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The Senate Banking Committee has yet to decide whether it will call JPMorgan Chase officials to testify about the firm's $2 billion trading loss, according to a committee source.
May 14 -
The Massachusetts Democrat argued following the $2 billion loss at JPMorgan Chase that it's time to bring back the division between commercial banking and investment banking.
May 14 -
White House Press Secretary Jay Carney told reporters Monday that the $2 billion loss "reinforces" the need for the 2010 reform law.
May 14
WASHINGTON — The Justice Department has opened an inquiry into JPMorgan Chase & Co.'s (JPM) more than $2 billion trading loss announced by the company Thursday, according to a person familiar with the matter.
The probe is at an early stage and it's unclear what possible legal violation federal investigators may be focusing on. JPMorgan declined to comment.
The Federal Bureau of Investigation's New York field office is leading the inquiry, according to an official briefed on the matter.
Last week the Securities and Exchange Commission began its own review of the matter, examining the company's accounting and disclosures to investors, according to another person familiar with the matter.
On Thursday, the bank disclosed a massive trading bet that resulted in the $2 billion-plus loss. In recent days, the company said a senior executive who oversaw the group that suffered the losses retired, the first of several executive departures expected.
The trading loss has aroused intense scrutiny in Washington, where some lawmakers have been fighting efforts by big banks to delay or scale back regulations mandated by the 2010 Dodd-Frank financial overhaul. JPMorgan had long been seen as one of the more sophisticated, successful banks in the U.S., and Chief Executive James Dimon has been an outspoken critic of new regulations, such as the so-called Volcker rule, which aims to limit risk-taking trading by commercial banks that enjoy government guarantees.
President Obama on Monday praised Mr. Dimon and the bank, but said the losing trade shows the importance of implementing new rules for Wall Street.
