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Securities Law

Reports: DOJ Has Joined SEC in Looking at JPMorgan Chase After $2B Trading Loss

Posted May 15, 2012 10:44 AM CDT
By Martha Neil

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Updated: The U.S. Department of Justice has joined the Securities and Exchange Commission in taking a look at what's been happening at JPMorgan Chase & Co. in the aftermath of what could be a $2 billion trading loss by the bank in a relatively short period.

Citing unidentified sources, the Wall Street Journal (sub. req.) says the DOJ has opened an inquiry. However, it isn't clear what potential legal violation could be at issue.

Also using unnamed sources, Bloomberg reports that a "very preliminary" criminal inquiry by the DOJ and the Federal Bureau of Investigation has begun.

A spokesman for the bank did not immediately respond to a request for comment by the news agency.

Meanwhile, the bank's CEO, Jamie Dimon, told reporters that the company may seek pay clawbacks from those involved in approving the big-bucks bad trades, once an inquiry is complete, Reuters reports.

Earlier coverage:

ABAJournal.com: "Chase CEO Suggests ‘Whale’ Swallowed $2B in Profits, Admits ‘Egregious Mistakes’; SEC Opens Probe"

Updated at 11:59 a.m. to include Bloomberg coverage.

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