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Follow us @ twitter.com twitter.com Welcome to Capital Account. From Whale Tails to Unicorn Fairytales, this week has ended with a bigger splash then anyone could have expected. The London Whale has officially capsized JP Morgan’s balance sheet with a reportedly 2 billion dollar trading loss. Jamie Dimon, the firm’s CEO, admitted “egregious mistakes” were made and that he and his colleagues were “stupid.” Fair enough, but why were these mistakes made, and was this trade a legitimate hedge as Jamie Dimon claims, or more of a “unicorn hedge” as our guest Heidi N. Moore called it? Why was this trade put on through the company’s CIO, and why was it done so on a portfolio level? That’s an awfully broad way to hedge risk on the titanic. What happens with this ship finally tries to make it back to port? JP Morgan now has tremendous exposure on its balance sheet that, if it were to try and unwind, may not find too many friendly buyers. Also, what does this recent hole on the side of Jamie’s ship say about risk management on wall street? JP Morgan and it’s captain Jamie Dimon have been the darlings of wall street. His firm weathered the financial crisis in 2008 without so much as a hiccup, using it as an opportunity to buy up rival Bear Sterns for pennies on the dollar. But will this latest torpedo to JP Morgan’s balance sheet provide further ammunition to those calling for stricter and tighter regulations of wall street firms that make risky bets with depositors’ money? Is this … Video Rating: 4 / 5
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Successful entrepreneur and CEO, Jay Adelson, demystifies the start-up process by providing advice, tips, and answering questions. Today he discusses process determining when your idea needs to make money and what the path to that kind of decision making makes sense. Have a question about launching a business that you want answered? Comment or add a video response! Jay’s Twitter: www.twitter.com EMail Your Questions: askjay@revision3.com Never Miss An Episode! Subscribe Here: www.youtube.com More AskJay Episodes: www.revision3.com ABOUT ASK JAY: Entrepreneur, CEO, and business owner Jay Adelson (Equinix, Digg, Revision3, SimpleGeo) demystifies the start-up process by providing advice, tips, and answering questions. Submit questions to learn how to turn any business idea into reality and maybe even change the world Video Rating: 5 / 5
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