Banking, finance, and taxes
J.P. Morgan Still Faces More Senate Testimony Over Derivative Losses Tied to London Whale
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Some politicians just refuse to move on. The woes for Jamie Dimon and friends at J.P. Morgan Chase & Co. (NYSE: JPM) after the trading losses from the London Whale just refuse to go away. Bloomberg television just reported that a panel led by Senator Levin is said to seek testimony on the losses pertaining to the so-called London Whale. The news is on the heels of J.P. Morgan naming Craig Delaney as its CIO.
The Bloomberg report shows that the “wrong-way bets on derivatives” are the focus of the Permanent Subcommittee on Investigations. As of last look, the loss was $5.8 billion. More recent numbers point to about $6 billion, but it may not be known until the next earnings report what the total trading loss really was.
What has happened is that Jamie Dimon has recently sent the London Whale packing, but Chief Investment Officer Ina Drew was forced to resign back in May. How all of the losses and the probe outcome really pertain to Dodd-Frank and to the Volcker Rule will end up remains in the balance.
Shares of JPMorgan Chase are currently up by 4% at $38.60, and it is important to note that this move takes the stock above the point from where shares fell to after the news of the London Whale’s trading loss first materialized. Its 52-week trading range is $27.85 to $46.49.
JON C. OGG
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