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BusinessInsider writes: Yesterday, it was revealed that the
Department of Justice would be looking into JP Morgan's $2 billion trading loss
in an effort assisted by the FBI in New York.
Many thought the idea of a possible criminal case over JP Morgan's bad
trade was a bit too much, considering how open the bank has been about
disclosing their losses..
But now we have a bit more information about what the
inquiry will actually focus on. From the FT—
Lawyers said regulators would look at what top executives,
including Mr Dimon, knew when he dismissed concerns about trading activity at
the bank’s chief investment office as “a tempest in a teapot” less than four
weeks before disclosing “egregious” losses on credit derivatives trades.
The federal agency will also look at the bank's accounting
procedures and disclosure practices, according to the New York Times. Sources
told the NYT that the initial probe is routine after such big losses at a bank.
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