QuoteOriginally posted by: saisriramCan anyone help to understand what exactly happened, how it happened and how was it not detected earlier and how did it come into light ?I think by their (Jamie Dimon's) own admission, they were sloppy:QuoteThe strategy taken at its CIO had been "riskier, more volatile and less effective" than previously believed, Mr Dimon said."There were many errors, sloppiness and bad judgement. These were egregious mistakes. "They were self-inflicted and this is not how we want to run a business."JPMorgan isn't that different from Citigroup in that it is so large it is impossible for the right and left hand to be in constant communication with each other, (plus there are about x dozen other arms waving about in an uncontrolled manner). So mistakes get made.It would be easy to say that this is all about large banks still chasing high-risk/high-return strategies and desperately waiting for the "good old days" of Prop Trading to return, (and there is a bit of truth to that*) but it would over simplify the problem. Like most "closing the barn-door" legislation, the Volcker rule would not have stopped this, meaning either the industry is not regulated enough, not regulated properly or maybe that this was intentionally out of scope of the Volcker rule and this kind of loss does not need regulating and that this was not a regulatory issue at all.* There is a " very large American investment bank" which I may or may not have already named here, which I know from a friend who interviewed there, is actively hiring for regulatory roles, and that when they sit down in the interview with you state that:"We are funded directly by Front Office, have an almost limitless budget, and our primary remit is to understand the changing regulatory environment and manage it so that our desks can continue to trade and make money 'Business as Usual'."Personally I would want to work for the bank that says:"We are funded by directly by Front Office, have an almost limitless budget, and our primary remit is to understand the changing regulatory environment and manage it so that our business can be redirected accordingly and desks can find new opportunities to trade and make money"I know which one is most likely to be making money in 5 years time.