March 5 A U.S. senate committee, which began an
inquiry into JPMorgan's multi-billion dollar trading
loss last year, is expected to fault certain executives in its
report for allowing the bank to build bets without fully warning
regulators and investors, the New York Times reported, citing
people briefed on the inquiry.
The U.S. Senate Permanent Committee on Investigations could
ask Douglas Braunstein, who was chief financial officer at the
time of the losses, and other senior executives to testify at a
hearing this month, the people told the paper. The Senate
committee's report is due to be released on March 15.
JPMorgan, which has been cooperating with the investigation
and discussed the findings with the subcommittee, declined to
comment to the New York Times.
Braunstein and other bank executives have not been accused
of any wrongdoing, and he is not the focus of a separate law
enforcement investigation into the trading loss, according to
Last year, JPMorgan lost $6 billion in trading bets that
came from a group called the Chief Investment Office (CIO),
which managed risk for the bank and invested deposits.
The CIO group in London took large bets on derivatives, with
one trader taking big enough positions to be called "the London