JP Morgan loss was bungled attempt to cut Basel III RWAs, says Dimon

Loss-making unit's RWAs would have tripled under Basel III, JP Morgan chief executive says - but attempting to cut capital burden made its hedges more complex

dimon

An attempt to reduce risk-weighted assets (RWAs), coupled with a change to a value-at-risk model, was behind the $2 billion credit trading loss reported by JP Morgan last month, the bank's chief executive testified yesterday.

Appearing before the Senate Committee on Banking, Housing and Urban Affairs in Washington, DC, Jamie Dimon claimed the trading strategy – described as a hedge – changed in nature as the bank tried to cut RWA numbers at the loss-making chief investment office (CIO).

"Under

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Register

Want to know what’s included in our free membership? Click here

This address will be used to create your account

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here