JPMorgan Chase London Whale H: Cross-Border Regulation

Yale Program on Financial Stability Case Study 2014-2H-V1

11 Pages Posted: 7 Apr 2015

See all articles by Arwin G Zeissler

Arwin G Zeissler

Yale University - Yale Program on Financial Stability

Andrew Metrick

Yale School of Management; National Bureau of Economic Research (NBER); Yale University - Yale Program on Financial Stability

Date Written: December 1, 2014

Abstract

As a global financial service provider, JPMorgan Chase (JPM) is supervised by banking regulatory agencies in different countries. Bruno Iksil, the derivatives trader primarily responsible for the $6 billion trading loss in 2012, was based in JPM’s London office. This office was regulated both by the Office of the Comptroller of the Currency (OCC) of the United States and by the Financial Services Authority (FSA), which served as the sole regulator of all financial services in the United Kingdom. Banking regulators in the US and the UK have entered into agreements with one another to define basic parameters for sharing information gathered during bank examinations and even assisting one another with bank inspections under certain circumstances. However, even as JPM sought to stifle OCC and FSA supervision, cooperation between the US and UK regulators was minimal. 

Keywords: Systemic Risk, Financial Crises, Financial Regulation

JEL Classification: G01, G28

Suggested Citation

Zeissler, Arwin G and Metrick, Andrew, JPMorgan Chase London Whale H: Cross-Border Regulation (December 1, 2014). Yale Program on Financial Stability Case Study 2014-2H-V1. Available at SSRN: https://ssrn.com/abstract=2588507 or http://dx.doi.org/10.2139/ssrn.2588507

Arwin G Zeissler

Yale University - Yale Program on Financial Stability ( email )

165 Whitney Avenue
P.O. Box 208200
New Haven, CT 06520-8200
United States

Andrew Metrick (Contact Author)

Yale School of Management ( email )

165 Whitney Avenue
New Haven, CT 06511
United States
(203)-432-3069 (Phone)

HOME PAGE: http://faculty.som.yale.edu/andrewmetrick/

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Yale University - Yale Program on Financial Stability

165 Whitney Avenue
P.O. Box 208200
New Haven, CT 06520-8200
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
114
Abstract Views
746
rank
238,995
PlumX Metrics