London Whale Trades, Regulations

Would Better Regulations Have Prevented the London Whale Trades? : The New Yorker: "The risk-measurement tool known as “Value at Risk,” or VaR, emerged from the seismic changes that shook the financial industry during the last two decades of the twentieth century. Commercial and investment banks were merging, going public, and increasing in scale. Just as these financial supermarkets began attracting ever-larger pools of capital from investors, there was an explosion of trading in exotic and complicated securities based on mortgages and other consumer debt. After the stock-market crash of 1987, banks became much more interested in developing more sophisticated risk-control mechanisms for their increasingly large and volatile portfolios. ..." (read more at link above) 

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