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JPMorgan accused of hiding 'huge trading losses' worth $6.2 bn

Last Updated: Friday, March 15, 2013 - 10:12

London: A US Senate panel has accused JPMorgan Chase of hiding its huge trading losses.

The bank lost 6.2 billion dollars in trades last year by an employee nick-named the London Whale.

The Senate Permanent Subcommittee on Investigations found that the bank misled investors and ignored risks.

According to the BBC, in response, JPMorgan said that while they have repeatedly acknowledged mistakes, the firm's senior management acted in good faith."

JP Morgan added that the management "never had any intent to mislead anyone".

The investigation suggested that senior executives, including chief executive Jamie Dimon, were aware of huge losses at the bank, downplaying the risks in public, but also blamed federal regulators for a lack of oversight that allowed the country's largest bank to take on levels of risk.

Republican Senator John McCain said that the bank "gambled away billions of dollars through risky and exotic trades."

It then intentionally hid its losses from investors and the public, showing complete disregard for risk management procedures and regulatory oversight, he added.

ANI

First Published: Friday, March 15, 2013 - 10:12
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