NEW YORK ( TheStreet) -- Timing is everything in life, especially when it comes to big news leaks about JPMorgan (JPM - Get Report) in the run-up to their high profile congressional testimony on Wednesday, for which the Senate Banking Committee is already sharpening knives.
The Wall Street Journal ran a big story titled: "J.P. Morgan Knew of Risks." The Journal gained access to "more than a dozen current and former members of the bank's Chief Investment Office, the unit responsible for the losses." That's a lot of access -- and implies cooperation at a high level. The flock of sources revealed systemic and longstanding lack of oversight, which could cost the bank, the Journal said, "as much as $5 billion," when until now much lower figures have been used. $2 billion has been the favorite.
The Journal waits until nearly halfway down to mention CEO Jamie Dimon's testimony, during which he will, as the article puts it, give "a detailed review of what went wrong." Moreover, they make no connection between this unloading of bad news on Monday and Wednesday's testimony.Look: JP Morgan has a challenge on its hands. They did wrong and will, in the wake of their sordid and careless trades and management, have to deal on live television with preening politicians in an anti-Wall Street environment that will applaud a pile-on. In reaction, they leaked out every last morsel of bad news. At the very least, then, there should be no surprises on Wednesday. The Wall Street Journal had a good scoop on JPMorgan. But part of fully understanding the scoop is deciphering why the information fell into the hands of the media when it did.
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