JPMorgan CEO Jamie Dimon may not want to discuss it during his testimony to the US Senate Banking Committee but the 2 billion dollar loss wracked-up by the so-called "LondonWhale" has re-ignited the industry debate over one of its key risk management theories.
Dimon's appearance before the committee, led by Senator Tim Johnson, sees him defend the banks practices after the group revealed earlier this year that Bruno Iksil, an employee at the banks' Chief Investment Office's or CIO, lost the colossal amount on bad bets.
One of the key criticisms Dimon, JP Morgan and its CIO faces is the flawed, inadequate or misuse of value-at-risk, known as VAR.
VAR is a broad calculation model, used by trading firms and investment banks to measure the potential losses of a portfolio.
During the period of the London Whale trades, the risk management model was apparently flawed and is said to be one of the core reasons for the event.
Coupled with that, Dimon infamously dismissed the use of VaR in 2006 and in 2009, saying he didn't "pay that much attention to VaR."
Such comments will be called into question when Dimon explains how one of the world's largest investment banks could facilitate such a huge loss.
Written and Presented by Lianna Brinded