After JPMorgan Trading Debacle, a Chorus of Criticism

Tim Boyle/Bloomberg News

By KEVIN ROOSE, NYT

The news of JPMorgan Chase’s estimated $2 billion loss stemming from a misguided hedging strategy in the bank’s chief investment office has set off a spring-loaded schadenfreude cannon among the industry’s critics.

Jamie Dimon, the bank’s chief, whom The New York Times Magazine crowned “America’s Least-Hated Banker” less than two years ago, has taken a majority of the blame for the enormous loss. The problems have also sharpened the focus on a London trader, Bruno Iksil, who reportedly built up huge credit-related positions in the trading unit, earning him the nicknames “London Whale” and “Voldemort.”

Since the shocking disclosure, Mr. Dimon was flayed by industry analysts as well as media onlookers for having been a vocal opponent of the Dodd-Frank regulatory overhaul while at the same time overseeing risky trades that could hurt his bank’s earnings.

(More here.)