J P Morgan loss: by numbers

$14bn wiped off bank's value.

Jamie Dimon, chief executive of J P Morgan, provided one of the soundbites of the week when he described events that wiped billions of dollars off the value of his bank thus: 

These were grievous mistakes, they were self inflicted, we were accountable and we happened to violate our own standards and principles by how we want to operate the company

It marked a major change of heart from Dimon who had dismissed earlier suggestions that something was badly wrong at the company he runs as "a complete tempest in a teapot".

And when you look at the numbers involved, it's not difficult to see why he changed his view:

 

$2bn – the amount the investment bank reported it had lost as a result of trades originally designed to protect it against the volatility of the financial markets. The trader at the heart of the affair is reported to be Bruno Iksil, based in London and owner of two nicknames: "London Whale" and Harry Potter's nemesis Voldemort.

$1bn – Dimon conceded that the overall losses could end up being even higher, possibly another $1bn.

$14.4bn – wiped off J P Morgan's share value on Friday following the announcement.

$350bn – vaule of assets held by J P Morgan's chief investment office in which Iksil worked. 

$100m – the amount Iksil is thought to have generated for the investment bank before this latest turn of events.

$14m – while it is not clear how much Iksil gets paid this is how much the boss of the CIO division, Ina Drew, received last year.

 

 

J P Morgan Chase CEO: "grievous mistakes"

Jon Bernstein, former deputy editor of New Statesman, is a digital strategist and editor. He tweets @Jon_Bernstein. 

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You may call me a monster – but I'm glad that girl's lemonade stall got shut down

What's wrong with hard-working public servants enforcing perfectly sensible regulations?

Who could fail to be moved by the widely shared tears of a five year old whose innocent lemonade stall was brutally shut down by evil bureaucrats? What sort of monster would not have their heartstrings tugged by the plaintive “I've done a bad thing” from a girl whose father tells us she “just wanted to put a smile on people's faces”?

Well me, actually.

There are half a million cases of food poisoning each year in the UK, and one of the reasons we have stringent controls on who can sell food and drink, especially in unsealed containers, is to try to cut those figures down. And street stalls in general are regulated because we have a system of taxation, rights and responsibilities in this country which underpins our functioning society. Regulation is a social and economic good.

It’s also pretty unfair to criticise the hard-working public servants who acted in this case for doing the job they are no doubt underpaid to do. For the council to say “we expect our enforcement officers to show common sense” as they cancelled the fine is all very well, but I’m willing to bet they are given precious little leeway in their training when it comes to who gets fined and who doesn’t. If the council is handing out apologies, it likely should be issuing one to its officers as well.

“But these are decent folk being persecuted by a nanny state,” I hear you cry. And I stand impervious, I’m afraid. Because I’ve heard that line a lot recently and it’s beginning to grate.

It’s the same argument used against speed cameras and parking fines. How often have you heard those caught out proclaim themselves as “law-abiding citizens” and bemoan the infringement of their freedom? I have news for you: if you break the speed limit, or park illegally, or indeed break health and safety or trading regulations, you are not a law-abiding citizen. You’re actually the one who’s in the wrong.

And rarely is ignorance an excuse. Speed limits and parking regulations are posted clearly. In the case of the now famous lemonade stand, the father in question is even quoted as saying “I thought that they would just tell us to pack up and go home.” So he knew he was breaking the rules. He just didn’t think the consequences should apply to him.

A culture of entitlement, and a belief that rules are for other people but not us, is a disease gripping middle Britain. It is demonstrated in many different ways, from the driver telling the cyclist that she has no right to be on the road because she doesn’t pay road tax (I know), to the father holding up his daughter’s tears to get out of a fine.

I know, I’m a monster. But hooray for the enforcers, I say.

Duncan Hothersall is the editor of Labour Hame