Reuters - Video

EDITION: U.S. | U.K. | IN

The Trail

Senate harpoons JPMorgan execs

Saturday, Mar 16, 2013 - 03:39

JP Morgan executives faced harsh questions from a Senate panel headed by Senator Carl Levin (D-Michigan) over the bank's so-called whale trades that resulted in a $6.2 billion loss.

▲ Hide Transcript

View Transcript

Our findings open a window into the hidden world of high stakes derivatives trading by big banks. Exposes a derivatives trading culture at JPMorgan. Ohio on a risk. That hid losses. And that misinformed the public. -- swear that the testimony that you're about to give to this subcommittee will be the truth the whole truth and nothing but the truth so help you guys. Clearly mistakes were -- but ultimately my oversight of the synthetic credit but was undermined. I too critical fact that I have come to learn only recently based on the company's public statements. First the company's new -- model was flawed. And significantly understated the real -- in the book reported to me. And second some members of the London team failed to value positions properly. And in good faith. He minimized. Reported in projected losses. And hit for me important information regarding the terrorists of the book. This thing was blown up in the newspaper you have though he had these whale traits he lost. Billions of dollars and you're representing to the public that the regulators got information on those positions. On a regular basis. Senators it turned out that was not true. Senator they've received information. On those positions at a regular basis on the portfolio I'm asking you whether that is accurate. The OCC got the information on those positions on a regular recurring basis is part of your normalized report and asking that as an act. They got information not information saying. I'm every dispute and keep reading AT&T give me the answer that they get the information on those positions on a regular and recurring basis you know what those positions there. That's the position in the oil trade. -- as part of a normalized reporting. Today. They did not get that detailed positions. Regularly OK got summary information I'll settle for -- Russian firm has among other things conducted a comprehensive self assessment of its entire risk organization. And as a result is implementing a series of improvements across the entire firm. Where there is room to improve we can and will do so I clearly -- out having done the review. That these people ultimately war -- marking. We're we're not properly marking their books. During the quarter at least during the course. The middle of march to the end of march and that is what we came to know during the. Course there -- ways in which the march were made word that. What's changed. In order to reduce the loss -- the vote yes to island. You mourned in early 2012. I think it's a matter of record at risk measures predicted massive losses. After the bank lost over six billion dollars. -- stand by your statement that the risk measures were quote garbage and not since quote sensible. That was what our very first reaction. To. A number that. You know was two to three times what we've seen previously and person changes we've made so my first reaction was doesn't look right. -- Clearly yes as we discussed a little earlier it turned out to be. It turned out to be. Predictive.

Senate harpoons JPMorgan execs

Saturday, Mar 16, 2013 - 03:39

Top News »

Investing 201 »

Arian Foster = BlackBerry? Arian Foster = BlackBerry?

Fri, Oct 25, 2013 - (3:16)

Don’t miss these red flags for IPOs Don’t miss these red flags for IPOs

Thu, Oct 10, 2013 - (2:34)

Copycat currency trading Copycat currency trading

Wed, Oct 02, 2013 - (2:28)

When to dump a winner When to dump a winner

Tue, Sep 24, 2013 - (1:55)

Where gold might again attract Jim Rogers Where gold might again attract Jim Rogers

Thu, Sep 19, 2013 - (2:05)

Why savings interest rates won't budge Why savings interest rates won't budge

Fri, Sep 13, 2013 - (2:09)

Buy local? ETFs try the trend Buy local? ETFs try the trend

Thu, Sep 05, 2013 - (2:42)

The better bond funds The better bond funds

Wed, Aug 07, 2013 - (2:40)

Best bargain in 40 years? European stocks Best bargain in 40 years? European stocks

Thu, Aug 01, 2013 - (2:24)

Invest like an activist Invest like an activist

Fri, Jul 26, 2013 - (2:49)

Money Clip »

3 things to do before disaster strikes 3 things to do before disaster strikes

Wed, Sep 18, 2013 - (1:39)

Your must-do money list Your must-do money list

Wed, Sep 11, 2013 - (1:24)

The worst "best" financial advice The worst "best" financial advice

Wed, Sep 04, 2013 - (1:42)

Forget gold: The case for REITs Forget gold: The case for REITs

Fri, Apr 26, 2013 - (1:19)

3 rules for buying a house now 3 rules for buying a house now

Thu, Apr 18, 2013 - (1:39)

“Stalking” your dream home - Money Clip “Stalking” your dream home - Money Clip

Wed, Mar 27, 2013 - (2:50)

3 hidden tax deductions - Money Clip 3 hidden tax deductions - Money Clip

Thu, Mar 21, 2013 - (1:33)

Reuters Investigates »

Re-homing victim: "I could have been dead" Re-homing victim: "I could have been dead"

Wed, Feb 19, 2014 - (8:24)

Cops and loggers in the Amazon rainforest Cops and loggers in the Amazon rainforest

Fri, Jan 10, 2014 - (4:01)

"Passed around like a dog" "Passed around like a dog"

Thu, Aug 29, 2013 - (6:32)

Adopted, then abandoned online Adopted, then abandoned online

Thu, Aug 29, 2013 - (13:21)

How the DEA keeps its secrets secret How the DEA keeps its secrets secret

Mon, Aug 05, 2013 - (1:36)

How education lost its role as the great equalizer - Reuters Investigates How education lost its role as the great...

Mon, Dec 17, 2012 - (7:52)

Jihad Jane: From abused child to American jihadist - Reuters Investigates Jihad Jane: From abused child to American...

Sat, Dec 08, 2012 - (10:01)

Jihad Jane: The order to kill - Reuters Investigates Jihad Jane: The order to kill - Reuters...

Sun, Dec 09, 2012 - (10:39)

Moving Pictures »

Still missing – MH370 Still missing – MH370

Fri, Sep 05, 2014 - (2:05)

Images of August Images of August

Fri, Aug 29, 2014 - (1:00)

Burning Together Burning Together

Mon, Sep 01, 2014 - (2:23)

Mending dolls, teddies and hearts Mending dolls, teddies and hearts

Fri, Aug 22, 2014 - (3:12)

"Old timers" sail the Chesapeake Bay "Old timers" sail the Chesapeake Bay

Mon, Aug 11, 2014 - (2:27)

Burned memories Burned memories

Fri, Aug 08, 2014 - (3:02)

Images of July Images of July

Thu, Jul 31, 2014 - (1:20)

World Cup: passion on the pitch World Cup: passion on the pitch

Fri, Jul 11, 2014 - (1:00)

A refugee in America gives back A refugee in America gives back

Wed, Jul 02, 2014 - (3:25)

A long search for refuge A long search for refuge

Fri, Jun 20, 2014 - (3:04)