(Everybody in the world with sobpoena power just hit JPMorgan Chase with requests for information in the Libor-rigging scandal)
WOW. Too bad the American People who are most damaged don't have any power.
Going Down – JPMorgan Chase Slammed With Libor Subpoenas – Stock Sliding
Huffington Post reports “JPMorgan Chase Libor Subpoenas Coming From Everybody In The World” “Pretty much everybody in the world with subpoena power has hit JPMorgan Chase with requests for information in the Libor-rigging scandal.
The biggest U.S. bank revealed the extent of its involvement in the probe in a filing Thursday morning with the Securities and Exchange Commission, saying regulators in the U.S., U.K., Canada, Switzerland and more had asked it for information:
“JPMorgan Chase has received subpoenas and requests for documents and, in some cases, interviews, from the DOJ, CFTC, SEC, European Commission, UK Financial Services Authority, Canadian Competition Bureau, Swiss Competition Commission and other regulatory authorities and banking associations around the world.”
That’s a whole lot of subpoenas. For the uninitiated, “DOJ, CFTC, SEC” refer to the
Justice
Department, Commodity Futures Trading Commission and Securities and
Exchange Commission. “Libor” stands for “London Interbank Offered Rate,”
a short-term interest rate that affects borrowing costs for homeowners,
companies and borrowers throughout the world, along with about $350
trillion in credit derivatives. Despite its importance, the rate has
apparently been manipulated constantly for years, in what may be the biggest financial scandal of all time.” [Continue reading in the Huffington Post]This is coupled with earlier news today in the Washington Post: “JPMorgan formally reduces 1Q profit by $459 million after investigation into huge trading loss”
NEW YORK — JPMorgan Chase on Thursday formally revised its first-quarter financial results to show a lower profit, after deciding that traders at its main investment arm had overstated the value of certain derivatives.
The reduction followed the bank’s internal investigation into the nearly $6 billion in trading losses revealed in recent months.
JPMorgan reiterated that it had discovered that some traders may have tried to conceal the size of losses from a soured bet. The “London Whale” trades involved complicated hedging strategies intended to reduce the bank’s risk, but actually increased it when they backfired.
In a regulatory filing, the New York bank said the probe found information that “suggested that certain individuals may have been seeking to avoid showing the full amount of the losses being incurred.”
Sounds like another version of Octopus and Samuel Israel - if only it would have been that easy to admit a crime….WP continues: ”The huge loss has embarrassed JPMorgan, which made it through the financial crisis with a reputation for taking less risk with its customers’ money than other major banks. CEO Jamie Dimon has been called before Congress to explain the debacle, and the Justice Department, the Securities and Exchange Commission and other regulators, including one in Britain, are looking into the loss.
The bank may still face civil fraud charges stemming from filing its original financial statements. If regulators decide that employee deceptions caused JPMorgan to report inaccurate financial details, they could pursue charges against the employees, the bank or both.
The bank could not necessarily hide behind the actions of its employees. Regulators could decide that its oversight or risk management contributed to the problematic statements.
JPMorgan Chase & Co. stock slipped 24 cents to close at $36.92 Thursday…” [Continue reading on the Washington Post]
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