The decision to restate results was made one day before JPMorgan reported second-quarter net income of $4.96 billion, and after executives and lawyers interviewed employees, and reviewed thousands of hours of calls and about 1 million e- mails, Cavanagh said in the call last month.
JPMorgan ended synthetic trading at the chief investment office and transferred the rest of the position to the investment bank, executives said last month. The CIO retained an $11 billion short position in "basically liquid indexes" to hedge other credit assets, Dimon said during a July 13 meeting with analysts. Positions in Series 9 of the Markit CDX North America Investment Grade Index, a credit-swaps benchmark known as IG9 that's at the heart of much of the loss, were cut by 70 percent, he said.
'Down Substantially'
The bank transferred about $30 billion of risk-weighted assets from the CIO to the investment bank, an amount that's "down substantially" from an earlier peak and back to levels at the end of 2011, he said.
Ohio Attorney General Mike DeWine said July 14 that he's seeking to lead a proposed class-action against JPMorgan after state pension funds lost more than $27.5 million due to the "alleged fraud." Two funds for state employees held about 10.2 million JPMorgan shares as of March 31, data compiled by Bloomberg show.
Dimon transformed the unit in recent years to boost profit by buying higher-yielding assets such as structured credit, equities and derivatives, Bloomberg News reported on April 13, citing former employees.
Dimon dismissed initial news reports about the London operation as a "tempest in a teapot" when the bank reported first-quarter results April 13. He reversed course less than four weeks later, disclosing a $2 billion loss that he said could grow to $3 billion or more during the quarter.