On May 10th, JPMorgan Chase revealed a $2 billion dollar trading loss in the bank’s Chief Investment Office in London related to derivatives trades from the so-called “London Whale.” 

And it only got worse throughout the summer.  

During the month of June, the bank’s CEO Jamie Dimon was grilled before the Senate Banking Committee and the House Financial Services Committee.  He maintained that it was an ”isolated incident” and said “senior management and myself should have better monitored the CIO office.” 

What’s more is when the bank released its Q2 earnings results on July 13th, it was revealed that the trading loss was $5.8 billion.  The bank also had to restate its Q1 net income saying it was $459 less than previously reported. 

Facebook was one of the most highly-anticipated initial public offerings of all time, but its debut as a publicly traded company on the Nasdaq ended up being plagued by delays and glitches. 

Customers including Knight Capital, Citadel’s retail facing arm and Citi claimed to have lost millions from trading shares of the social network. 

What’s more is Facebook shares were priced at $38 a piece and these days they’re trading below $22 a share.

Reuters Alistair Barr reported that research analysts at Facebook’s lead underwriters (Morgan Stanley, Goldman Sachs and JPMorgan) slashed their earnings estimates for the social network during the IPO roadshow and that information was then shared with institutional investors. 

At the time, our Editor-In-Chief Henry Blodget who has more than 20 years experience in the tech IPO business, called it “a highly unusual and negative event.”

What’s more Massachusetts Secretary of Commonwealth subpoenaed the bank over those analyst disclosures.  Morgan Stanley is also facing a shareholder lawsuit. 

Following the Facebook IPO fiasco, Morgan Stanley’s CEO James Gorman defended his bank on CNBC saying they acted “with great integrity.”  He added that Facebook investors will just have to be a little bit patient.