Skip to main content


March 29, 2013

JPMorgan Tells SEC New VaR Model Didn’t Require Prior Disclosure

“JPMorgan Chase & Co. (JPM), facing criticism that it misled investors about a change to a risk model as trades backfired last year, told U.S. regulators that the bank wasn’t obligated to disclose the move until May.

While there was an “interim change” to the lender’s so- called value-at-risk model during the first three months of 2012, that adjustment had been reversed by the time the company filed its quarterly report in May, then-Chief Financial Officer Douglas Braunstein told the Securities and Exchange Commission in a Dec. 3 letter that was released yesterday.

“As a result, the firm believes there was no model change within the meaning of” securities-disclosure laws, he wrote.

The alteration to the model in January 2012 has been blamed for exacerbating trading losses that exceeded $6.2 billion last year. The bank disclosed the change and initial losses of about $2 billion in a May 10 regulatory filing, almost a month after reporting first-quarter results.”


Read full Bloomberg article here

In the News


For media inquiries, please contact us at or 202-618-6433.

Contact Us

For media inquiries, please contact or 202-618-6433.

To sign up for our email newsletter, please visit this page.

This field is for validation purposes and should be left unchanged.

Sign Up — Stay Informed With Our Monthly Newsletter

"* (Required)" indicates required fields

This field is for validation purposes and should be left unchanged.

For media inquiries,

please contact or 202-618-6433.


Help us fight for the public interest in our financial markets, protecting Main Street from Wall Street and avoiding another costly financial collapse and economic crisis, by making a donation today.

Donate Today