JPMORGAN CHASE WHALE TRADES: A CASE HISTORY OF DERIVATIVES RISKS AND ABUSES

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you know, on the run? And now it seems like everybody says no we don’t, we didn’t
know what we were doing .…”
Mr. Martin-Artajo: “No, no, no. I spoke with Ina. The reason I told her, the reason
I’m doing that is to defend the position, okay? We can reduce that [RWA]. I just didn’t
want the investment bank to roll over us, okay? This 731
has increased the book by 25 or
26 billion of RWA which is freaking them out. … So this is going all the way up, man,
just, just for you to know. Achilles and I, we’ve raised this issue to Ashley Bacon and
he’s going to talk to [Chief Risk Officer John] Hogan and he’s going to talk to Daniel
Pinto and he’s going to talk to Guy America, okay? So we’re escalating the problem
here, all the way up, okay?”
Mr. Stephan: “Okay.”
Mr. Martin-Artajo: “The issue here is that the investment bank is manipulating the
prices. They want us out of – you know how valuable the IG9 position is, right?”
Mr. Stephan: “I know.”
Mr. Martin-Artajo: “And we have a lot of it, okay? So it’s almost they are trying to
squeeze us out. … We have a good position, it’s not performing and we are getting
paranoid here, okay? … But this is out of my control or Achilles’ control now. This is
Ina. Ina has to decide this with, with, with whoever it is.”
Mr. Stephan: “Jes Staley.”
Mr. Martin-Artajo: “With Jes, basically. … They [the Investment Bank] are not
trading volume. They are just avoiding us, okay? They are just giving us bad marks. So
they are manipulating the market and we have to stop it because now it’s coming to me
from the market. The market is asking us what … are we doing? Okay? They think that
we have a large position. Okay? And, you know, that’s the last thing you want.”
That same day, March 23, Mr. Pinto spoke with Achilles Macris about the accusations
against the Investment Bank. 732
During the conversation, Mr. Macris began to retreat.
Mr. Macris: “So we are acting after Ina’s instruction, you know, who, you know, wants
to talk to [John] Hogan about it ….”
Mr. Pinto: “Ok, well then I need to talk to Hogan too. … [W]e don’t have any
collateral, significant collateral disputes with anyone. I will, I’m trying to … really check
on all of the valuations of the positions. …”
731 Mr. Martin-Artajo was referring to several recent large trades by the CIO, including a $9 billion purchase of one
credit index and a $14 billion purchase of another, for a total of $23 billion.
732 3/23/2012 Subcommittee transcription of recorded telephone conversation among Achilles Macris and Javier
Martin-Artajo, CIO, and Daniel Pinto, Investment Bank, JPM-CIO-PSI-A 0000140.