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

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Mr. Macris: “… Javier has, like, you know, sort of, you know, some, you know,
feedback, and you know, issues, you know, with the dealers. …”
Mr. Pinto: “I should say that it’s a situation where I need to do a formal investigation.
And, really, if Javier is fantasizing about this, he’s going to really, he will, he will have a
ba-, a hard time here. I mean, if he’s right, I need to fire a lot of people. …”
Mr. Macris: “Yeah, exactly, you know, I mean, I’m not on that page so much. Like, I
don’t disagree with you. You know, this elevation is not my style, right?”
Mr. Pinto: “From what I understand, how we got here, honestly, I don’t care. What I
see, is that it is an accusation that the investment bank, with someone leaking the position
of CIO, is acting against CIO on mismarking the books to damage CIO. ….”
Mr. Macris: “No, it’s not, that is not to my understanding. My understanding is, listen,
I, yeah, I don’t know. These are very aggressive comments. … I don’t know how … this
has become ... an issue of disciplinary action ….”
Mr. Pinto: Yeah, that’s fine. But that, at the moment what it is, is a real accusation. It’s
not that a concern that you may have for the future. And the way that the people think,
over this side, is someone in my group, did something wrong. Either mismarked the
books or used information that they should have not used to trade against your position
and acted against the benefit of the, to harm the bank. So that is what is floating
around.” 733
Mr. Pinto then questioned Mr. Martin about the accusations against the Investment Bank.
Mr. Pinto: “So my question is, there is something that DID happen, that in any shape or
form, you think that our investment bank is trading against your position, because the
position was leaked in some weird form to them?”
Mr. Martin-Artajo: “Ok, I don’t think that there is anything here that has happened that
is of, of a serious nature. What I think is happening here, that is of a serious nature, is
that what can happen with the marks that we get from the investment bank. Ok?”
Mr. Pinto: (laughs) “… So now we go to the marks. Have you got any, we don’t have
any collateral disputes, so, or very little ones. Have you, have you, can you see, any of
the marks, that they are deliberately un-, mismarked to hurt your position? ...”
Mr. Martin-Artajo: “Ok, what happens is that, every time we put a trade on, I get, you
know, I get, sort of like an immediate ask from, from the dealer into the position that we
just traded, right? So, I get evidence that they have access either to ICE or to some other
way to look at what we do and you know, I am concerned about that …?”
733 3/23/2012 Subcommittee transcription of recorded telephone conversation between Achilles Macris and Javier
Martin-Artajo, CIO, and Daniel Pinto, Investment Bank, JPM-CIO-PSI-A 0000140.