jpmorganWith having to deal with so much money on a daily basis, it is understandable as to why some bankers are tempted to go rogue and try to get a little extra on the side. However more often than not these bankers get caught and in some cases have even landed the bank they’re working for in trouble.

In the case of JPMorgan, the company has racked up $36 billion in legal fees since the financial crisis and in a bid to stop rogue bankers, the company is rolling out a new program that has the ability to detect and identify rogue bankers before anything majorly bad happens. This is according to Sally Dewar who is the head of regulatory affairs in Europe who will also be overseeing the operation.

How this works is that the algorithm will look for clues such as whether employees skip compliance classes, violate personal trading rules, or breach market-risk limits. This information will be entered into the system which will then hopefully be able to identify and predict patterns of behavior down the road.

According to Dewar, “It’s very difficult for a business head to take what could be hundreds of data points and start to draw any themes about a particular desk or trader. The idea is to refine those data points to help predict patterns of behavior.” This new system is currently being tested in the trading business before rolling out throughout the global investment-banking and asset-management divisions by 2016.

Filed in General..

Discover more from Ubergizmo

Subscribe now to keep reading and get access to the full archive.

Continue reading