Sorry guys some background info for those not aware
http://en.wikipedia.org/wiki/2012_JPMorgan_Chase_trading_loss
In February 2012, hedge fund insiders such as Boaz Weinstein of Saba Capital Management[5][6] became aware that the market in credit default swaps was possibly being affected by aggressive trading activities. The source of the unusual activity turned out to be Bruno Iksil, a trader for JPMorgan Chase & Co. Heavy opposing bets to his positions had been made by traders, including another branch of JPMorgan, who purchased the derivatives that JPMorgan was selling in such high volume.
[7][8] Early reports were denied and minimized by the firm in an attempt to minimize exposure.[9] Major losses of $2 billion were reported by the firm in May 2012 in relationship to these trades; on July 13, 2012, the total loss was updated to $5.8 billion with the addition of a $4.4 billion loss in the second quarter and recalculation of a loss of $1.4 billion for the first quarter.
A spokesman for the firm projected total losses could be more than $7 billion.[10] The disclosure, which resulted in headlines in the media, did not disclose the exact nature of the trading involved, which remained in progress as of May 16, 2012 as JPMorgan's losses mounted and other traders sought to profit or avoid losses resulting from JPMorgan's positions.[11][12]
As of June 28, 2012 JPMorgan's positions were continuing to produce losses which could total as much as $9 billion under worst case scenarios.[13] The trades were possibly related to CDX IG 9, a credit default swap index based on the default risk of major U.S. corporations[14][15] that has been described as a "derivative of a derivative".[16][17]
On the company's emergency conference call, JPMorgan Chase CEO Jamie Dimon said the strategy was "flawed, complex, poorly reviewed, poorly executed, and poorly monitored".[18] The episode is being investigated by the Federal Reserve, the SEC, and the FBI.[19]
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