NY Fed faulted in JPMorgan’s ‘London Whale’ debacle

William Dudley was no Captain Ahab.

The New York Federal Reserve was too swa🀅mped with work to track down JPMorgan’s disastrous “London Whale” trade and should have coordinated with other regulators, the central bank’s inspector general said in a repo🦩rt.

The New 🦂York Fed, which has been run by Dudley since 2009, had to rel🎀y on JPMorgan’s internal auditors and another regulator, the Office of the Comptroller of the Currency, because it was spread so thin, according to the report released on Tuesday.

Regulators at the New York Fed should have realized that they were too understaffed to properly monitor the bank, the report s💫aid.

“We believe that these practical limitation should have increased FRB ൲New York’s urgency to initiative conversations with the OCC,” the Fed’s Office of Inspector General wrote.

The New York Fed didn’t comment.

The report is another black eye for the New York Fed. Last month, Carmen Segara, a former bank examiner for the New York Fed, released secretly-recorded tapes thaဣt depicted her co-workers as differential to the big banks.

JPMorgan lost about $6 billion on the wron𝕴g end of a complicated derivatives tradꦉe in 2012 that originated in the bank’s chief investment office in London.

The bank’s position was so monstro꧃us that the trader associated with it, Bruno Iksil, was dubbed the “London Whale.”

The bank was fined more than $1 b🥀illion by US and UK regulators for the risky trade, which fueled concerns about lax oversight in the wake of the financial crisis.

When the scandal first surfaced, CEO Jamie Dimon famously called it a “tempest in a tꦇeapot” but later admitted it w⛎as an “egregious mistake.”

The full report has not been made publicly available beౠcause it contains proprietary infor🦋mation, according to the inspector general.