What are some of the ethical issues involved with the JPMorgan trading scandal Why is JPMorgan facing a civil suit if executives did not have knowledge of the wrongdoing Describe some of the lapses in JPMorgans oversight of its trades A trader known as the London Whale (because of his large portfol...

What are some of the ethical issues involved with the JPMorgan trading scandal? Why is JPMorgan facing

Question:

What are some of the ethical issues involved with the JPMorgan trading scandal?
Why is JPMorgan facing a civil suit if executives did not have knowledge of the wrongdoing?
Describe some of the lapses in JPMorgan’s oversight of its trades.

A trader known as the London Whale (because of his large portfolio and extensive trading) became the center of a trading loss that cost JPMorgan more than $6 billion. Two traders in JPMorgan’s London offices face charges from the U.S. and U.K. governments for allegedly trying to cover up the losses. Reports have indicated that one employee was in charge of ensuring proper conduct over these trades, but that the standards for oversight were so broad that they were ineffective. JPMorgan is battling this scandal while trying to come to terms with regulators on faulty mortgage securities that contributed to the 2008 financial crisis.

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...