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Dept of Justice Investigates JPMorgan Chase’s $2 Million Trading Loss

Report from Washington Post:

The Justice Department has initiated a criminal probe into the $2 billion trading loss at JPMorgan Chase, a law enforcement representative familiar with the situation said Tuesday.

The inquiry is at a very early stage, said the person, who spoke on the condition of anonymity because the matter is private.

Many details about the loss at JPMorgan are murky, so it is unclear what laws, if any, may have been violated. But the attention from federal officials indicates that regulatory pressure is rising on JPMorgan, and its chief executive Jamie Dimon, to explain what exactly led to the bank’s multi-billion dollar misstep. That, in turn, has rekindled questions about whether government regulators are equipped to monitor banks making risky, complex trades.

At JPMorgan’s annual shareholder meeting Tuesday, Dimon responded to shareholders asking about the company’s trading loss, its lobbying on financial regulations and Dimon’s post on the board of the Federal Reserve Bank of New York.

Dimon opened the Tampa meeting, which lasted for less than an hour, by speaking rapidly about the bank’s surprising trading loss, calling the mistakes “self-inflicted.”

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