Latest news JP Morgan Chase & Co. Variable Interest Entity (VIEs) Losses and Level 3 Assets Introduction JP Morgan Chase & Co. is currently committed to several off-balance sheet arrangements and contractual obligations that may need future cash payments. Most obligations are documented on the balance sheet, but some can disclosed off the balance sheet under U.S. GAAP. JP Morgan Chase and Co. consolidates accounts of JP Morgan Chase and other entities in which the Bank has a controlling financial interest. The Bank has a number of off-balance sheet arrangements consisting of non-consolidated special-purpose entities (“SPEs”), which are a type of Variable Interest Entity (VIEs), and lending-related financial instruments (e.g., commitments and guarantees). The Bank allocates capital against all SPE-related transactions and related exposures, such as derivative contracts and lending-related commitments and guarantees. The Bank has no commitments to issue its stock to support any SPE transactions, and its policy requires that transactions with SPEs be conducted at a distance and reflect market pricing.