Archangel Problems: The SEC and Corporate Liability

Much ink has been spilled about the so-called "London Whale" scandal involving JPMorgan Chase & Co. that occurred in 2012 not surprisingly, given that the scandal is an accessible reference point in the leitmotif of corporate law and finance post-2008. But the London Whale case is more than that. It is a timely and illustrative example of some challenging and important problems facing government regulators in today's financial markets. In particular, the London Whale case demonstrates that the Securities and Exchange Commission, the United States' chief regulator of the nation's financial markets, is increasingly a part of the problem rather than the solution. This Note examines the London Whale case in this light by taking a closer look at the implications the case has for America's changing financial markets and for the Securities and Exchange Commission's role in those markets.