Wednesday, May 16, 2012

Now We Know Why The FBI Is Investigating JP Morgan




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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.


Read more: http://www.businessinsider.com/now-we-know-why-the-fbi-is-investigating-jp-morgan-2012-5

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