FROM: U.S. DEPARTMENT OF LABOR
SEASONALLY ADJUSTED DATA
In the week ending October 12, the advance figure for seasonally adjusted initial claims was 358,000, a decrease of 15,000 from the previous week's revised figure of 373,000. The 4-week moving average was 336,500, an increase of 11,750 from the previous week's revised average of 324,750.
The advance seasonally adjusted insured unemployment rate was 2.2 percent for the week ending October 5, unchanged from the prior week's unrevised rate. The advance number for seasonally adjusted insured unemployment during the week ending October 5 was 2,859,000, a decrease of 43,000 from the preceding week's revised level of 2,902,000. The 4-week moving average was 2,875,750, an increase of 17,750 from the preceding week's revised average of 2,858,000.
UNADJUSTED DATA
The advance number of actual initial claims under state programs, unadjusted, totaled 357,041 in the week ending October 12, an increase of 20,902 from the previous week. There were 362,730 initial claims in the comparable week in 2012.
The advance unadjusted insured unemployment rate was 1.9 percent during the week ending October 5, unchanged from the prior week. The advance unadjusted number for persons claiming UI benefits in state programs totaled 2,418,329, a decrease of 56,979 from the preceding week. A year earlier, the rate was 2.2 percent and the volume was 2,753,759.
The total number of people claiming benefits in all programs for the week ending September 28 was 3,928,697, a decrease of 82,725 from the previous week. There were 5,001,985 persons claiming benefits in all programs in the comparable week in 2012.
No state was triggered "on" the Extended Benefits program during the week ending September 28.
As a result of the lapse in federal appropriations, initial claims for UI benefits filed by former Federal civilian employees (UCFE) totaled 70,068 in the week ending October 5, an increase of 68,677 from the prior week. The states with the highest number of UCFE claims were Maryland (17,368), Texas (7,191), Pennsylvania (4,416), Utah (3,978) and Washington (3,380). There were 3,382 initial claims filed by newly discharged veterans, an increase of 1,285 from the preceding week.
There were 19,586 former Federal civilian employees claiming UI benefits for the week ending September 28, a decrease of 334 from the previous week. Newly discharged veterans claiming benefits totaled 34,934, an increase of 3,293 from the prior week.
States reported 1,379,118 persons claiming Emergency Unemployment Compensation (EUC) benefits for the week ending September 28, a decrease of 46,366 from the prior week. There were 2,098,793 persons claiming EUC in the comparable week in 2012. EUC weekly claims include first, second, third, and fourth tier activity.
The highest insured unemployment rates in the week ending October 5 were in Puerto Rico (3.9), Alaska (3.5), Virgin Islands (3.4), New Jersey (3.0), California (2.9), Connecticut (2.7), Pennsylvania (2.6), Illinois (2.3), Nevada (2.3), New York (2.3), and Oregon (2.3).
The largest increases in initial claims for the week ending October 5 were in California (+33,654), Maryland (+4,609), Ohio (+4,122), Michigan (+4,066), and Virginia (+3,927), while the largest decreases were in Oregon (-149), Puerto Rico (-77), Missouri (-50) and Nebraska (-26).
Thursday, October 17, 2013
UNEMPLOYMENT INSURANCE WEEKLY CLAIMS REPORT FOR WEEK ENDING OCTOBER 5, 2013
FROM: U.S. DEPARTMENT OF LABOR
SEASONALLY ADJUSTED DATA
In the week ending October 5, the advance figure for seasonally adjusted initial claims was 374,000, an increase of 66,000 from the previous week's unrevised figure of 308,000. The 4-week moving average was 325,000, an increase of 20,000 from the previous week's unrevised average of 305,000.
The advance seasonally adjusted insured unemployment rate was 2.2 percent for the week ending September 28, unchanged from the prior week's revised rate. The advance number for seasonally adjusted insured unemployment during the week ending September 28 was 2,905,000, a decrease of 16,000 from the preceding week's revised level of 2,921,000. The 4-week moving average was 2,858,750, an increase of 22,500 from the preceding week's revised average of 2,836,250.
UNADJUSTED DATA
The advance number of actual initial claims under state programs, unadjusted, totaled 336,849 in the week ending October 5, an increase of 84,616 from the previous week. There were 329,919 initial claims in the comparable week in 2012.
The advance unadjusted insured unemployment rate was 1.9 percent during the week ending September 28, unchanged from the prior week. The advance unadjusted number for persons claiming UI benefits in state programs totaled 2,478,333, a decrease of 36,220 from the preceding week. A year earlier, the rate was 2.2 percent and the volume was 2,785,230.
The total number of people claiming benefits in all programs for the week ending September 21 was 4,028,411, an increase of 25,956 from the previous week. There were 5,044,649 persons claiming benefits in all programs in the comparable week in 2012.
No state was triggered "on" the Extended Benefits program during the week ending September 21.
Initial claims for UI benefits filed by former Federal civilian employees totaled 1,391 in the week ending September 28, an increase of 359 from the prior week. There were 2,098 initial claims filed by newly discharged veterans, a decrease of 52 from the preceding week.
There were 19,918 former Federal civilian employees claiming UI benefits for the week ending September 21, a decrease of 81 from the previous week. Newly discharged veterans claiming benefits totaled 31,643, a decrease of 62 from the prior week.
States reported 1,442,484 persons claiming Emergency Unemployment Compensation (EUC) benefits for the week ending September 21, a decrease of 27,543 from the prior week. There were 2,106,072 persons claiming EUC in the comparable week in 2012. EUC weekly claims include first, second, third, and fourth tier activity.
The highest insured unemployment rates in the week ending September 28 were in Puerto Rico (4.0), Alaska (3.4), New Jersey (3.1), Virgin Islands (3.1), California (3.0), Connecticut (2.7), Pennsylvania (2.6), Illinois (2.4), Nevada (2.4), District of Columbia (2.3), and New York (2.3).
The largest increases in initial claims for the week ending September 28 were in Puerto Rico (+1,105), Oregon (+1,104), California (+1,045), Pennsylvania (+736), and Missouri (+561), while the largest decreases were in Michigan (-2,061), New York (-1,694), Florida (-1,349), Texas (-1,255), and labama (-1,008).
SEASONALLY ADJUSTED DATA
In the week ending October 5, the advance figure for seasonally adjusted initial claims was 374,000, an increase of 66,000 from the previous week's unrevised figure of 308,000. The 4-week moving average was 325,000, an increase of 20,000 from the previous week's unrevised average of 305,000.
The advance seasonally adjusted insured unemployment rate was 2.2 percent for the week ending September 28, unchanged from the prior week's revised rate. The advance number for seasonally adjusted insured unemployment during the week ending September 28 was 2,905,000, a decrease of 16,000 from the preceding week's revised level of 2,921,000. The 4-week moving average was 2,858,750, an increase of 22,500 from the preceding week's revised average of 2,836,250.
UNADJUSTED DATA
The advance number of actual initial claims under state programs, unadjusted, totaled 336,849 in the week ending October 5, an increase of 84,616 from the previous week. There were 329,919 initial claims in the comparable week in 2012.
The advance unadjusted insured unemployment rate was 1.9 percent during the week ending September 28, unchanged from the prior week. The advance unadjusted number for persons claiming UI benefits in state programs totaled 2,478,333, a decrease of 36,220 from the preceding week. A year earlier, the rate was 2.2 percent and the volume was 2,785,230.
The total number of people claiming benefits in all programs for the week ending September 21 was 4,028,411, an increase of 25,956 from the previous week. There were 5,044,649 persons claiming benefits in all programs in the comparable week in 2012.
No state was triggered "on" the Extended Benefits program during the week ending September 21.
Initial claims for UI benefits filed by former Federal civilian employees totaled 1,391 in the week ending September 28, an increase of 359 from the prior week. There were 2,098 initial claims filed by newly discharged veterans, a decrease of 52 from the preceding week.
There were 19,918 former Federal civilian employees claiming UI benefits for the week ending September 21, a decrease of 81 from the previous week. Newly discharged veterans claiming benefits totaled 31,643, a decrease of 62 from the prior week.
States reported 1,442,484 persons claiming Emergency Unemployment Compensation (EUC) benefits for the week ending September 21, a decrease of 27,543 from the prior week. There were 2,106,072 persons claiming EUC in the comparable week in 2012. EUC weekly claims include first, second, third, and fourth tier activity.
The highest insured unemployment rates in the week ending September 28 were in Puerto Rico (4.0), Alaska (3.4), New Jersey (3.1), Virgin Islands (3.1), California (3.0), Connecticut (2.7), Pennsylvania (2.6), Illinois (2.4), Nevada (2.4), District of Columbia (2.3), and New York (2.3).
The largest increases in initial claims for the week ending September 28 were in Puerto Rico (+1,105), Oregon (+1,104), California (+1,045), Pennsylvania (+736), and Missouri (+561), while the largest decreases were in Michigan (-2,061), New York (-1,694), Florida (-1,349), Texas (-1,255), and labama (-1,008).
MILITARY RECRUITING DURING THE SHUTDOWN
FROM: U.S. DEFENSE DEPARTMENT
Relationships Sustain Recruiting Through Shutdown
By Donna Miles
American Forces Press Service
WASHINGTON, Oct. 16, 2013 - During the first week of the partial government shutdown, recruiters at the Jacksonville Recruiting Battalion in Florida enlisted 88 new soldiers onto active duty and six others into the Army Reserve. The Air Force shipped 856 new airmen off to basic military training. The Navy enlisted 242 future sailors into the delayed entry program.
As of yesterday, the Marine Corps had already contracted with 2,732 new members – almost 97 percent of its goal for the entire month.
Military recruiters report that despite a long list of potential detractors – force reductions, budget cuts, sequestration and now, a partial government shutdown – the close community ties they have built have enabled recruiting to continue relatively unaffected.
As the Defense Department began identifying what operations could be curtailed during the shutdown, its recruiting operations remained almost sacrosanct.
That's because the effort to recruit the best and brightest into the military can't take a proverbial "time out," even in the face of government furloughs, several recruiters explained during interviews with American Forces Press Service.
Falling short of recruiting goals for just one month simply isn't an option because it can spill over into an entire recruiting year, they said. That can leave vacancies within designated training cycles and ultimately, manpower and capability gaps within the ranks.
"Simply put, the success of today's recruiting efforts will have a direct impact on the future force and fleet," said Navy Cdr. Wendy Snyder, public affairs officer for Navy Recruiting Command.
Regardless of how the military is sized in the future, every service branch needs to continue attracting new, high-quality members to remain strong and capable, she said. "The individuals we recruit today are tomorrow's leaders, so the mission of recruiting is paramount to our fleet readiness."
Air Force Commander Master Chief William Cavanaugh , the senior non-commissioned officer for Air Force Recruiting Service, called new recruits vital to ensuring the U.S. military remains the world's best.
"You can't sustain greatness without innovation, and innovation is nurtured by bringing new members onto your team, members from diverse backgrounds with different thought processes and experiences," he said.
That makes the recruiting mission important, even during a period of downsizing that typically follows the end of a conflict, said Army Col. Fred Johnson, recruiting operations director for Army Recruiting Command.
Regardless of how the military ultimately is sized, "we have to recruit and build the experience base with soldiers who will eventually lead our Army in the future," he said. "Our ranks must remain filled with qualified men and women with leadership skills, values and competence to face future challenges."
Similarly with the Marine Corps, which despite drawing down its end strength, needs to maintain a strong recruiting effort because 67 percent of the Corps consists of first-termers, reported Marine Capt. James Stanley, operations officer for Martine Corps Recruiting Command's plans and research section.
Falling short of recruiting goals in terms of quantity or quality could have a negative impact on the Marines' ability to fulfill combatant commanders' requirements, he said. But after the Corps exceeded its fiscal 2013 recruiting mission, Stanley said he is optimistic that it "is well positioned" to do so again this year.
Despite broad recognition of the importance of recruiting, some recruiters admit that the current impasse in Washington has sent the public a mixed message.
"When you look at the government shutdown and the different things that are happening in Washington, D.C., the immediate effect on recruiting opportunities is obviously a concern," said Army Lt. Col. Stephen Grabski, commander of the Jacksonville Recruiting Battalion that was among the Army's most successful in 2013. "We get a lot of questions from parents and the high school students that are really our primary customers about the impact of all this."
Budget constraints have added another wrinkle by forcing the services to cut many of their more visible outreach activities. "You are not going to see any large-scale photos of massive events happening anywhere in recruiting, but that is not the foundation of success," said Grabski.
"Our success is really based on the relationships that we have with the community and the interaction and support that we have with the members of the community," he said. "And because it is a relationship-based success, the shutdown and the national discussions are not having a tremendous effect."
Recruiters across the board say they are weathering what could be a very challenging recruiting environment thanks to close relationships they have built not just with potential applicants, but also their parents, teachers, coaches and community leaders who influence their decisions to join the military.
It's an effort that has continued throughout the shutdown – through social media and face-to-face interaction in local communities.
Air Force recruiters, for example, are frequently seen in their communities taking part in Habitat for Humanity projects and other volunteer programs, Cavanaugh reported.
"Our basic philosophical approach to recruiting is that if you meld into and become part of the community and show your involvement in that community, you will become an accepted member of that community and the folks in that community are going to see what you offer their children as a viable option," he said.
Similarly, the Army regularly sends recruiters to help fill needs community leaders identify, whether it's a conditioning coach for a local athletic team or a teacher's assistant in a classroom.
"I have combat medics stepping in and assisting with biology labs," Grabski said. "I have mechanics who have time in Baghdad fixing tanks, now sitting in a high school automotive classes."
Snyder called regular interactions between Navy recruiters and community and civic leaders and educators vital to the strong relationships that support recruiting efforts. "The daily engagements and conversations our recruiters have with young adults and influencers are critical to our mission of finding high-quality young men and women to join our Navy," she said.
She expressed concern that although the partial shutdown hasn't yet hurt recruiting, a sustained one that limits recruiters' long-term engagement opportunities could.
Regular interactions give recruiters an opportunity to demonstrate to potential applicants and their influencers alike what the military represents, and share insight into doors that military service can open up, the recruiters said.
"We are looking for a community's best and brightest so we can put forth the best Air Force we can for our nation," Cavenaugh said. "These relationships allow us to share the Air Force story on a personal level [and] sustain the public interest in serving."
"The impact our recruiters have on perceptions about our Navy is significant, which impacts an individual's decision to join," agreed Snyder. "The conversation the recruiter has may be the very first interaction that individual has ever had with a Navy sailor, so our daily conversations across the country matter."
Grabski said there is no better recruiting tool than proud servicemembers who exemplify the military's best.
"If I can put them into a high school setting and get them to interact with high school students, their leadership shines through in amazing ways," he said. "Students see what true leaders look like and they tend to gravitate toward that and follow it.
"And that is the foundation of recruiting success," Grabski said. "It is a 17-year-old high-school student looking at somebody with chevrons on their uniform, saying, 'You are showing me some great opportunities.'"
Relationships Sustain Recruiting Through Shutdown
By Donna Miles
American Forces Press Service
WASHINGTON, Oct. 16, 2013 - During the first week of the partial government shutdown, recruiters at the Jacksonville Recruiting Battalion in Florida enlisted 88 new soldiers onto active duty and six others into the Army Reserve. The Air Force shipped 856 new airmen off to basic military training. The Navy enlisted 242 future sailors into the delayed entry program.
As of yesterday, the Marine Corps had already contracted with 2,732 new members – almost 97 percent of its goal for the entire month.
Military recruiters report that despite a long list of potential detractors – force reductions, budget cuts, sequestration and now, a partial government shutdown – the close community ties they have built have enabled recruiting to continue relatively unaffected.
As the Defense Department began identifying what operations could be curtailed during the shutdown, its recruiting operations remained almost sacrosanct.
That's because the effort to recruit the best and brightest into the military can't take a proverbial "time out," even in the face of government furloughs, several recruiters explained during interviews with American Forces Press Service.
Falling short of recruiting goals for just one month simply isn't an option because it can spill over into an entire recruiting year, they said. That can leave vacancies within designated training cycles and ultimately, manpower and capability gaps within the ranks.
"Simply put, the success of today's recruiting efforts will have a direct impact on the future force and fleet," said Navy Cdr. Wendy Snyder, public affairs officer for Navy Recruiting Command.
Regardless of how the military is sized in the future, every service branch needs to continue attracting new, high-quality members to remain strong and capable, she said. "The individuals we recruit today are tomorrow's leaders, so the mission of recruiting is paramount to our fleet readiness."
Air Force Commander Master Chief William Cavanaugh , the senior non-commissioned officer for Air Force Recruiting Service, called new recruits vital to ensuring the U.S. military remains the world's best.
"You can't sustain greatness without innovation, and innovation is nurtured by bringing new members onto your team, members from diverse backgrounds with different thought processes and experiences," he said.
That makes the recruiting mission important, even during a period of downsizing that typically follows the end of a conflict, said Army Col. Fred Johnson, recruiting operations director for Army Recruiting Command.
Regardless of how the military ultimately is sized, "we have to recruit and build the experience base with soldiers who will eventually lead our Army in the future," he said. "Our ranks must remain filled with qualified men and women with leadership skills, values and competence to face future challenges."
Similarly with the Marine Corps, which despite drawing down its end strength, needs to maintain a strong recruiting effort because 67 percent of the Corps consists of first-termers, reported Marine Capt. James Stanley, operations officer for Martine Corps Recruiting Command's plans and research section.
Falling short of recruiting goals in terms of quantity or quality could have a negative impact on the Marines' ability to fulfill combatant commanders' requirements, he said. But after the Corps exceeded its fiscal 2013 recruiting mission, Stanley said he is optimistic that it "is well positioned" to do so again this year.
Despite broad recognition of the importance of recruiting, some recruiters admit that the current impasse in Washington has sent the public a mixed message.
"When you look at the government shutdown and the different things that are happening in Washington, D.C., the immediate effect on recruiting opportunities is obviously a concern," said Army Lt. Col. Stephen Grabski, commander of the Jacksonville Recruiting Battalion that was among the Army's most successful in 2013. "We get a lot of questions from parents and the high school students that are really our primary customers about the impact of all this."
Budget constraints have added another wrinkle by forcing the services to cut many of their more visible outreach activities. "You are not going to see any large-scale photos of massive events happening anywhere in recruiting, but that is not the foundation of success," said Grabski.
"Our success is really based on the relationships that we have with the community and the interaction and support that we have with the members of the community," he said. "And because it is a relationship-based success, the shutdown and the national discussions are not having a tremendous effect."
Recruiters across the board say they are weathering what could be a very challenging recruiting environment thanks to close relationships they have built not just with potential applicants, but also their parents, teachers, coaches and community leaders who influence their decisions to join the military.
It's an effort that has continued throughout the shutdown – through social media and face-to-face interaction in local communities.
Air Force recruiters, for example, are frequently seen in their communities taking part in Habitat for Humanity projects and other volunteer programs, Cavanaugh reported.
"Our basic philosophical approach to recruiting is that if you meld into and become part of the community and show your involvement in that community, you will become an accepted member of that community and the folks in that community are going to see what you offer their children as a viable option," he said.
Similarly, the Army regularly sends recruiters to help fill needs community leaders identify, whether it's a conditioning coach for a local athletic team or a teacher's assistant in a classroom.
"I have combat medics stepping in and assisting with biology labs," Grabski said. "I have mechanics who have time in Baghdad fixing tanks, now sitting in a high school automotive classes."
Snyder called regular interactions between Navy recruiters and community and civic leaders and educators vital to the strong relationships that support recruiting efforts. "The daily engagements and conversations our recruiters have with young adults and influencers are critical to our mission of finding high-quality young men and women to join our Navy," she said.
She expressed concern that although the partial shutdown hasn't yet hurt recruiting, a sustained one that limits recruiters' long-term engagement opportunities could.
Regular interactions give recruiters an opportunity to demonstrate to potential applicants and their influencers alike what the military represents, and share insight into doors that military service can open up, the recruiters said.
"We are looking for a community's best and brightest so we can put forth the best Air Force we can for our nation," Cavenaugh said. "These relationships allow us to share the Air Force story on a personal level [and] sustain the public interest in serving."
"The impact our recruiters have on perceptions about our Navy is significant, which impacts an individual's decision to join," agreed Snyder. "The conversation the recruiter has may be the very first interaction that individual has ever had with a Navy sailor, so our daily conversations across the country matter."
Grabski said there is no better recruiting tool than proud servicemembers who exemplify the military's best.
"If I can put them into a high school setting and get them to interact with high school students, their leadership shines through in amazing ways," he said. "Students see what true leaders look like and they tend to gravitate toward that and follow it.
"And that is the foundation of recruiting success," Grabski said. "It is a 17-year-old high-school student looking at somebody with chevrons on their uniform, saying, 'You are showing me some great opportunities.'"
SECRETARY OF DEFENSE HAGEL TOUTS VALUE OF WORKFORCE AFTER SHUTDOWN
FROM: U.S. DEFENSE DEPARTMENT
Hagel Stresses Workforce's Value After 'Manufactured Crisis'
American Forces Press Service
WASHINGTON, Oct. 17, 2013 - Defense Secretary Chuck Hagel issued a message to the Defense Department's workforce today, welcoming back employees furloughed by the 16-day government shutdown and emphasizing their value to the nation.
Here is the text of the secretary's message:
Today the Department of Defense is resuming normal operations across the world, now that Congress has finally restored funding for DoD and the rest of the federal government. This manufactured crisis was an unwelcome and unnecessary distraction from our critical work of keeping the country safe.
I know that each of your lives has been disrupted and affected in different ways. I regret the impact that this shutdown had on so many of our civilian personnel, particularly those who I was previously unable to recall from emergency furlough.
Starting today, we will be welcoming all of our civilians back to their normal duties. To those returning from furlough: know that the work you perform is incredibly valued by your military teammates and by me. I appreciate your professionalism and your patience during this difficult period of time, which came on top of last summer's sequestration-related furloughs. Your managers will have more information about this, but I can assure you that you will be paid in full for the time you were furloughed during the shutdown.
Now that this latest budget crisis has come to an end, we have an opportunity to return to focusing on the critical work of this department. Unfortunately, Congress did not end the budget uncertainty that has cast such a shadow of uncertainty over this department for much of the year. In the months ahead, they will have an opportunity to do so. My hope is that they will realize that these kinds of crises do great damage to our people, our national security, our economy, and America's standing in the world. Congress has a responsibility to govern, and it must fulfill those basic responsibilities in order to keep our country strong.
Hagel Stresses Workforce's Value After 'Manufactured Crisis'
American Forces Press Service
WASHINGTON, Oct. 17, 2013 - Defense Secretary Chuck Hagel issued a message to the Defense Department's workforce today, welcoming back employees furloughed by the 16-day government shutdown and emphasizing their value to the nation.
Here is the text of the secretary's message:
Today the Department of Defense is resuming normal operations across the world, now that Congress has finally restored funding for DoD and the rest of the federal government. This manufactured crisis was an unwelcome and unnecessary distraction from our critical work of keeping the country safe.
I know that each of your lives has been disrupted and affected in different ways. I regret the impact that this shutdown had on so many of our civilian personnel, particularly those who I was previously unable to recall from emergency furlough.
Starting today, we will be welcoming all of our civilians back to their normal duties. To those returning from furlough: know that the work you perform is incredibly valued by your military teammates and by me. I appreciate your professionalism and your patience during this difficult period of time, which came on top of last summer's sequestration-related furloughs. Your managers will have more information about this, but I can assure you that you will be paid in full for the time you were furloughed during the shutdown.
Now that this latest budget crisis has come to an end, we have an opportunity to return to focusing on the critical work of this department. Unfortunately, Congress did not end the budget uncertainty that has cast such a shadow of uncertainty over this department for much of the year. In the months ahead, they will have an opportunity to do so. My hope is that they will realize that these kinds of crises do great damage to our people, our national security, our economy, and America's standing in the world. Congress has a responsibility to govern, and it must fulfill those basic responsibilities in order to keep our country strong.
CFTC SETTLES CHARGES AGAINST JPMORGAN CHASE BANK, N.S., IN MARKET MANIPULATION CASE
FROM: U.S. COMMODITY FUTURES TRADING COMMISSION
CFTC Files and Settles Charges Against JPMorgan Chase Bank, N.A., for Violating Prohibition on Manipulative Conduct In Connection with “London Whale” Swaps Trades
JPMorgan Admits to Reckless Conduct in First Case Charging Violation of Dodd Frank’s Prohibition Against Manipulative Conduct and is Ordered to Pay a $100 Million Civil Monetary Penalty
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today issued an Order against JPMorgan Chase Bank, N.A. (JPMorgan or Bank), bringing and settling charges for employing a manipulative device in connection with the Bank’s trading of certain credit default swaps (CDS), in violation of the new Dodd-Frank prohibition against manipulative conduct. As set forth in the CFTC’s Order, by selling a staggering volume of these swaps in a concentrated period, the Bank, acting through its traders, recklessly disregarded the fundamental precept on which market participants rely, that prices are established based on legitimate forces of supply and demand. As a result, after a thorough 17-month investigation, the Commission has found the Bank liable for violating Section 6(c)(1) of the Commodity Exchange Act (the “Act”), 7 U.S.C. §9 (2012), as amended by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (“Dodd-Frank”), and Commission Regulation 180.1, 17 C.F.R. §180.1 (2012).
JPMorgan, which admits the specified factual findings in the Order including that its traders acted recklessly, is directed, among other things, to pay a $100 million civil monetary penalty.
“In Dodd-Frank, Congress provided a powerful new tool enabling the CFTC for the first time to prohibit reckless manipulative conduct,” said David Meister, the CFTC’s Director of Enforcement. “As this case demonstrates, the Commission is now better armed than ever to protect the market from traders, like those here, who try to ‘defend’ their position by dumping a gargantuan, record-setting, volume of swaps virtually all at once, recklessly ignoring the obvious dangers to legitimate pricing forces.”
Highlights of the CFTC Order
The CDS market comprises globally traded credit derivatives used to speculate on and hedge against credit defaults. Trillions of dollars (notional) of CDS instruments and baskets of CDS called credit default indices, some known as CDX, are used to transfer risk of defaults by companies in the United States and around the world. As such, the CDS market is an important aspect of the global economy.
From approximately 2007 through 2011, JPMorgan’s Chief Investment Office (“CIO”), operating through a trading desk in the Bank’s London branch, traded and held various credit default indices, including CDX, in a Synthetic Credit Portfolio (“SCP”). Each day the SCP traders marked their positions to market, assigning a value to the positions using market prices and other factors. That value was used to calculate the CIO’s profits and losses. At the end of each month an “independent” group at JPMorgan tested the validity of the traders’ month-end marks.
As of the end of 2011, the portfolio held $51 billion net notional of these credit instruments, the outsized amount spurring press reports referring to one CIO trader as the “London Whale.” Although previously quite profitable, the portfolio had taken a serious turn for the worse at least by late January 2012, with year-to-date mark-to-market losses of $100 million. In February 2012, daily losses were large and growing.
The violation charged in the CFTC’s Order concerns the Bank’s trading of one particular credit default index -- “CDX NA.IG9 10 year index” (“IG9 10Y”). As the end of February 2012 approached, the SCP’s net short position in the IG9 10Y grew to a mammoth $65 billion, which meant that relatively small favorable or adverse movements in market prices produced significant mark-to-market profits or losses for the CIO. Because the SCP was short IG9 10Y, the mark-to-market value of the position increased as the market price decreased.
On February 29, just ahead of the month-end testing of their marks, the traders believed the portfolio’s situation was grave. That day, desperate to avoid further losses, the traders developed a resolve, as they put it, to “defend the position.” Recognizing that the sheer size of their position in IG9 10Y had the potential to affect or influence the market, the traders recklessly sold massive amounts of protection on the IG9 10Y. They were short protection and they sold more protection.
Specifically, with the portfolio standing to benefit as the IG9 10Y market price dropped, on February 29 the CIO sold on net more than $7 billion of IG9 10Y, a staggering volume -- far and away the largest amount the CIO ever traded in one day -- $4.6 billion of which was sold during a three-hour period as the day drew to a close.
The Order provides comparative measures that demonstrate just how large and concentrated these February 29 sales of IG9 10Y were. For example, these sales alone accounted for more than 90% of the day’s net volume traded by the entire market, were 15% of the month’s net volume traded by the entire market, and were nearly 11 times the SCP’s average daily volume in February. The February 29 trading followed more than $3 billion in sales of the IG9 10Y during the prior two days. The net volume the CIO sold February 27-29 amounted to roughly one-third of the total volume traded for the entire month of February by all other market participants.
During this same period at month-end, the IG9 10Y market price dropped substantially. While the CIO was selling at generally declining prices, the value of the short position that the CIO held in the SCP benefited on a mark-to-market basis from the declining market prices.
As set forth in the Order, the trading strategy to “defend the position” -- selling $7.17 billion of the IG9 10Y on February 29 in a concentrated period -- constituted a manipulative device employed by the traders in reckless disregard of the possible consequences of their conduct, including obvious dangers to legitimate market forces. That conduct therefore violated section 6(c)(1) of the Act and Rule 180.1.
In addition to paying a $100 million penalty, JPMorgan must continue to implement written enhancements to its supervision and control system in connection with swaps trading activity, including trading and risk management controls reasonably designed to prevent and promptly detect mis-marking of its books, enhanced communications among risk, control and supervisory functions, and the development of additional surveillance tools to assist supervisors with monitoring trading activity in connection with swaps.
In addition to finding the violation, the Order describes aspects of the CFTC’s new business conduct rules applicable to swap dealers. JPMorgan registered with the Commission as a swap dealer as of December 31, 2012, and at that time became subject to the Commission’s new swap dealer regime, including rules that impose supervision and control obligations. Although these rules did not apply to the Bank at the time of the events in question, the Order explains how some of these new rules would have covered the matters set forth in the Order, and concludes that had the regulations been in place, much of the offending conduct at issue (and the significant losses it caused) may well have been detected and remedied internally much more quickly, thereby potentially reducing losses.
The CFTC acknowledges the valuable assistance of the United Kingdom’s Financial Conduct Authority, as well as that of the U.S. Securities and Exchange Commission and the United States Attorney’s Office for the Southern District of New York.
The CFTC also acknowledges JPMorgan’s cooperation with the Division of Enforcement’s investigation.
CFTC Division of Enforcement staff responsible for this action are Saadeh Al-Jurf, Allison Baker Shealy, Traci Rodriguez, Daniel Ullman, Joan Manley, and Paul G. Hayeck.
CFTC Files and Settles Charges Against JPMorgan Chase Bank, N.A., for Violating Prohibition on Manipulative Conduct In Connection with “London Whale” Swaps Trades
JPMorgan Admits to Reckless Conduct in First Case Charging Violation of Dodd Frank’s Prohibition Against Manipulative Conduct and is Ordered to Pay a $100 Million Civil Monetary Penalty
Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today issued an Order against JPMorgan Chase Bank, N.A. (JPMorgan or Bank), bringing and settling charges for employing a manipulative device in connection with the Bank’s trading of certain credit default swaps (CDS), in violation of the new Dodd-Frank prohibition against manipulative conduct. As set forth in the CFTC’s Order, by selling a staggering volume of these swaps in a concentrated period, the Bank, acting through its traders, recklessly disregarded the fundamental precept on which market participants rely, that prices are established based on legitimate forces of supply and demand. As a result, after a thorough 17-month investigation, the Commission has found the Bank liable for violating Section 6(c)(1) of the Commodity Exchange Act (the “Act”), 7 U.S.C. §9 (2012), as amended by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (“Dodd-Frank”), and Commission Regulation 180.1, 17 C.F.R. §180.1 (2012).
JPMorgan, which admits the specified factual findings in the Order including that its traders acted recklessly, is directed, among other things, to pay a $100 million civil monetary penalty.
“In Dodd-Frank, Congress provided a powerful new tool enabling the CFTC for the first time to prohibit reckless manipulative conduct,” said David Meister, the CFTC’s Director of Enforcement. “As this case demonstrates, the Commission is now better armed than ever to protect the market from traders, like those here, who try to ‘defend’ their position by dumping a gargantuan, record-setting, volume of swaps virtually all at once, recklessly ignoring the obvious dangers to legitimate pricing forces.”
Highlights of the CFTC Order
The CDS market comprises globally traded credit derivatives used to speculate on and hedge against credit defaults. Trillions of dollars (notional) of CDS instruments and baskets of CDS called credit default indices, some known as CDX, are used to transfer risk of defaults by companies in the United States and around the world. As such, the CDS market is an important aspect of the global economy.
From approximately 2007 through 2011, JPMorgan’s Chief Investment Office (“CIO”), operating through a trading desk in the Bank’s London branch, traded and held various credit default indices, including CDX, in a Synthetic Credit Portfolio (“SCP”). Each day the SCP traders marked their positions to market, assigning a value to the positions using market prices and other factors. That value was used to calculate the CIO’s profits and losses. At the end of each month an “independent” group at JPMorgan tested the validity of the traders’ month-end marks.
As of the end of 2011, the portfolio held $51 billion net notional of these credit instruments, the outsized amount spurring press reports referring to one CIO trader as the “London Whale.” Although previously quite profitable, the portfolio had taken a serious turn for the worse at least by late January 2012, with year-to-date mark-to-market losses of $100 million. In February 2012, daily losses were large and growing.
The violation charged in the CFTC’s Order concerns the Bank’s trading of one particular credit default index -- “CDX NA.IG9 10 year index” (“IG9 10Y”). As the end of February 2012 approached, the SCP’s net short position in the IG9 10Y grew to a mammoth $65 billion, which meant that relatively small favorable or adverse movements in market prices produced significant mark-to-market profits or losses for the CIO. Because the SCP was short IG9 10Y, the mark-to-market value of the position increased as the market price decreased.
On February 29, just ahead of the month-end testing of their marks, the traders believed the portfolio’s situation was grave. That day, desperate to avoid further losses, the traders developed a resolve, as they put it, to “defend the position.” Recognizing that the sheer size of their position in IG9 10Y had the potential to affect or influence the market, the traders recklessly sold massive amounts of protection on the IG9 10Y. They were short protection and they sold more protection.
Specifically, with the portfolio standing to benefit as the IG9 10Y market price dropped, on February 29 the CIO sold on net more than $7 billion of IG9 10Y, a staggering volume -- far and away the largest amount the CIO ever traded in one day -- $4.6 billion of which was sold during a three-hour period as the day drew to a close.
The Order provides comparative measures that demonstrate just how large and concentrated these February 29 sales of IG9 10Y were. For example, these sales alone accounted for more than 90% of the day’s net volume traded by the entire market, were 15% of the month’s net volume traded by the entire market, and were nearly 11 times the SCP’s average daily volume in February. The February 29 trading followed more than $3 billion in sales of the IG9 10Y during the prior two days. The net volume the CIO sold February 27-29 amounted to roughly one-third of the total volume traded for the entire month of February by all other market participants.
During this same period at month-end, the IG9 10Y market price dropped substantially. While the CIO was selling at generally declining prices, the value of the short position that the CIO held in the SCP benefited on a mark-to-market basis from the declining market prices.
As set forth in the Order, the trading strategy to “defend the position” -- selling $7.17 billion of the IG9 10Y on February 29 in a concentrated period -- constituted a manipulative device employed by the traders in reckless disregard of the possible consequences of their conduct, including obvious dangers to legitimate market forces. That conduct therefore violated section 6(c)(1) of the Act and Rule 180.1.
In addition to paying a $100 million penalty, JPMorgan must continue to implement written enhancements to its supervision and control system in connection with swaps trading activity, including trading and risk management controls reasonably designed to prevent and promptly detect mis-marking of its books, enhanced communications among risk, control and supervisory functions, and the development of additional surveillance tools to assist supervisors with monitoring trading activity in connection with swaps.
In addition to finding the violation, the Order describes aspects of the CFTC’s new business conduct rules applicable to swap dealers. JPMorgan registered with the Commission as a swap dealer as of December 31, 2012, and at that time became subject to the Commission’s new swap dealer regime, including rules that impose supervision and control obligations. Although these rules did not apply to the Bank at the time of the events in question, the Order explains how some of these new rules would have covered the matters set forth in the Order, and concludes that had the regulations been in place, much of the offending conduct at issue (and the significant losses it caused) may well have been detected and remedied internally much more quickly, thereby potentially reducing losses.
The CFTC acknowledges the valuable assistance of the United Kingdom’s Financial Conduct Authority, as well as that of the U.S. Securities and Exchange Commission and the United States Attorney’s Office for the Southern District of New York.
The CFTC also acknowledges JPMorgan’s cooperation with the Division of Enforcement’s investigation.
CFTC Division of Enforcement staff responsible for this action are Saadeh Al-Jurf, Allison Baker Shealy, Traci Rodriguez, Daniel Ullman, Joan Manley, and Paul G. Hayeck.
PRESIDENT OBAMA PRESENTS MEDAL OF HONOR TO FORMER ARMY CAPTAIN
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President Barack Obama presents the Medal of Honor to former Army Capt. William D. Swenson during an Oct. 15, 2013, White House ceremony. Swenson was honored for his valor during a Sept. 8, 2009, battle in Afghanistan's Kunar province. U.S. Army photo by Lisa Ferdinando
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FROM: U.S. DEFENSE DEPARTMENT
Former Army Captain Receives Medal of Honor at White House
By Lisa Ferdinando
Army News Service
WASHINGTON, Oct. 16, 2013 - President Barack Obama presented the Medal of Honor to former Army Capt. William D. Swenson in a White House ceremony yesterday, citing Swenson's heroism during a six-hour battle that followed a deadly Taliban ambush in Afghanistan four years ago.
Swenson is the first Army officer to receive the nation's highest military honor for actions in Iraq or Afghanistan.
Guests at the White House ceremony included other Medal of Honor recipients, soldiers and Marines who fought alongside Swenson, and the families of service members who died in the battle. Army Secretary John M. McHugh, Army Chief of Staff Gen. Ray Odierno and Army Undersecretary Joseph W. Westphal also attended.
Before draping the medal around Swenson's neck, Obama recounted Swenson's heroic actions in saving more than a dozen lives during the Sept. 8, 2009, Battle of Ganjgal in Afghanistan's Kunar province.
Swenson is the second service member to receive the Medal of Honor for that battle. Dakota Meyer, a Marine Corps corporal at the time, was honored two years ago.
The president said Swenson is a remarkable example to the nation of the professionalism and patriotism that everyone should strive for.
"Capt. Will Swenson was a leader on that September morning," Obama said. "But like all great leaders, he was also a servant -- to the men he commanded, to the more than a dozen Afghans and Americans whose lives he saved, to the families of those who gave their last full measure of devotion on that faraway field."
Swenson served with Combined Security Transition Command Afghanistan's Task Force Phoenix in support of 10th Mountain Division's 1st Battalion, 32nd Infantry Regiment, 3rd Brigade Combat Team, as an embedded advisor to the Afghan border police. He said the honor is for all who served that day and for the families of those who were killed in the battle.
"The value of an award is truly what we as a nation put into it, what we value it as," he told reporters after receiving the award. "This award is earned with a team -- a team of our finest Marines, Army, Air Force, Navy and our Afghan partners standing side by side. Now that team includes Gold Star families who lost their fathers, sons and husbands that day. This medal represents them -- it represents us."
Around sunrise that day four years ago, Obama said, a column of Afghan soldiers and their American advisors were winding their way up a narrow trail toward a village to meet with elders. "But just as the first soldier reaches the outskirts of the village, all hell breaks loose," he added.
The American forces and their Afghan partners were ambushed by more than 60 well-armed, well-positioned enemy fighters, the Medal of Honor citation said. Insurgents surrounded three Marines and a Navy corpsman, Obama said, and rocket-propelled grenades, mortar and machine-gun fire poured in from three sides.
"Will and the soldiers in the center of the column are pinned down," he said. Swenson called in air support, Obama said, but initial requests were denied because Swenson and his team were too close to the village.
After finding out his noncommissioned officer, Army Sgt. 1st Class Kenneth Westbrook, was injured, Swenson risked his life to aid him.
"Will breaks across 50 meters of open space, bullets biting all around," Obama said. "Lying on his back, he presses a bandage to Kenneth's wounds with one hand and calls for a medevac with the other, trying to keep his buddy calm."
Swenson continued to fight the enemy and risked his life getting Westbrook to the medevac, said Obama, noting that before the helicopter left, Swenson kissed Westbrook on the forehead in "a simple act of compassion and loyalty to a brother in arms."
Risking his own life again, Swenson then drove an unarmored vehicle straight into the kill zone to rescue injured Afghan forces, Obama said. He returned into the path of enemy fire again, when he and a Humvee crew recovered the four fallen service members.
"Will and the others carry them out, one by one," Obama said. "They bring their fallen brothers home."
Marine Corps Gunnery Sgt. Edwin Johnson, Marine Corps 1st Lt. Michael Johnson, Marine Corps Gunnery Sgt. Aaron Kenefick and Navy Petty Officer 3rd Class James Layton were killed, along with nine Afghan security force personnel.
Westbrook survived the battle, but died a month later from complications.
"To the families of those we've lost, we will never forget," said Obama, adding that the nation is grateful for those who served that day and all who continue to serve "with such incredible courage and professionalism."
SECRETARY OF DEFENSE HAGEL SAYS EFFECTS OF SHUTDOWN CONTINUE
FROM: U.S. DEFENSE DEPARTMENT
Shutdown Over, But Effects on DOD Continue, Hagel Says
By Jim Garamone
American Forces Press Service
WASHINGTON, Oct. 17, 2013 - The government shutdown is over, but it will take a while for the effects to fade, Defense Secretary Chuck Hagel said here today.
At the shutdown's height, more than 400,000 Defense Department civilian employees were furloughed because of the lapse of appropriations for the new fiscal year, which began Oct. 1. The Pay Our Military Act allowed the department to bring most back to work Oct. 7. The rest -- about 5,000 -- came back to work today.
"While all of us across the department welcome the fact that the shutdown is now behind us, I know that its impact will continue to be felt by all of our people," Hagel said at a Pentagon news conference. "All of them, in different ways, had their lives affected and disrupted during this period of tremendous uncertainty."
All DOD leaders will work to repair the damage from the shutdown, the secretary vowed.
"I want all of our civilian personnel to know that the work they do is critically important to this department and this country," Hagel said. "It matters to this department, and it matters for the country. The military simply cannot succeed without our civilian employees, and the president and I appreciate their professionalism and their patience throughout this very trying period."
While the department must refocus on critical work, Hagel noted, Congress did not remove the shadow of uncertainty cast over DOD.
"DOD is now operating on a short-term continuing resolution, which limits our ability to start new programs, and the damaging cuts of sequestration remain the law of the land," the secretary said.
The continuing resolution passed last night gives Congress the chance to craft a balanced long-term spending bill, Hagel said.
"If this fiscal uncertainty continues, it will have an impact on our economy, our national security, and America's standing in the world," he added. "If the sequester level continues, there will also be consequences." The cuts could be devastating to training and to maintaining and equipping the force, he said.
"DOD has a responsibility to give America's elected leaders and the American people a clear-eyed assessment of what our military can and cannot do after years of sequester-level cuts," Hagel said. "In the months ahead, we will continue to provide our best and most honest assessment as Congress works to establish the nation's long-term spending priorities."
The secretary said he is concerned about civilian morale.
"I don't think anyone questions that the uncertainty that shutting down the government and closing down people's jobs has brought a great amount of not only disruption to our government, to our country, but to their lives, to the civilian personnel whose lives have been disrupted by this particular shutdown," he said.
Combined with no authorization, no appropriation, continuing sequestration and the uncertainty of planning, this creates a perfect stew for bad morale, Hagel said.
"People have to have some confidence that they have a job that they can rely on," he explained. "I know there are no guarantees in life, but we can't continue to do this to our people -- having them live under this cloud of uncertainty."
If this continues, he added, DOD will not be able to recruit good people.
The government shutdown and the nation's debt limit problem are making American allies nervous as well, the secretary said.
"Our allies are asking questions: Can we rely on our partnership with America? Will America fulfill its commitments and its promises?" he said. "These are huge issues for all of us, and they do impact our national security and our relationships and our standing in the world."
Shutdown Over, But Effects on DOD Continue, Hagel Says
By Jim Garamone
American Forces Press Service
WASHINGTON, Oct. 17, 2013 - The government shutdown is over, but it will take a while for the effects to fade, Defense Secretary Chuck Hagel said here today.
At the shutdown's height, more than 400,000 Defense Department civilian employees were furloughed because of the lapse of appropriations for the new fiscal year, which began Oct. 1. The Pay Our Military Act allowed the department to bring most back to work Oct. 7. The rest -- about 5,000 -- came back to work today.
"While all of us across the department welcome the fact that the shutdown is now behind us, I know that its impact will continue to be felt by all of our people," Hagel said at a Pentagon news conference. "All of them, in different ways, had their lives affected and disrupted during this period of tremendous uncertainty."
All DOD leaders will work to repair the damage from the shutdown, the secretary vowed.
"I want all of our civilian personnel to know that the work they do is critically important to this department and this country," Hagel said. "It matters to this department, and it matters for the country. The military simply cannot succeed without our civilian employees, and the president and I appreciate their professionalism and their patience throughout this very trying period."
While the department must refocus on critical work, Hagel noted, Congress did not remove the shadow of uncertainty cast over DOD.
"DOD is now operating on a short-term continuing resolution, which limits our ability to start new programs, and the damaging cuts of sequestration remain the law of the land," the secretary said.
The continuing resolution passed last night gives Congress the chance to craft a balanced long-term spending bill, Hagel said.
"If this fiscal uncertainty continues, it will have an impact on our economy, our national security, and America's standing in the world," he added. "If the sequester level continues, there will also be consequences." The cuts could be devastating to training and to maintaining and equipping the force, he said.
"DOD has a responsibility to give America's elected leaders and the American people a clear-eyed assessment of what our military can and cannot do after years of sequester-level cuts," Hagel said. "In the months ahead, we will continue to provide our best and most honest assessment as Congress works to establish the nation's long-term spending priorities."
The secretary said he is concerned about civilian morale.
"I don't think anyone questions that the uncertainty that shutting down the government and closing down people's jobs has brought a great amount of not only disruption to our government, to our country, but to their lives, to the civilian personnel whose lives have been disrupted by this particular shutdown," he said.
Combined with no authorization, no appropriation, continuing sequestration and the uncertainty of planning, this creates a perfect stew for bad morale, Hagel said.
"People have to have some confidence that they have a job that they can rely on," he explained. "I know there are no guarantees in life, but we can't continue to do this to our people -- having them live under this cloud of uncertainty."
If this continues, he added, DOD will not be able to recruit good people.
The government shutdown and the nation's debt limit problem are making American allies nervous as well, the secretary said.
"Our allies are asking questions: Can we rely on our partnership with America? Will America fulfill its commitments and its promises?" he said. "These are huge issues for all of us, and they do impact our national security and our relationships and our standing in the world."
FDA INVESTIGATES LEUKEMIA DRUG AFTER REPORTS OF BLOOD CLOTS
FROM: U.S. FOOD AND DRUG ADMINISTRATION
FDA Drug Safety Communication: FDA investigating leukemia drug Iclusig (ponatinib) after increased reports of serious blood clots in arteries and veins
Safety Announcement
[10-11-2013] The U.S. Food and Drug Administration (FDA) is investigating an increasing frequency of reports of serious and life-threatening blood clots and severe narrowing of blood vessels (arteries and veins) of patients taking the leukemia chemotherapy drug Iclusig (ponatinib).
Health care professionals should consider for each patient, whether the benefits of Iclusig treatment are likely to exceed the risks of treatment.
Patients taking Iclusig should seek immediate medical attention if they experience symptoms suggesting a heart attack such as chest pain or pressure, pain in their arms, back, neck or jaw, or shortness of breath; or symptoms of a stroke such as numbness or weakness on one side of the body, trouble talking, severe headache, or dizziness.
Iclusig is a prescription medicine used to treat adults diagnosed with chronic phase, accelerated phase, or blast phase chronic myeloid leukemia (CML) or Philadelphia chromosome-positive (Ph+) acute lymphoblastic leukemia (ALL), who are no longer benefiting from previous treatment or who did not tolerate other treatment.
At the time of Iclusig’s approval in December 2012, the drug label contained information about the risks of blood clots in the Boxed Warning and Warnings and Precautions sections. In clinical trials conducted before approval, serious arterial blood clots occurred in 8 percent of Iclusig-treated patients, and blood clots in the veins occurred in 3 percent of Iclusig-treated patients. In the most recent clinical trial data submitted by the manufacturer to FDA, at least 20 percent of all participants treated with Iclusig have developed blood clots or narrowing of blood vessels.
Data from clinical trials and postmarket adverse event reports show that serious adverse events have occurred in patients treated with Iclusig, including heart attacks resulting in death, worsening coronary artery disease, stroke, narrowing of large arteries of the brain, severe narrowing of blood vessels in the extremities, and the need for urgent surgical procedures to restore blood flow. Other problems occurring with the drug’s use include congestive heart failure (CHF) and loss of blood flow to extremities resulting in tissue death requiring amputation. Newly identified serious adverse reactions have also been reported involving the eyes, including decreased vision and clots in blood vessels of the eye. These adverse events were seen in all age groups treated and in those with and without cardiovascular risk factors.
FDA is providing this information to patients and health care professionals while it continues its investigation. We are actively working to further evaluate these adverse events and will notify the public when more information is available.
We urge health care professionals and patients to report side effects involving Iclusig to the FDA MedWatch program, using the information in the “Contact FDA” box at the bottom of this page.
FDA Drug Safety Communication: FDA investigating leukemia drug Iclusig (ponatinib) after increased reports of serious blood clots in arteries and veins
Safety Announcement
[10-11-2013] The U.S. Food and Drug Administration (FDA) is investigating an increasing frequency of reports of serious and life-threatening blood clots and severe narrowing of blood vessels (arteries and veins) of patients taking the leukemia chemotherapy drug Iclusig (ponatinib).
Health care professionals should consider for each patient, whether the benefits of Iclusig treatment are likely to exceed the risks of treatment.
Patients taking Iclusig should seek immediate medical attention if they experience symptoms suggesting a heart attack such as chest pain or pressure, pain in their arms, back, neck or jaw, or shortness of breath; or symptoms of a stroke such as numbness or weakness on one side of the body, trouble talking, severe headache, or dizziness.
Iclusig is a prescription medicine used to treat adults diagnosed with chronic phase, accelerated phase, or blast phase chronic myeloid leukemia (CML) or Philadelphia chromosome-positive (Ph+) acute lymphoblastic leukemia (ALL), who are no longer benefiting from previous treatment or who did not tolerate other treatment.
At the time of Iclusig’s approval in December 2012, the drug label contained information about the risks of blood clots in the Boxed Warning and Warnings and Precautions sections. In clinical trials conducted before approval, serious arterial blood clots occurred in 8 percent of Iclusig-treated patients, and blood clots in the veins occurred in 3 percent of Iclusig-treated patients. In the most recent clinical trial data submitted by the manufacturer to FDA, at least 20 percent of all participants treated with Iclusig have developed blood clots or narrowing of blood vessels.
Data from clinical trials and postmarket adverse event reports show that serious adverse events have occurred in patients treated with Iclusig, including heart attacks resulting in death, worsening coronary artery disease, stroke, narrowing of large arteries of the brain, severe narrowing of blood vessels in the extremities, and the need for urgent surgical procedures to restore blood flow. Other problems occurring with the drug’s use include congestive heart failure (CHF) and loss of blood flow to extremities resulting in tissue death requiring amputation. Newly identified serious adverse reactions have also been reported involving the eyes, including decreased vision and clots in blood vessels of the eye. These adverse events were seen in all age groups treated and in those with and without cardiovascular risk factors.
FDA is providing this information to patients and health care professionals while it continues its investigation. We are actively working to further evaluate these adverse events and will notify the public when more information is available.
We urge health care professionals and patients to report side effects involving Iclusig to the FDA MedWatch program, using the information in the “Contact FDA” box at the bottom of this page.
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