Flaws in JPMorgan Chase's approach to risk management and reporting were significant contributors to its $6.2 billion losses in 2012, write Richard Beales and Martin Hutchinson. The bank's lust for risk-taking overtook the chief investment office's ability and mandate to manage risk, offering a lesson for competitors and regulators. "At best, the CIO's systems last year look alarmingly amateurish. At worst, the managers didn't understand or care much about the risks," they write.
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