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May 23, 2012

Regulators Confirm Probes of JPMorgan Chase over $3 Billion Loss 
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U.S. regulators have confirmed probes of the financial giant JPMorgan
Chase over the firm's $3 billion loss in risky derivatives. Speaking
before a Senate hearing, Gary Gensler of the U.S. Commodity Futures
Trading Commission said a preliminary investigation of JPMorgan's credit
default swaps in under way. Meanwhile, the chair of the U.S. Securities
and Exchange Commission, Mary Schapiro, said her agency will probe
whether JPMorgan had hurt its shareholders.

Mary Schapiro: "Our best information is that the trading activities in
question took place in the bank in London and perhaps at other
affiliates — but not in the broker dealer that is directly
supervised by the SEC. Although the Commission does not discuss
investigations publicly, I can say that in circumstances of this nature,
where the activity does not appear to have occurred in one of our
regulated entities, the SEC would be primarily interested in, and
focused on, the appropriateness and completeness of the entity's
financial reporting and other public disclosures."

 

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