JPMorgan Chase, the biggest bank in the United States, incurred enormous losses in the summer of 2012 from investment decisions made by its Chief Investment Officer (CIO) worth $5.8 billion. While JP Morgan was the only major profitable bank during the recent economic downturn, the recent losses contributed to intense criticisms since its Chief Executive Officer, Jamie Dimon, opposed stricter regulation in the aftermath of the 2008 economic crisis. However, the bank attributed part of the loss to sloppy but well-intentioned business strategy for managing financial risk. The huge losses demonstrated that big banks are still unable to understand the threats or risks posed by their own speculation. JPMorgan Chase filed falsified first quarter reports to the Securities and Exchange Commission in attempts to cover the loss.

Preventing High-Risk Gambles in Securities/Banking:

The Securities and Exchange Commission increasingly focused on the huge losses at JPMorgan Chase and argued that the...
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