JPMorgan Whale Debacle Likely To Be Referred To SEC / Justice Department

Beached Whale

U.S. Senator Carl Levin said he plans to forward results from his panel’s nine-month investigation into JPMorgan Chase’s record trading loss to the Justice Department and Securities and Exchange Commission to review for possible wrongdoing by company executives.

'When you say criminal referrals, there will be referrals to the Justice Department and to the regulators, the Securities and Exchange Commission', Levin, chairman of the Senate Permanent Subcommittee on Investigations, said last week in an interview on Bloomberg Television’s 'Political Capital With Al Hunt.'

'We’ve laid out hundreds of pages of what I consider to be wrongful practices'.

Bloomberg also reports that JPMorgan Chase, whose trading loss of more than $6.2bn last year was fueled by the adoption of a formula that understated risks, has adopted yet another model.

JPMorgan said that it employed a new formula to judge the risk of its credit derivatives position, at least the fourth such model it’s used since January 2012. The portfolio was built by Bruno Iksil, known as the London Whale because his bets were so big they moved markets.

Levin Panel Plans to Refer JPMorgan Whale Loss to Justice, SEC

JPMorgan Switches Risk Model Again After Whale Loss

image: © brydeb

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