Your wizard’s a bad one.
It turns out that the strategy that moves markets just got awkwardly filed away as an egregious error. The highlights:
- “The portfolio has proven to be riskier, more volatile, and less effective as an economic hedge than the firm previously believed”
- “In hindsight, the new strategy was flawed, complex, poorly reviewed and poorly monitored”
An awkward egregious $2 billion error.
That Jamie D CEO called a “tempest in a teapot” way back when it first got reported. Mr JD: it’s either too big to fail, or too small to make a difference. But I think that you need to pick one.
Except, um, fail.
Bloomberg’s article: $2 billion loss at JP Morgan’s CIO.
For a better breakdown of how it all went wrong, I defer to Matt Levine: Whale Sushi on the Menu.