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It states that Jon S. Corzine, MF Global's former chief executive, as well as a former senator and governor of Jersey and a former head of Goldman Sachs, "knew, or should have known" about the "glaring deficiencies" in the firm's internal risk controls that allowed it to careen out of control.
Not only did the asset management business report to him but he also had direct responsibility over the risk controls that were in place there.
In addition to Cummings, the FSA also censured the Bank of Scotland arm of HBOS for not have having risk controls that could keep up with its pace of growth in the face of a deteriorating economy.
"We believe that Bear Stearns misrepresented the risk to investors in the hedge fund, misrepresented the extent of risk controls that were in place to cut losses and misrepresented performance on conference calls to avoid a run on the bank," he said.
When asked about any decision to exempt the chief investment office, or C.I.O., from risk controls that applied to other parts of JPMorgan, Mr. Dimon said: "The first error we had made was that the C.I.O. unit had done so well for so long that there was a sense of complacency".
The changes to be implemented include circuit breakers to stop trading when a given equity experiences high intraday price volatility, as well as risk controls that are put into play during the pre-trade phase.
Similar(53)
Control measures should be adapted to suite the type of infection present bearing in mind that for serotype Typhimurium the control of animal source risk factors should be considered, whereas for the other serotypes is it the environmental source risk control that is important.
When asked about Mr. Greenberg's contention that risk controls at A.I.G. had loosened after his departure, Mr. Sullivan argued that risk controls had actually tightened since then.
Regardless of Moore's devastating submission, it has been clear for years that risk controls at banks had gone out of the window.
We would set up an investment program that would match his unusually long retirement period (after all, he is retiring at just 52) with proper risk controls to ensure that he does not outlive his funds.
In 2011, before the big trading loss, CtW met with senior bank executives, warning that risk controls needed to be improved.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com