Is it not true that when a derivatives portfolio gets to be that big that there is a special danger?

The Whale Trade issue is considered closed--email went out to Senior Management yesterday.

You think that the average listener to that statement would think that what you were referring to was some strategy that was adopted, I do not know, months before or a year before?

Now, it seems to me that the numbers tell the story, just as the OCC examiner told us.

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

We recommend that the OCC tell banks to use independent pricing services to remove the temptation from their own employees to tweak marks.

The Model Review Group required only limited backtesting of the new model. . . . That is No. 1. It was critical of that limited backtesting.

And when he testified that the SCP was to protect against Scenarios 2 and 4, you go all the way over to number 10 to try to find some scenario in which it might be helpful.

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

That creates an impression which is not true.

He was just pursuing a mathematical interest. He was not operating in furtherance of the bank's goals?

the Synthetic Credit Portfolio was not reducing the bank's risks but was increasing them?

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

The responsibility would lie first and foremost with management, to have the proper risk systems and controls, proper reporting.

Now, in May 2012, after the media disclosure of the whale trades, the bank determined the new VaR model was not portraying the SCP's risk accurately.

What we have seen during this investigation is the evidence that JPMorgan piled on risk, broke risk limits, hid losses, manipulated models, dodged oversight, misinformed the public.

Would you call that a high-risk approach?

I am not talking about what is on the tapes. I am talking about the shift in the way these marks are made.

However, the GAO says, the DHS reports that the terrorist threat on the Northern border is higher.

It seems to me that it is a much easier border to cross illegally than the Mexican border.

This border is a source of a greater terrorist threat than the Mexican border.

Well, we appreciate your taking the time to come to the border with Canada, which is an amazing border in a lot of ways.

Historically, the United States has focused attention and resources primarily on the U.S. border with Mexico.

I remain hopeful we can develop such a bipartisan plan.

sequestration is already having an operational impact in the U.S. Central Command (CENTCOM) area