OCC Said to Admit Missing JPMorgan’s VaR Change in Probe
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The U.S. Office of the Comptroller of the Currency told lawmakers it missed changes to JPMorgan Chase & Co.’s risk-tracking system that could have alerted the watchdog sooner to the lender’s mounting derivatives bets, a person with direct knowledge of the matter said.
The OCC described the lapse in a report sent in last year’s second half to the Senate Permanent Subcommittee on Investigations, said two people, requesting anonymity because the discussions aren’t public. The congressional panel is set to release its own findings in coming weeks after examining how JPMorgan and regulators handled the bank’s botched trades, which resulted in losses exceeding $6.2 billion in the first nine months of 2012.