Double VAR breach in Q2 adds $4.1bn to JP Morgan’s market RWAs

- By Lorenzo Migliorato
- 13 Aug 2025

JP Morgan twice exceeded its regulatory value-at-risk during backtesting in the three months to end-June, triggering its first capital add-on in three years.

On 25 of the quarter’s 65 trading days, volatility tipped the bank’s trading portfolio – as valued at the close of the previous day – into a loss. On two of those days, losses overshot the VAR forecast by as much as 50%.

These two backtesting

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