Senate JPMorgan 'Whale' Probe Said To Gather Pace

JPMorgan's wrong-way bets on derivatives are the focus of an escalating investigation by a U.S. Senate panel led by Carl Levin that has grilled executives from banks including Goldman Sachs and HSBC, three people briefed on the inquiry said.

Bloomberg reports that Levin’s Permanent Subcommittee on Investigations is seeking testimony from those who worked in or helped lead JPMorgan’s Chief Investment Office, according to the people, who asked not to be identified because the inquiry isn’t public. The unit’s London staff lost at least $5.8b this year on the botched wagers, which were large enough to shift markets.

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JPMorgan Said to Face Escalating Senate Probe of CIO Loss

In the meantime, The New York Times reports that as it works to move past the multibillion-dollar trading loss tied to a complex credit bet, JPMorgan has been reshuffling its management ranks - focusing specifically on the Chief Investment Office, the powerful unit at the center of the soured trade.

The latest move came on Thursday, when the bank announced that Craig Delany, who was most recently the Chief Operating Officer of JPMorgan’s mortgage banking unit, would take the helm of the Chief Investment Office.

Hit the link below to access the complete New York Times article:

JPMorgan Names New Head of Chief Investment Office

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