JPMorgan Chase faced more critics Tuesday, this time from some of its own shareholders at its annual meeting in Tampa, Fla. This comes after the bank disclosed it lost at least $2 billion last week in a bungled trading strategy.
The Securities and Exchange Commission is looking into the surprise loss, and the Justice Department has now reportedly opened a preliminary probe.
JPMorgan executives let shareholders do some venting at Tuesday's meeting.
Two soundbites from CEO Jamie Dimon at today's shareholders meeting
The Justice Department has begun looking into JPMorgan Chase's $2 billion-and-counting loss from a hedge account, The Wall Street Journal reports. It cites "a person familiar with the matter" as its source.
The Journal adds that "the probe is at an early stage and it isn't clear what possible legal violation federal investigators may be focusing on."
The fallout from banking giant JPMorgan Chase's $2 billion — and counting — loss has made its way into the presidential campaign. The president and presumptive GOP challenger Mitt Romney have very different views about the regulation of Wall Street, in particular the Dodd-Frank financial systems overhaul law.
Three high-ranking executives, including one of the most powerful women on Wall Street, are expected to resign from JPMorgan Chase this week because of their roles in the $2.3 billion loss the bank recently suffered when some risky trades blew up in its face.
The Wall Street Journal, which broke that news, also reports that JPMorgan's losses from the "giant trading blunder" keep growing. It cites "people familiar with the situation," as its sources.