While studying tables compiled by Risk on the make-up of bank risk committees (see table A, below), a former chief risk officer (CRO) stops at one institution and gasps. “That can’t be the risk committee,” he says. Then, after a nervous laugh: “Are you sure? You’re not missing a couple of people? That’s extraordinary. It’s just completely extraordinary. I’m speechless.”
The bank was JP Morgan, which announced a $2 billion derivatives trading loss in its chief investment office (CIO) on May 10.