By Tyler Durden on 05/15/2012 12:15 -0400
NY FBI Opens Inquiry into JPMorgan Chase Loss
The FBI in New York has opened an inquiry into JP Morgan Chase’s $2 billion loss, NBC 4 New York has learned.
People familiar with the matter tell NBC 4 New York that the inquiry is not a criminal investigation. The FBI is taking a preliminary look at the incident.
JPMorgan Chase CEO Jamie Dimon disclosed last week that the bank had lost the $2 billion by making a bad bet with so-called credit derivatives.
Investors lopped off nearly 10 percent from JPMorgan’s stock price the next day, and 3 percent more on Monday. Since Dimon made the announcement, nearly $20 billion in market value has evaporated.
Translated: the FBI has been unleashed to investigate how a bailed out TBTF bank with full government backstop can possibly lose money, and to arrest those responsible.