Matthew graduated from the University of Wisconsin-Madison with a bachelor of science in Economics. He is a former derivatives specialist, a CFA charterholder and a member of the CFA Institute. His tenacity in pursuing the CFA charter speaks to his character and determination in the pursuit of excellence. In addition, he is licensed as a Certified Public Accountant and a member of the AICPA; and he holds the CFP certification recognized as the standard of excellence for personal financial planning.
In light of JP Morgan’s $2 Billion blunder this is a very crucial question we all should be asking ourselves. If a bank can’t even manage its own finances, what makes you think they can manage your finances?
JPMorgan Chase CEO Jamie Dimon said the firm suffered a $2 billion trading loss blaming an “egregious” failure in the firm’s risk management. JP Morgan’s $2 billion dollar blunder has its roots in something called Value at Risk (VAR) which is a measure of how much a company estimates it could lose on a portfolio of securities on 95 percent of days. It’s a model that supposedly measures the boundaries of risk in a bank, a portfolio, or a hedge fund under “normal” market conditions. Its main selling point is that it can simply express risk as a single number or dollar figure and ignore the greater complexities of financial markets. Continue reading →