The FBI is starting a preliminary investigation into JPMorgan Chase’s $2 billion- that’s “billion” with a “B”- trading loss, reports  the New York Times.
The losses loomed large at Tuesday’s annual shareholder meeting in Tampa. The FBI inquiry comes right on the tail of another one from the Securities and Exchange Commission. Both agencies will look into JPMorgan’s disclosures and accounting practices. The S.E.C. may also examine whether bank’s risk controls broke down. The feds will face a higher bar than the S.E.C. for bringing a case against the bank.
No individuals have been has been accused of wrongdoing. Reps for the federal investigation stressed that it is “routine for the Justice Department to open a case after a big bank disclosed a huge blunder”.
That’s “blunder” with a big “B”.
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