Levin noted that the London Whale portfolio breached critical risk limits in an ever-increasing fashion.
FORBES: Senate Report Slams JPMorgan For London Whale Debacle
That figure, court records show, exceeded the risk limits for his entire desk at Goldman, a group of about 10 traders.
Most operate within a web of risk limits, documentation requirements and other rules that make it easy to turn a bad bet into a criminal matter.
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But the black eye for JPMorgan offered some lessons as well, Dimon writes, like fighting complacency, asking hard questions instead of shying away from conflict and matching controls and risk limits to the activities they govern.
"The trading strategy, which was subject to the bank's risk limits and used by many in the marketplace, was based on a legitimate market view that diversified and lowered the bank's portfolio risk during the peak of the financial crisis, " Deutsche Bank's Mr. Golden said in the statement.
"We found a trading operation that piled on risk, ignored limits on risk-taking, hid losses, dodged oversight and misinformed the public, " said Carl Levin, the subcommittee's chairman.
"We found a trading operation that piled on risk, ignored limits on risk-taking, hid losses, dodged oversight and misinformed the public, " said Carl Levin, the subcommittee chairman, who is a Democrat.
All the measures that regulators are putting in place to try to make banks safer, such as higher capital requirements, stricter regulation and limits on risk-taking, need to be tested against a simple question.
Credit card balances dropped because cardholders reduced their use of credit cards at the same time as issuers reduced their own lending risk, slashed credit limits on millions of existing accounts and closed riskier accounts.
FORBES: Credit Card Delinquency Rate Falls for 17th Consecutive Month
Risk is moving to real-time in trading limits and some other areas, but overall risk is still mostly end of day batch processing and pulls from multiple sources of data.
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Attacking such a huge population of players seeking such a small uptake rate limits our operational risk.
Victims have their accounts emptied or card limits used, and risk having the details sold to other criminal gangs.
The same problem exists if the GSEs were reconfigured as for-profit companies but with tighter limits in areas like risk exposure and executive compensation.
Most economists expect growth to slow to a still-healthy 9-10% this year, but there are growing concerns that new government limits on bank lending risk choking the economy.
After all, even when a large company encourages risk-taking, there are limits to how much money a bet on innovation can lose before the person responsible for it pays a career price.
America's proverbially litigious culture makes all players in the public arena, be they government agencies, companies or schools, intensely keen to delimit their responsibilities, and within those limits to minimise the risk of liability.
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Insurance companies must be absolutely proscribed from doing transactions that put its assets at risk, but which are outside the limits of normal well understood insurance practices.
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The company's properties are among the most diverse of the small oil and gas companies, and they are all in North America, which limits the kind of political risk competitors have to deal with when they do business overseas.
The financial crisis demonstrated the limits of ratings agencies to assess risk.
But that, in turn, can risk pushing an athlete's testosterone ratio above limits set by many international antidoping agencies, said Khalid Galant, chief executive of the South African Institute for Drug-Free Sport.
Each shock to the group, like the latest details in the health care overhaul bill regarding insurer spending limits, draws out more of the risk premium that has been venom to providers.
However, by spending time and energy aggressively pursuing marginal matters or pushing the law to its limits for weak cases, regulators run the risk of missing the boat on better cases that could benefit from additional attention.
But the stock's debut also shows the limits of the market's appetite for housing risk.
This system offers pre-trade order validation and risk aggregation as well as checking for fat finger mistakes and market limits, among other things.
If the possibility of large bonuses indeed generates excessive risk-taking, then bank stakeholders have ample incentive to adopt such limits without government coercion.
Bank of America "periodically reviews accounts based on risk" but declines to comment on how substantial balance payments affect spending limits, according to a spokesperson.
To do so limits our ability to make informed decisions and puts us at risk of letting others control our destinies rather than making our own.
Massachusetts ex-governor and former healthcare reformer himself, Mitt Romney, is advocating abolishing Obamacare altogether while endorsing reforms such as allowing individuals to purchase healthcare insurance across state lines, increasing the tax-free savings limits for medical expenses, and allowing small businesses to pool risk for insurance discounts.
"The peer-reviewed scientific evidence has overwhelmingly indicated that wireless devices, within the limits established by the FCC, do not pose a public health risk or cause any adverse health effects, " said a statement from John Walls, the group's vice president for public affairs.
What speed limits rely on are drivers' conscience and the preventative power of the risk of getting caught.
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