3. Spreadsheet error costs JPMorgan $3.1 billion
You might recall the “London Whale” incident in 2012, when notorious trader Bruno Iksil — whose other monikers include the White Whale and even Voldemort — conducted a series of credit default swaps that cost JPMorgan Chase $6.2 billion.
What you might not know, however, is that half the loss was incurred by a simple Excel spreadsheet error.
Bloomberg reports that the Excel model, which relied heavily on copy and pasting of information, accidentally “underestimated risk by half.”
Author(s): Serah Louis
Publication Date: 1 March 2021
Publication Site: MoneyWise