Be Afraid, Be Very Afraid

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chaseEven though Dodd-Frank legislation is suppose to keep our financial system safe from another crisis like the one that happened in 2008, a newly released Senate report disproves this.

Questions:
1. According to the report detailing the trading fiasco, what are some of the signs that this could happen again?
2. What was the trend in “risk limit breaches” on trading at Chase between late 2011 and the first quarter of 2012? Express this in a percentage.
3. How did the investigation indicate that Chase minimized losses? What type(s) of controls would have prevented this?

Source:
Morgenson, G. (2013). JP Morgan’s Follies, for All to See. The New York Times, March 16 (Retrievable online at http://www.nytimes.com/2013/03/17/business/jpmorgans-follies-for-all-to-see-in-a-senate-report.html?_r=0)