A Jump in Breaches

Mr. Levin focuses on a series of risk-limit breaches at JPMorgan over several months in 2011 and April 2012. In the fourth quarter of 2011, the senator notes, there were six breaches. In the first quarter of 2012, that number jumped to 170. And, he continues, in April alone, there were 160 breaches. Mr. Levin asks Mr. Weiland whether the huge jump in breaches is worrying. The former JPMorgan executive says that yes, it's "a worrisome pattern." But he adds that breaches and risk metrics can happen because the market moves away from a trading position. And by April, the JPMorgan team was in "crisis mode."