How JPMorgan’s added risk led to CIO unit loss: Timeline

June 12 (Bloomberg) -- Jamie Dimon, chief executive officer of JPMorgan Chase & Co., is scheduled to testify tomorrow before Congress about the bank’s $2 billion loss on derivatives trading at its chief investment office. Here’s a chronology of events leading to the disclosure and the aftermath.

Some dates are approximate and are subject to revision as more information becomes available.


Nov. 13: JPMorgan completes takeover of Bank One Corp., run by Jamie Dimon. He becomes CEO of JPMorgan the following year. Global treasury unit, led by Ina Drew, is broken out of JPMorgan’s investment bank and expands to manage combined firm’s more diverse balance sheet. Drew begins reporting to Dimon at year-end.


February: Ina Drew’s title changes to chief investment officer.

Date unknown: Bruno Iksil, whose trades play a central role in adding risk to CIO, joins JPMorgan.


Jan. 18: Dimon says value-at-risk, or VaR, is “a very bad number if you think it actually represents risk.” The number probably will climb, according to Dimon, who says, “We are going to build our businesses, and therefore, over time, we’ll be taking more aggregate risk.”

Date unknown: Achilles Macris joins JPMorgan, becomes leader of strategy that builds credit risk in CIO.


Date unknown: CIO bets against an index of subprime mortgage bonds and earns about $1 billion.

Nov. 26: Barry Zubrow becomes chief risk officer. Also late in the year, Irvin Goldman, brother-in-law of Zubrow, loses job at Cantor Fitzgerald LP after money-losing bets.

Dec. 31: Securities held in JPMorgan’s CIO and treasury reported at $76 billion. Corporate division, which includes CIO and treasury results, has net loss of $150 million for the year.


Mar. 16: Assets managed by CIO expand as JPMorgan agrees to buy Bear Stearns Cos.

Sept. 25: Assets managed by CIO increase again as JPMorgan buys Washington Mutual.

November: Macris’s group begins placing bigger bets, becoming the biggest buyer in some markets. A CIO trader buys about $1.1 billion of AAA-rated portions of collateralized loan obligations in November-December.

Dec. 31: Corporate division finishes year with $1.5 billion profit.

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