Washington: A criminal investigation has been launched into the $2 billion trading loss at JPMorgan Chase by the Justice Department, a law enforcement source privy to the development informed.
The news came as Jamie Dimon, the embattled chief executive of JPMorgan Chase, faced questions from shareholders Tuesday.
He held yearly shareholder meeting in Tampa and spoke about the surprising loss, terming the mistakes ‘self-inflicted’. The meeting lasted for an hour. “This should never have happened,” Dimon said.
Earlier, Treasury Secretary Timothy F. Geithner said the bank’s loss strengthens the case for financial regulation. He added that regulators are “going to take a very careful look at this incident.”
Voting was held in the Tampa meeting on various proposals. Among others, there was a proposal that would separate that roles of the bank’s chairman of the board and the chief executive. It did notpass, however.
“We believe in strong, simple, good regulation,” said Dimon, adding that it’s “not simply a question of more or less” oversight.
Dimon said Tuesday that he is “not involved at all in the supervisory side” of the New York Fed. “It’s not like a board,” said Dimon. “It’s more like an advisory group in my opinion.”
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