JPMorgan executives may have learned of the impending disaster with their London Whale trade from articles in the WSJ and Bloomberg. This from the company that more or less invented risk management and were supposed to be expert at it. Clearly their risk management was and is mostly nonexistent.
This is how Wall Street now operates; reckless, amoral, oblivious to financial responsibility, always pushing for more risk which in their myopic view means more profit – except when it doesn’t.  Then they force the government through the politicians and regulatory agencies they have corrupted to give them more money. This isn’t capitalism, this is theft.
Thew TBTF banks are too big and too irresponsible to live. They must be broken up and the crony capitalism they typify must be smashed. Really folks, it’s us or them.
Sure they knew the risk. Thats why they operated outside the scope of US regulators. As you say, they knew, they just didn’t care.
JPM CEO Dimon is on the board of the Federal Reserve that is ‘investigating’ what happened.Â
We need tougher laws on financial crimes in which those responsible can’t hide behind corporations and get off with at the very least a fine and no jail time. We need more regulation on Wall Street and less regulation on Main Street. Remember not so long ago when Corporations were deemed by the Supreme Court to be people? Well they should go to jail for their crimes, just like people do.