Next Financial Crisis . Retrieved from The Wall Street Journal: http://www.wsj.com/articles/

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and the Role of Banks in Financial Intermediation . New York City: Federal Reserve Bank of New York Economic Policy Review. Scannell, K. ( 2016, February 23). London Whale complains of unfair blame for $6.2bn JPMorgan losses . Retrieved from Financial Times: https://next.ft.com/content/3f558d16-da51-11e5-a72f-1e7744c66818 Smaghi, L

Fed Up: An Insider's Take on Why the Federal Reserve Is Bad for America

by Danielle Dimartino Booth · 14 Feb 2017 · 479pp · 113,510 words

. A few months later, market watchers were puzzled by weird movements in some credit markets; gossip began circulating about a rogue trader everyone dubbed the London Whale for the large positions he was taking in credit default swaps. The mystery was solved in April, when JPMC, now the biggest bank in the

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enormous bets on derivatives that triggered $2 billion in losses for the bank. (The price tag would ultimately total $6 billion.) The French-born employee, Bruno Iksil, became the perfect illustration of Fisher’s argument that nothing had changed. Dimon at first called the debacle “a tempest in a teapot.” But an

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Fed supervisors in 2009 for not pushing hard enough to compel Citigroup to repay $45 billion it borrowed during the financial crisis. Then, during the London Whale debacle, Tarullo had demanded to know how New York Fed supervisors had let such massive bets occur without their knowledge and oversight. So Tarullo was

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, www.federalreserve.gov/newsevents/press/monetary/20120125a.htm. In a historic vote: Ibid. A few months later, market: Jessica Silver-Greenberg and Nelson D. Schwartz, “‘London Whale’ Said to Be Leaving JP Morgan,” New York Times, May 16, 2012. Dimon at first: Stephen Gandel, “The 10 Stages of Jamie Dimon’s Blubbering

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London Whale Grief,” Fortune.com, April 11, 2013. But an investigation: Robert Lenger, “JPM Trade ‘Flawed, Complex, Poorly Reviewed, Executed, Monitored,’” Forbes.com, May 12, 2012. A

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of Directors: Thomas M. Hoenig, fdic.gov, www.FDIC.gov/learn/board/hoenig/bio/html. “With Mr. Fisher as a thought leader”: Simon Johnson, “The London Whale, Richard Fisher and Cyprus,” New York Times, March 21, 2013. The December 2012 FOMC statement: FR: FOMC Statement, December 12, 2012. CHAPTER 20: THE TAPER

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, Ken, 135–36 Lewis, Michael, 18, 188, 258 Liar’s Poker (Lewis), 18, 188 Liddy, Edward M., 147 liquidity trap, 209–11 living wills, 246 London Whale, 225–26 Long-Term Capital Management (LTCM), 13–15 Mack, John, 135 McAllister Ranch development, 133 McConnell, Mitch, 178 McCulley, Paul, 122 McDonald’s Corporation

The Golden Passport: Harvard Business School, the Limits of Capitalism, and the Moral Failure of the MBA Elite

by Duff McDonald · 24 Apr 2017 · 827pp · 239,762 words

the author of this book. But the moment didn’t last. In 2012, the firm revealed that a single trader in its London office—Bruno Iksil, nicknamed “the London Whale”—had incurred a trading loss of $2 billion, and the loss continued to grow thereafter, eventually reaching more than $6 billion. Dimon, who initially

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the rescues of Bear Stearns and Washington Mutual and then raked over the coals for what critics saw as excessive risk taking during the whole London Whale episode. The many, many HBS grads at McKinsey & Company. There was a joke in the mid-1990s that since pretty much every bank of importance

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MBAs required to buy computers and, 155; Kanter and, 404; layoffs at, 404, 492–93 Icahn, Carl, 367, 480, 481 Ignatius, Adi, 306 Iksil, Bruno (London Whale), 472, 548 Immelt, Jeffrey, 305, 531 “Impact Investing: Trading Up, Not Trading Off” (Bales), 7 INCADIS (Individual Case Discussion Simulator), 287 income inequality, 5, 10

Nobody's Fool: Why We Get Taken in and What We Can Do About It

by Daniel Simons and Christopher Chabris · 10 Jul 2023 · 338pp · 104,815 words

game.16 What’s true in sports performance also holds in financial markets—no investment will perform consistently all the time. Bruno Iksil, the trader who came to be known as the “London Whale,” lost billions of dollars in 2012 for JPMorgan Chase because he put his firm’s money on a prediction that

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Times, May 27, 2012 [https://www.nytimes.com/2012/05/27/business/how-boaz-weinstein-and-hedge-funds-outsmarted-jpmorgan.html]; E. Owles, “Timeline: The London Whale’s Wake,” New York Times, March 27, 2013 [https://archive.nytimes.com/www.nytimes.com/interactive/2013/03/27/business/dealbook/20130327-jpmorgan-timeline.html

How to Speak Money: What the Money People Say--And What It Really Means

by John Lanchester · 5 Oct 2014 · 261pp · 86,905 words

line with their rewards. The British bank C. Hoare and Co. is unusual in being an unlimited liability bank, wholly owned by one family. London Whale The nickname of Bruno Iksil, the trader at J. P. Morgan’s London branch who was paid $7.32 million in 2010 and $6.76 million in 2011