Missouri Pension Fund Sues JPMorgan Over 'Whale' Losses
April 15, 2013
Michael W. Stocker comments on JPMorgan lawsuit over its $6.2 billion "London Whale" loss
The bank converted its chief investment office, originally intended to reduce risk to the bank, into an "unsupervised proprietary trading operation" that accumulated billions of dollars in highrisk trades, the lawsuit said.
"Although the purpose of JPM's CIO was to hedge against risk, the company's board and senior management oversaw its transformation into a high-stakes casino," said Michael Stocker, a plaintiffs' lawyer at the firm Labaton Sucharow. "That's like filling a fire extinguisher with gasoline."