The FBI has opened an investigation into trading losses at JPMorgan Chase, stepping up pressure on the bank after the US Securities and Exchange Commission (SEC) and the Federal Reserve said they were also looking into the wrong-way bets that led to the losses.
At the same time shareholders backed embattled chief executive Jamie Dimon at the bank’s annual shareholders meeting in Tampa, Florida, voting against a proposal to split the jobs of chief executive and chairman. While shareholders mostly gave Mr Dimon a pass, pressure mounted on the bank to reclaim some of the millions it paid to executives who oversaw the trades.
Mr Dimon said JPMorgan would pursue more disciplinary action against those who were responsible. “We will do the right thing.”
A source familiar with the FBI investigation, opened by the agency’s New York office, described it as being at a preliminary stage. The inquiry was seen in some quarters as necessary given the debate in Washington about bank regulation and reform, and one expert said it raised the level of concern around what happened.
“The FBI looks for evidence of crimes and goes after people who it alleges are criminals. They want to send people to jail,” said Erik Gordon, a professor in the law and business schools at the University of Michigan.
“The SEC pursues all sorts of wrongdoing, imposes fines and is half as scary as the FBI. – (Reuters)
