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DOJ, SEC Enforcement-Palooza; JPM Update; Rogue Computer Foils Goldman

08/21/13

Receiving Wide Coverage ...

Enforcement-Palooza: JPMorgan Chase may not be the only bank facing impending enforcement action. In an interview with the Wall Street Journal, U.S. Attorney General Eric Holder promised more cases — or "a series of significant matters" — related to the economic meltdown are on the way. Holder also dropped this sound bite during the interview (when asked, incidentally, about JPM): "No individual, no company is above the law. We don't investigate companies...

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JPMorgan Gives Everyone Déjà vu; Hedge Fund Manager Admits Wrongdoing

08/20/13

Receiving Wide Coverage ... JPM Déjà vu: JPMorgan Chase is having a hard time getting through the day without news of a probe surfacing. Following reports that the Securities and Exchange Commission was investigating whether the bank routinely hired the children of well-connected families in China, anony-mice told the Journal and, later, the FT that the Justice Department is now looking into whether JPM manipulated U.S. energy markets. Scan readers will recall that the bank agreed…

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JPM Faces Probe Over Hiring in China; Merrill Lynch to Dissolve (But Not Disappear) Into B of A

08/19/13

Receiving Wide Coverage ... JPM's Woes Grow … Again: The hits just keep on coming over at JPMorgan Chase. The nation's biggest bank disclosed in a regulatory filing that the Securities and Exchange Commission is investigating its hiring practices in China. "Authorities suspect that JPMorgan routinely hired young associates who hailed from well-connected Chinese families that ultimately offered the bank business," explains the Times, which first reported on the filing. The bank told several news outlets…

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Worries Mount over State of China's Banking System

08/16/13

Receiving Wide Coverage ... China's Banking Woes: Multiple stories this morning touch on concerns about China's banks, and not just about credit quality. Finishing up a two-part series about China's banking sector, the Journal reported the growing risk from banks selling bonds to raise cash. China had tried to limit its currency supply in June to constrain funding for "shadow banks", but that created the "unintended consequence" of banks "scrambling for cash. The bond market was…

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London 'Whale' Loomed Large in Trading Probe But Escaped Charges

08/15/13

Receiving Wide Coverage ...

It's Official: In a widely expected announcement, prosecutors formally charged Javier Martin-Artajo and Julien Grout for their actions to allegedly try to hide JPMorgan Chase losses stemming from the disastrous "London Whale" trades last year. But in addition to the straight news reporting by the Journal, Times, FT and Washington Post, three of the papers also dug into the details around how Bruno Iksil — the London Whale himself — avoided prosecution...

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Fed Chair Fight Continues; Charges Planned in 'Whale' Case

08/14/13

Receiving Wide Coverage ...

Yellen v. Summers: The growing controversy over who will succeed Fed Chairman Ben Bernanke garnered more attention in the major papers. The Journal focused on behind-the-scenes efforts by the White House to "quash the campaign" by Senate Democrats, who have been pressuring President Obama to nominate Fed Vice Chairman Janet Yellen. Apparently, the "message" has been received. "In recent days, top Democratic senators have vowed to support whomever he picks." Not getting...

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Commodities Arms Still Draw Attention; NY Sues Payday Lender

08/13/13

Receiving Wide Coverage ...

Probe of Banks' Commodities Role: It is apparently not enough that banks are winding down some of their commodities operations to evade scrutiny over alleged price manipulation. It was widely reported Monday that the Commodity Futures Trading Commission issued subpoenas to institutions with subsidiaries that store and deliver aluminum, seeking documents as part of an investigation. "The subpoenas come," according to the Wall Street Journal, "amid heightened scrutiny of Wall Street's involvement...

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Where in the World Are the London Whale Traders?

08/12/13

Receiving Wide Coverage ...

Where in the World are the London Whale Traders? The latest developments in the London Whale investigation may not make for a catchy a cappella tune, but the timing of a grand jury indictment and possible charges against the JPMorgan [JPM] traders at the focus of federal authorities' criminal investigation may hinge on the whereabouts of Javier Martin-Artajo and Julien Grout. ...

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JPM Weighs Admission in 'Whale' Case; SAC Seeks Deal to Stay Open

08/09/13

Receiving Wide Coverage ... London Whale Investigations: Federal probes into JPMorgan Chase's disastrous 'London Whale' trades may finally be coming to a close. The Journal reported that Whale trader Bruno Iksil is "unlikely to face charges" from the fiasco, but that "Mr. Iksil is no longer a focus of investigators, people familiar with the situation said." The FT said the bank is set "to admit wrongdoing in a civil settlement with" U.S. and U.K. officials. The…

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JPM Discloses Criminal Probe; Grameen Bank Faces Nationalization

08/08/13

Receiving Wide Coverage ...

JPM Under Fire: JPMorgan Chase disclosed in a filing on Wednesday that the U.S. Justice Department has opened up a criminal and civil probe into its sale of mortgage-backed securities leading up to the crisis. Per the filing, investigators have "preliminarily concluded that the firm violated certain federal securities laws" while selling subprime mortgage securities to investors. Both JPM and the DOJ are declining to comment further at this time. News outlet...

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