|  | | 2012 News and Press Releases | | |
HEADLINE NEWS:
JPMorgan In Escalating Senate Probe Of Wrong-Way Derivative Bets
Dawn Kopecki, Robert Schmidt And Cheyenne Hopkins
Bloomberg. September 6, 2012
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EXCERPT: JPMorgan Chase & Co.’s (JPM) wrong-way bets on derivatives are the focus of an escalating probe by a U.S. Senate panel led by Carl Levin that has grilled executives from banks including Goldman Sachs Group Inc. and HSBC Holdings Plc, three people briefed on the inquiry said. Levin’s Permanent Subcommittee on Investigations is seeking testimony from people who worked in or helped lead JPMorgan’s chief investment office, according to the people, who declined to be identified because the inquiry isn’t public. The unit’s London staff lost at least $5.8 billion this year on the botched bets, which were large enough to shift markets. […] The bank, led by Chief Executive Officer Jamie Dimon, 56, faces a panel of lawmakers that in recent years brought executives from Goldman Sachs and London-based HSBC to Capitol Hill, barraging them with questions that challenged their version of events. JPMorgan said in July that its internal review found traders may have tried to obscure the full amount of losses they faced on their transactions. JPMorgan, the nation’s largest bank by assets, has lost more than $22 billion in shareholder value since Bloomberg News first reported on April 5 that it amassed a large and illiquid position in credit derivatives in the unit’s London office. The bank lost $5.8 billion on the trades during the first six months of this year and has said it could lose as much as $7.5 billion total while closing out the position. |
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