Financial Risk Manager Part 1

The Chief Investment Office (CIO) at J.P. Morgan Chase Bank was primarily responsible for investing excess deposits. This function became central to the London Whale scandal in 2012, where the CIO's synthetic credit portfolio incurred massive losses due to large, risky positions in credit derivatives. The office was managing the bank's excess deposits to generate returns, which led to the controversial trading activities that resulted in approximately $6.2 billion in losses.