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Senate Hits JPMorgan Execs on $6B Loss

'London Whale' resurfaces
By Matt Cantor,  Newser Staff
Posted Mar 5, 2013 10:00 AM CST
Senate Hits JPMorgan Execs on $6B Loss
FILE - In this May 14, 2012, file photo, people arrive at JPMorgan Chase headquarters in New York. Legal troubles and regulatory scuffles keep piling up for the banking industry, a fact that's sure to drag down results when the banks start reporting fourth-quarter earnings beginning Friday, Jan. 11,...   (AP Photo/Mark Lennihan, File)

(Newser) – A Senate subcommittee is taking JPMorgan to task over billions in losses tied to the so-called "London Whale." The report, by the Senate Permanent Subcommittee on Investigations, is likely to slam executives over a failure to adequately alert regulators and investors as the bank made big bets. Executives like former CFO Douglas Braunstein could be asked to testify this month, insiders tell the New York Times.

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The report, due out March 15, emphasizes the role of executives, rather than traders, in the $6 billion loss; indeed, emails indicate the "Whale" himself raised flags about the risky trades. With many associated executives now departed from the bank, Braunstein and CEO Jamie Dimon could take the brunt of the heat. The subcommittee may also attack regulators who were apparently warned about some of the JPMorgan's actions. The report could serve as ammunition in a Senate push for tougher disclosure rules, the Times notes. (Read more Senate stories.)

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