DOJ, FBI commence criminal probe of JPMorgan's $2B gaffe: Report

DOJ, FBI commence criminal probe of JPMorgan's $2B gaffe: Report
SEC, CFTC also said to be investigating bank's big blunder
JUN 19, 2012
The U.S. Department of Justice and the Federal Bureau of Investigation in New York have begun a criminal probe of JPMorgan Chase & Co. (JPM)'s $2 billion trading loss, a person familiar with the matter said. The U.S. is looking into what if any criminal wrongdoing occurred in relation to the losses the bank reported last week, said the person, who declined to be identified because the matter isn't public. The inquiry is in its most preliminary stage, the person said. The U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission, which regulates derivatives trading, are also examining New York-based JPMorgan's trading activities, according to people familiar with those probes. JPMorgan Chief Executive Officer Jamie Dimon said on May 10 that the bank made “egregious” mistakes and that the losses of about $2 billion tied to synthetic credit securities were “self-inflicted.” Joseph Evangelisti, a spokesman for the bank, didn't immediately respond to an e-mail seeking comment. Ellen Davis, a spokeswoman for Manhattan U.S. Attorney Preet Bharara, declined to comment. Robert Nardoza, a spokesman for U.S. Attorney Loretta Lynch in Brooklyn, where JPMorgan has some of its operations, didn't return calls seeking comment. The probe was reported earlier by the Wall Street Journal. --Bloomberg News--

Latest News

Advisor moves: Succession planning, fresh starts trigger exits at Osaic and LPL
Advisor moves: Succession planning, fresh starts trigger exits at Osaic and LPL

Teams head for W-2 independence models with practices totaling almost $1B.

Empower strikes $340m deal to take on Milliman's retirement book
Empower strikes $340m deal to take on Milliman's retirement book

Acquisition adds 400 defined benefit plans and 1.5 million participants, pushing Empower deeper into workplace benefits.

EP Wealth lands fifth deal of 2026 in Silicon Valley
EP Wealth lands fifth deal of 2026 in Silicon Valley

Menlo Park firm brings $900m in AUM and specialist expertise serving Apple and Google employees.

Wealth Enhancement to absorb 88-year-old New York advisory dynasty in $760m deal
Wealth Enhancement to absorb 88-year-old New York advisory dynasty in $760m deal

Acquisition of the Shufro-Glass Group pushes the national RIA's total client assets above $157 billion.

IRA assets swell to $19.2 trillion as 401(k) rollovers drive growth
IRA assets swell to $19.2 trillion as 401(k) rollovers drive growth

IRAs now hold nearly twice the assets of 401(k) plans — and most of that money didn't arrive through annual contributions.

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income

SPONSORED Why direct indexing stopped being optional

Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.