JPMorgan Unit Shifts Operations
JPMorgan Chase & Co. will improve risk management of the unit that racked up more than $2 billion of trading losses, while avoiding big bets on derivative and private-equity investments, the Wall Street Journal reported today. The shifts are being prompted by an internal review by senior bankers of what went wrong and how to prevent another trading blowup. The review is not complete, but early conclusions focus on improving JPMorgan's Chief Investment Office (CIO) risk-management processes rather than curtailing investment options or broadly reining in risk. The botched bets at the CIO have cost the bank $17 billion of market value.