The U.S. may announce charges as early as today related to trading losses sustained last year, a person familiar with the matter said.
Bloomberg News reports that former bank employees in London have been investigated by the U.S. Justice Department for more than a year over whether they tried to conceal the losses at the largest U.S. bank, a person familiar with the matter previously said.
JP Morgan lost more than $6.2bn last year on derivatives bets. The loss, first disclosed in May 2012, led to an earnings restatement, a Senate subcommittee hearing and probes by the U.S. Securities and Exchange Commission and U.K. Financial Conduct Authority.
The episode prompted JP Morgan’s board to cut CEO Jamie Dimon's pay in half.
'The penalties in the U.S. are significantly higher' than in the U.K, said Jeremy Summers, a lawyer at Slater & Gordon in London. 'People faced with the possibility of being charged here or the U.S. have sought to be dealt with here because they are less draconian,' Summers said.
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