JP Morgan posts $2B in trading losses: Why it happened explained

JP Morgan posts $2B in trading losses: Why it happened explained

05/11/12 | by blogger | Categories: Biography, Business

Here is what the Chief executive of JP Morgan said:

Jamie Dimon, chief executive of JP Morgan, told reporters after US markets closed that the losses were caused by “errors, sloppiness and bad judgement". “This was a unique thing we did,” Dimon said. “Obviously it had a lot of problems. It was a bad strategy. It became more complex, it was poorly managed.”

Here is why it happened:

When you pay your employees large bonuses based on short term gains, the result is you get short term gains without regard for long term consequenses. This is yet another example of the “Wharton School of Business Management Mentality” that is destroying businesses in the USA.

A related previous blog post

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