When
the crew of Apollo 13 contacted Mission Control in April 1970 there was no
ambiguity. Following an explosion the crew faced a potential catastrophic situation
which they quickly identified and a successful course of action was
implemented.
Contrast this to
the situation at J.P. Morgan when in May they announced “markets we have a
problem” at that time they estimated losses at approximately $2bn.
Subsequently JPMorgan Chase has raised its estimate of the value of its
recent losses from trading in complex financial derivatives to $4.4bn (£2.8bn).
The bank also said it had found evidence that some traders may have been
trying to hide their losses.
The bank said it would restate its results from the previous three
months because it had made $459m less than it thought.
It seems almost daily we are receiving reports of financial
mismanagement and sheer incompetence on a level that beggars belief.
Not only would the internal controls of these institutions appear
seriously deficient but there is a question mark concerning the obvious lack of
professionalism on behalf of the independent auditors.
It is fast becoming a question of whose accounts can you trust?
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