In an interoffice memo leaked to news outlets Tuesday, Dimon warned of "more to come" in the "weeks and months" ahead, regarding "legal and regulatory issues facing our company." He also said the company was taking extraordinary measures to deal with those challenges, measures evidenced by plans to hire thousands of new workers.
Numerous reports have indicated JPMorgan was ready to pay fines of up to $700 million or $800 million to settle with the Department of Justice and federal bank regulators over misconduct related to the "London Whale" hedge trading losses last year. The Wall Street Journal on Tuesday reported that the Commodity Futures Trading Commission was also conducting a London Whale-related investigation.
According to the unnamed sources cited in the Journal report the CFTC is "focusing on a giant trading position that enforcement officials believe distorted prices and misled investors," during 2012.Despite the reported large settlement, JPMorgan -- the company, and not individual employees, some of whom have already been indicted over the London Whale fiasco -- is still facing possible criminal charges from the Justice Department. JPMorgan is facing $4 billion in expenses and fees related to the mounting regulatory challenges it faces. Meanwhile, two ex-JPMorgan traders were indicted for their role in the $6.2 billion trading loss known as the London "Whale." The indictments were unsealed in a Manhattan court Tuesday. The charge of securities fraud carries a maximum sentence of 20 years in prison. The indictment names Javier Martin-Artajo, who oversaw trading strategy for the synthetic portfolio at the bank's chief investment office in London, and Julien Grout, a trader who worked for him, in the indictment. According to media accounts of Tuesday's hearing, a lawyer for Grout accused the prosecution of being politically motivated and declared Grout's innocence. The defense argument is seeking to portray Grout as a lower-level employee merely following the instructions of his managers. -- Written by TheStreet staff in New York
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV