Skip to main content

Newsroom

August 28, 2013

Regulator battles threaten to swamp JPMorgan

In April, Jamie Dimon, chief executive of JPMorgan Chase, previously the posterchild of resilience in the financial crisis and now the target of more lawsuits and investigations than any other bank, warned: “We expect we will have more” regulatory orders to deal with. His prediction has come true in many areas.

When the US authorities charged two former traders with allegedly hiding the mushrooming “London whale” trading loss, they spent a lot of time discussing the bank’s poor compliance. Authorities described the London-based one-man unit for vetting the valuations attributed to the trading positions as “little more than a rubber stamp” and “compliance in name only”.

The bank is expected to pay a hefty fine and admit to wrongdoing to settle a Securities and Exchange Commission civil investigation into the trading loss in addition to a settlement on criminal allegations with the US attorney’s office in Manhattan, people familiar with the matter say.

Prosecutors charged the two former bankers with filing false statements with the SEC and keeping false books and records, among other things. The authorities have said their investigations are continuing. As a result of the mismarking, JPMorgan restated its first-quarter 2012 results. The losses exceeded $6bn after it unwound the positions.”

***

Read full Financial Times article here

 
In the News
Share

MEDIA REQUESTS

For media inquiries, please contact us at
press@bettermarkets.org or 202-618-6433.

Contact Us

For media inquiries, please contact press@bettermarkets.org or 202-618-6433.

To sign up for our email newsletter, please visit this page.

Name(Required)
This field is for validation purposes and should be left unchanged.

Sign Up — Stay Informed With Our Monthly Newsletter

This field is for validation purposes and should be left unchanged.

For media inquiries,

please contact press@bettermarkets.org or 202-618-6433.

Donate

Help us fight for the public interest in our financial markets, protecting Main Street from Wall Street and avoiding another costly financial collapse and economic crisis, by making a donation today.

Donate Today