JPMorgan Chase Faces Full-Court Press of Federal Investigations


JPMorgan Chase Faces Full-Court Press of Federal Investigations

As the nation’s strongest bank, JPMorgan Chase used to be known for carrying special sway with regulators. Now it increasingly finds itself in the cross hairs of federal authorities.

At least two board members are worried about the mounting problems, and some top executives fear that the bank’s relationships in Washington have frayed as JPMorgan becomes a focus of federal investigations.

In a previously undisclosed case, prosecutors are examining whether JPMorgan failed to fully alert authorities to suspicions about Bernard L. Madoff, according to several people with direct knowledge of the matter. And nearly a year after reporting a multibillion-dollar trading loss, JPMorgan is facing a criminal inquiry over whether it lied to investors and regulators about the risky wagers, a case that could accelerate when the Federal Bureau of Investigation and other authorities interview top JPMorgan executives in coming weeks.

All told, at least eight federal agencies are investigating the bank, including the Federal Deposit Insurance Corporation, the Commodity Futures Trading Commission and the Securities and Exchange Commission. Federal prosecutors and the F.B.I. in New York are also examining potential wrongdoing at JPMorgan.

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2 Responses to “JPMorgan Chase Faces Full-Court Press of Federal Investigations”
  1. BOBBI SWANN says:

    Ya know, the naming of this bond trade, “Whale” seems very appropriate to suit Dimon as he is the “whale” and the SEC and all the rest of these so-called ‘investigations’ are merely afraid to reel in the whale! Too bad we don’t have a Jonah this time.

  2. Yode says:

    Notice the part where they bring up JPM is suspected of wrongdoing regarding the Madoff fiasco because they (JPM) failed to report “suspicious activity” on the part of Madoff… HELLLLOOOOOO!!! Is anybody paying attention? Harry Marcopolis was screaming for years about Madoff’s Ponzi Scheme and even reported the fraud directly to “regulators” repeatedly over the years leading up to Madoff’s arrest. Don’t get me wrong, as far as I am concerned, the top executives of all the big banks should go directly to jail, if for nothing else being held liable for the actions of their subordinates under the rule of Respondeat Superior, but to try and imply that the SEC or any other government “regulator” failed to act upon Madoff’s fraudulent activity because an even bigger criminal enterprise didn’t drop the dime on him is an insult to the intelligence of every American.

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