JPMorgan Knew Of Risks, 'WSJ' Reports | WAMU 88.5 - American University Radio

NPR : News

Filed Under:

JPMorgan Knew Of Risks, 'WSJ' Reports

"Some top JPMorgan Chase executives and directors were alerted to risky practices by a team of London-based traders two years before that group's botched bets cost the bank more than $2 billion," The Wall Street Journal is reporting.

The Journal says it reached that conclusion after "interviews with more than a dozen current and former members of the bank's Chief Investment Office, the unit responsible for the losses."

And it adds that "last year, top CIO executives set a plan to roll back a separate set of large London trades — only to learn later that the plan hadn't been followed correctly."

This news comes one day before JPMorgan CEO Jamie Dimon is due before the Senate Banking Committee, which has scheduled a hearing on "A Breakdown in Risk Management: What Went Wrong at JPMorgan Chase?"

As we've previously reported, the banks losses on the bets were initially estimated at $2 billion — but have been growing.

Monday, Reuters columnist David Cay Johnston looked at JPMorgan's experiment with "hedginess" — a play on Stephen Colbert's truthiness.

Copyright 2012 National Public Radio. To see more, visit http://www.npr.org/.

NPR

Nazi-Era Art Cache Brings Provenance Issues To Swiss Museum

Audie Cornish talks to Jonathan Petropolous, professor of European History at Claremont McKenna College, about the acceptance of Nazi-era art by the Museum of Fine Arts Bern in Switzerland.
NPR

Sandwich Monday: The Thanksgiving Hot Durkey

For this week's Sandwich Monday, we make our own holiday turkey — out of hot dogs.
NPR

Hagel Steps Down After Discord On Syria, Iraq

President Obama announced the defense secretary's resignation Monday morning. Chuck Hagel clashed with White House adviser Susan Rice on Syria policy, and he never made it into Obama's inner circle.
NPR

Half The Battle Over Net Neutrality Is Defining What It Means

President Obama's call for stronger net neutrality rules touched off a round of heated debate. Broadband companies and their allies say the plan is tantamount to "regulating the Internet" and would hurt innovation. But net neutrality advocates say otherwise.

Leave a Comment

Help keep the conversation civil. Please refer to our Terms of Use and Code of Conduct before posting your comments.