Advertisement

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.

Advertisement - Article continues below

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

Advertisement
Advertisement

Recommended

Visit/investments/investment-strategy/601044/broker-safety-your-questions-answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
Visit/investments/investment-strategy/600861/how-demographics-affects-stock-valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Visit/investments/stocks-and-shares/600863/sirius-minerals-anglo-american-takeover
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Visit/investments/stockmarkets/600634/why-investors-should-be-cautiously-bullish-for-2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Visit/investments/commodities/industrial-metals/601401/money-printing-infrastructure-base-metals-copper
Industrial metals

Governments’ money-printing mania bodes well for base metals

Money is being printed like there is no tomorrow. Much of it will be used to pay for infrastructure projects – and that will be good for metals, says …
27 May 2020
Visit/economy/eu-economy/601422/heres-why-investors-should-care-about-the-eus-plan-to-tackle-covid-19
EU Economy

Here’s why investors should care about the EU’s plan to tackle Covid-19

The EU's €750bn rescue package makes a break-up of the eurozone much less likely. John Stepek explains why the scheme is such a big deal, and what it …
28 May 2020
Visit/investments/funds/601385/in-support-of-active-fund-management
Funds

In support of active fund management

We’re fans of passive investing here at MoneyWeek. But active fund management has its place too, says Merryn Somerset Webb.
25 May 2020