2012 JPMorgan Chase trading loss
In April and May 2012, large trading losses occurred at JPMorgan's Chief Investment Office, based on transactions booked through its London branch.[7][8] In February 2012, hedge fund insiders such as Boaz Weinstein of Saba Capital Management[9] became aware that the market in credit default swaps was possibly being affected by aggressive trading activities.[26][27] JPMorgan's bet was that credit markets would strengthen; the index is based on 121 investment grade bonds issued by North American corporations.[32] A report issued in January 2013 made the following "key observations"[33] In July 2017, U.S. prosecutors dropped criminal charges against two derivative traders from France and Spain after unsuccessful efforts to extradite them from their countries.[34] The trades occurred within the Chief Investment Office (CIO), where staff were reportedly "faithfully executing strategies demanded by the bank's risk management model".The company had been without a treasurer for five months during the time of the trades and had a relatively inexperienced executive, Irvin Goldman, in charge of risk management in the CIO.[37] The Volcker Rule, part of the Dodd–Frank Wall Street Reform and Consumer Protection Act, bans high-risk trading inside commercial banking and lending institutions.The Volcker rule is sometimes referred to as "a modern Glass-Steagall firewall that separates core banking system from higher-risk, hedge fund-style proprietary trading".