- Egypt rights center raided, 2 Mubaraks acquitted
- New Mexico Supreme Court rules same-sex marriage constitutional
- Blame Bush: 5 years later, that’s still the mantra, pollsters find
- Dutch prostitutes demand same retirement benefits as soccer stars
- John McCain to Harry Reid: I’ll ‘kick the crap’ out of you
- Dogs that talk: Researchers seek $10K for ‘No More Woof’ technology
- 1,000 firefighters called to battle stubborn Big Sur wildfire
- Black Friday brouhaha: Millions of Target shoppers hit by credit card theft
- Britain orders airplane to rescue citizens from violent South Sudan
- Mega Millions winner emerges as Georgia mom, in ‘disbelief’
JPMorgan says bad trade has ballooned to $5.8B
Question of the Day
NEW YORK (AP) — JPMorgan Chase said Friday that its traders may have tried to conceal the losses from a soured bet that has embarrassed the bank and cost it almost $6 billion — far more than its CEO first suggested.
The bank said an internal investigation had uncovered evidence that led executives to “question the integrity” of the values, or marks, that traders assigned to their trades.
JPMorgan also said that it planned to revoke two years’ worth of pay from some of the senior managers involved in the bad bet, and that it had closed the division of the bank responsible for the mistake.
“This has shaken our company to the core,” CEO Jamie Dimon said.
The bank said the loss, which Dimon estimated at $2 billion when he disclosed it in May, had grown to $5.8 billion, and could grow larger than $7 billion if financial markets deteriorate severely.
He said Dimon now realizes how complex and difficult to manage the bank is, will be more diligent in the future and probably won’t be the crusader he has been against some proposed financial regulation.
“Did it cost shareholders a few bucks? Yup,” he said. “But it was a non-horrible way of learning the lesson, in the sense that the entire institution didn’t burn down, the lesson’s been taught and Dimon seems ready to take it.”
For his part, Dimon concluded: “We are not proud of this moment, but we are proud of our company.”
The investigation, which covered more than a million emails and tens of thousands of voice messages, suggested traders were trying to make losses look smaller, the bank said.
The revelation could expose JPMorgan to civil fraud charges. If regulators decide that employee deceptions caused JPMorgan to report inaccurate financial details, they could pursue charges against the employees, the bank or both.
JPMorgan could not necessarily hide behind the actions of its employees. Regulators could decide that its oversight or risk management contributed to the problematic statements.
As a result of what it found, JPMorgan lowered its reported net income for the first quarter of this year by $459 million. The bank was still widely profitable: Even after the adjustment, it made $4.9 billion for the quarter.
By Andrew P. Napolitano
Fourth Amendment says Obama is not at liberty to collect metadata
- Calling sentence disparities unfair, Obama pardons 8 crack offenders
- Homeland Security helps smuggle illegal immigrant children into the U.S.
- Gov't wasted $30 billion on 'pillownauts,' crystal goblets -- buying human urine!
- Duck Dynasty Phil Robertson suspended indefinitely for gay quip
- Bill Gates: The Secret Santa disguised as a 'friendly fellow' on Reddit
- Armed response, not restrictive gun laws, brought swift end to school shooting
- Obamacare 'pajamas boy' gets roundly mocked
- BOLTON: Nero in the White House
- Democrats cite pope in call for minimum wage hike, jobless benefits
- Outrage over Phil Robertson suspension, 'malignant' political correctness
Independent voices from the The Washington Times Communities
The world impacts us. What happens in our towns, cities, states, country and on this planet makes a difference to us.
Brazen, leading-edge, “call it like it is” columns and reporting from Ohio native, radio host and writer, Sara Marie Brenner.
Crystal Wright is a black conservative woman living in Washington, D.C.
Wall Street news for retail investors who want to know what's going on.
Top 10 handguns in the U.S.
Extraordinary day at Redskins Park
White House pets gone wild!
Let it snow