What was the cause of the London Whale trade and all its losses at JP Morgan? It’s simple. Blame it on chaos theory. From the sounds of today’s official report, that sure seems to be what the Board of Director’s “Task Force” did. It could happen to anybody. That’s the thing about “seemingly small” synthetic credit. It’s not as it seems and the losses could happen “to any one” and they still get paid in large and that’s largely the synthetic part.