SEC Opens Review of JPMorgan

By JEAN EAGLESHAM

http://on.wsj.com/KVGYzW

The Securities and Exchange Commission has begun reviewing J.P. Morgan ChaseJPM -9.28% & Co.’s disclosures related to the $2 billion trading loss announced by the company Thursday, according to a person familiar with the matter.

The review is at an early stage and hasn’t progressed to the status of a formal investigation, this person said. Such reviews are routine after public companies report unexpected losses that send their stock prices sharply lower.

As a regulator, the SEC oversees J.P. Morgan’s disclosures to investors and the New York company’s broker-dealer operations. The Federal Reserve regulates the bank holding company of J.P. Morgan, while the Office of the Comptroller of the Currency oversees its main banking unit.

SEC officials are looking at accounting and disclosure issues related to the trading loss, according to a person familiar with the matter. SEC officials will have to decide if they believe the loss was disclosed to investors soon enough, the person said.

There are no firm guidelines on when projected trading losses become “material” to investors and thus must be disclosed. That could make it much harder for the SEC to file civil enforcement charges against J.P. Morgan.

SEC Chairman Mary Schapiro told reporters Friday that is “safe to say that all the regulators are focused on this,” Fox Business Network reported.

A spokesman for the SEC declined comment.

Read the rest of the article here: http://on.wsj.com/KVGYzW

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2 total comments on this postSubmit yours
  1. Having the SEC investigate is like having Eric Holder investigate the Obama birth certificate issue, you know, criminals putting on a dog and pony show (although I think it is an insult to dogs and ponies everywhere to use that phrase in this context) with other criminals and showcased by a criminally controlled media to brainwash and pacify the public, aka the end tier victims.

    • @Anonymous… great comment. Seriously funny. I agree in general but still its a step in the right direction and with all the things going on behind the scenes at the moment, who’s to say that this won’t actually have some bite…

      Everything is changing and the past is no longer a guide for the future.

      Truth

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