May

11

There are some fun "facts" and observations in the JPM 2011 Annual Report:

p. 159: Chief Investment Office ("CIO") VaR in 2011: Avg: 57 Min: 30 Max: 80

(That's $mil)

On p 108, Treasury and CIO (together, whatever that means)

Security gains: in 2011, 2010, 2009 $ 1,385 2,897 1,147

Avg Portfolio: $ 330,885 323,673 324,037

So supposedly they had 57 mil at risk on a 330 bil (perhaps) porfolio while making 1-3 billion in profit.

The 57 mil sounds "funny" for the lack of a better word, but a $2 bil loss doesn't sound like it's a lot compared to the portfolio size, and not totally unexpected given the past gain.

On a separate note, the guy running the unit is named "Achilles" and he has a 6 foot photo of a missile in flight on his wall. He preferred to hire Greeks, and endearing quality, although Bruno seems fully French. What could go wrong?

It's also interesting that if you trace "the story", it really broke around April 6th.

Or as you can read in the comments to this video even before, with various Bloomberg and other "booster shots" on April 13th but it took this long to come to fruition.

The JPM stock broke a pretty steady uptrend on April 3rd.

You can also find that the woman who ran the CIO office (not sure how she shared power with Achilles) was one of the highest paid JPM executives for several years running making around $15 mil per year. 2011 was a down year for her.


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