Prior to that time, had you received regular information about the SCP portfolio?

Were you aware that it was 1,000 percent over the limit?

Was it a coincidence that it was done at that time?

In fact, it was increasing in size.

It turned out that was not true.

But it was a violation of the bank's policy.

But its general direction, its general theme is to lead to tougher risk controls, is it not?

Yes, absolutely. And it is important for us as the regulator to know what the actual market is and be informed on a timely basis.

I would have considered that is the wrong thing to do.

Does it pose special risk because there is no tangible asset or revenue stream to stop losses?

the bank needs to provide true, accurate, independent marks every day.

Jamie Dimon testified to the Senate that the SCP was to protect against a financial crisis

Is this because there is not enough people at the OCC to read these reports? How does it happen?

[A]ll those positions are fully transparent to the regulators.

Well, if its purpose is to do exactly what I said, would that trouble you?

We will have 12-minute rounds, if that is OK.

And I would hope that the guidance that you and other folks would give would be against tweaking, but being whatever is accurate.

That kind of tone I am afraid went to the top.

Is it common inside JPMorgan to change your pricing practices when the losses start piling up in order to minimize the losses?

We identified serious risk management weaknesses throughout the entire Firm, and they became particularly evident in the CIO office.

We recommend requiring banks to identify all internal investment portfolios that include derivatives over a specified notional size.

So when he said in his email that you said that the current losses are 1.6, what you are saying is you told him that the 1.6 was current in the second-quarter-to-date.

So there intention--was not an intention, you said, on an ongoing basis to optimize the book.

If you had known that, or if you had known that, Mr. Waterhouse, would that have affected you?

But you knew that these trades were being made day-to-day.