JPMorgan misled investors over trading losses, says McCain

JPMorgan Chase has been accused of misleading investors and lying to investigators over its trading losses, according to reports out late Thursday.

JPMorgan Chase has been accused of misleading investors and lying to investigators over its trading losses, according to reports out late Thursday.

The claims came from John McCain, who is the senior Republican on the US Senate panel investigating the affair in relations to the $6.0bn losses, the Financial Times said.

He made the statement as the Senate subcommittee published its findings into the trading, risk management failures and subsequent disclosures that lead to last year's incident.

The report looked into disclosures by JPMorgan's Chief Executive Jamie Dimon and Chief Financial Officer Doug Braunstein, who stepped down from the role in the wake of the scandal.

Dimon was accused of withholding information in relation to the company's trading activity in the bank's chief investment office during an earnings call in April.

The Senate found he was "already in possession of information about the ...complex and sizeable portfolio, its sustained losses for three straight months, the exponential increase in those losses during March and the difficulty of exiting the ... positions".

Disclosures from Braunstein, now a Vice-Chairman of the bank, were also suspected of being inaccurate.

JPMorgan said: "While we have repeatedly acknowledged significant mistakes, our senior management acted in good faith and never had any intent to mislead anyone."

The Securities and Exchange Commission is continuing to investigate whether the disclosures the bank made about its portfolio were accurate and timely.

RD

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