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He said on Thursday that the failed trading strategy at JPMorgan's Chief Investment Office is "the antithesis of the kind of ethic and approach we want to take in banking".
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It reduces the operational risk of failed trades.
The failed trade was a problem for Deutsche Bank.
The failed trade also tarnished the Nets' owner, Mikhail D. Prokhorov, and general manager, Billy King.
Not the least of their concerns is the number of failed trades.
Every failed trade makes the N.B.A. look worse and puts pressure on Stern to make a trade so spectacular that no one can criticize it.
It can result in failed trades if investors sell shares without properly checking that they will be able to obtain them before their trade settles.
There are plenty on so-called "expected" losses, such as predictable levels of credit-card abuse, failed trades, even petty fraud.
Some question the link between failed trades and naked shorting.Nevertheless, the release of the e-mail excerpts will have done the brokers no favours.
Then the three institutions persuaded the Federal Reserve Bank of New York to bail them out by giving A.I.G. two rescue loans, which were used to unwind hundreds of failed trades.
The president of one of Merrill's stock-clearing businesses responds to internal concerns about failed trades thus: "Fuck the compliance area procedures, schmecedures".
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com