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

Book Review: 'Once In The West'

Tess Taylor reviews Christian Wiman's new collection of poems, "Once in the West."
NPR

'How To Cook Everything Fast'? Bittman Says Skip The Prep

Rachel Martin talks to food writer Mark Bittman about his new cookbook, "How to Cook Everything Fast," which thumbs its nose at the French tradition of having ingredients prepped before you cook.
WAMU 88.5

New D.C. Bill Would Require Uber To Provide Liability Insurance Coverage

D.C. Council Member Mary Cheh is proposing legislation to end the regulatory vacuum critics say has placed Uber users at risk.
NPR

EBay Spins Off PayPal Into Fast-Changing World Of Mobile Payments

Commerce and payments are splitting up. Ebay is breaking away from PayPal and its payments operation will turn into a separate, publicly traded company.

Leave a Comment

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