ADVENTURES IN OVERSIGHT

  From NYT's Jessica Silver-Greenberg and Ben Protess: “The Federal Reserve Bank of New York in mid-2011 replaced virtually all of its roughly 40 examiners at JPMorgan Chase to bolster the team’s expertise and prevent regulators from forming cozy ties with executives. ... But those changes left the New York Fed’s front-line examiners without deep knowledge of JPMorgan’s operations for a brief yet critical time ... Forced to play catch-up, the examiners struggled to understand the inner workings of a powerful investment unit.”

 Shake-Up at New York Fed Is Said to Cloud View of JPMorgan's Risk - NYTimes.com

Dimon said last month that the bank would be “solidly profitable” for the quarter even after the trading loss.
JPMorgan probably offset some of the loss with securities sales as well as gains from a so-called debt-valuation adjustment, said Charles Peabody, an analyst at Portales Partners LLC. Peabody estimated that DVA gains, which are paper profits that boost earnings when the cost of a company’s debt falls, will be $500 million.

Dimon Risk Reputation on Line as JPMorgan Faces Analysts - Bloomberg