FBI into action on J.P. Morgan Chase $2 billion trading disaster in finacial firm history

FBI into action on J.P. Morgan Chase $2 billion trading disaster in finacial firm history

New York City : NY : USA | May 16, 2012 at 9:54 AM PDT
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Jp morgan chase cover derivative scandal

Last Thursday, it was revealed the J.P. Morgan Chase had suffered more than $2 billion in trading losses tied to the value of corporate debt.

The FBI now reportedly looking into the 2 billion dollar trading loss at JP Morgan Chase, putting more pressure to the bank after U.S agencies said they were looking into high risk trades that first caught regulators' attention last monht.

Two lawsuit was filed Wednesday in New York against JPMorgan Chase in behalf of investors accusing the bank of misleading shareholders about the $2 billion in trading losses.

One suit was filed by California shareholder James Baker. A second was filed by Arizona-based Saratoga Advantage Trust's financial services portfolio.

It said Dimon and Braunstein made "materially false and misleading statements and omissions" on an April 13, 2012 earnings conference call with investors.

"Defendants misrepresented the losses and risk of loss to the company arising from massive bets on derivative contracts related to credit indexes reflecting interest rates on corporate bonds," the complaint said. "These derivative bets went horribly wrong, resulting in billions of dollars in lost capital for the company and billions more in lost market capitalization for JPMorgan shareholders."

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FBI into action on J.P. Morgan Chase $2 billion trading disaster in finacial firm history
Mary Grace Keiner is based in Lake Mills, Wisconsin, United States of America, and is an Anchor on Allvoices.
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