Fed Watchdog Criticizes Scrutiny of JPMorgan London Whale

The Federal Reserve Bank of New York botched oversight of the JPMorgan Chase & Co. office that suffered $6.2 billion in trading losses attributed to the so-called London Whale, a watchdog report showed.

The report from the Fed board’s Office of Inspector General said the New York Fed spotted risks in JPMorgan’s chief investment office and planned examinations in 2008, 2009 and 2010, while mishandling execution of those reviews and inter-agency coordination. It calls the failure a “missed opportunity.”