JPMorgan Chase & Co.’s biggest U.S. competitors say their corporate investment offices avoid the use of derivatives that led to the bank’s $2 billion loss and buy fewer bonds exposed to credit risk.
Bank of America Corp., Citigroup Inc. and Wells Fargo & Co. say the offices don’t trade credit-default swaps on indexes linked to the health of companies. JPMorgan is said to have amassed positions in such indexes that were so large they drove price moves in the $10 trillion market.
JPMorgan has about 30 percent of its holdings in U.S. Treasuries and bonds issued or guaranteed by U.S. government-backed agencies, according to its filings. That compares with 87 percent at Bank of America, 50 percent at Citigroup and 47 percent at Wells Fargo.
JPMorgan’s holdings are overseen by the chief investment office, where the flawed derivatives trades took place. The former head of the unit, Ina Drew, reported directly to Dimon until she resigned last week.
Wells Fargo also shuns such bets, Mary Eshet, a company spokeswoman, said in an e-mailed statement.