Wednesday, December 8, 2010
So lets get on with the list...........enjoy!!!
In no particular order the TRC 2010 nominations for Risk Management awfulness (if there is such a word!) go to:
2. JP Morgan. This one's a real "head shaker" and a clear leader in that category. Not satisfied that the common man was quite upset enough by the hubris of proprietary trading of large Banks - of course, now theoretically curtailed under the Dodd Frank Act - it turns out that JP Morgan and its beneficiaries are in fact the owners of GBP1Billion worth of cooper according to the London Metal Exchange. That's just over 50% of all the copper stored in London. Bad enough even if they had cornered the market with mostly client ordered trades (ever heard of the right to say NO, guys!), worse still is the fact is that JP Morgan is one of the banks starting an EFT specifically to cover, yep you guessed it....Copper.....
Great PR, great COI, could it ever be more obvious that there is something odorous going on here. "Prove it", will say the lawyers, once everyone is "lawyered up" after the inevitable disasters (ie clients losing money at the expense of everyone except the bank). Somehow the mal odor seems quite enough burden of proof!