Also, that may be what Dimon said.... I'm not sure I buy it though.
The guy was known for ALWAYS taking big risks. The risks he took weren't actually extraordinary at all.
If you read the account of what happened it basically boiled down to Boaz Weinstein noticing the issue and pouncing. Forcing JP Morgan to push back (and usually big banks win when they do push back) however he didn't blink, because the guy is about as aggressive and "reckless" as it gets....
So JP Morgan got screwed.
http://www.newser.com/story/146838/meet-the-man-who-took-down-jpmorgan.html
They knew the risk fine. They just took it.
What people don't ever seem to get about investment is.... if there is a 10% chance it can blow up.... there is a 10% chance it can blow up!
Just because something vaguely unlikely happened doesn't mean you calculated wrong, because there was a chance for it to go wrong. Only if it's consistent that such things happen does it suggest a problem in your methodology.
You might blame them for hiring a guy who likes to take such gambles sure, not sure how you regulate that, but the dude likes to take gambles.
