Arab Today, arab today regulators to review jpmorgan\s trading losses
Last Updated : GMT 14:14:03
Arab Today, arab today
Arab Today, arab today

Regulators to review JPMorgan\'s trading losses

Arab Today, arab today

Arab Today, arab today Regulators to review JPMorgan\'s trading losses

Washington - AP

The head of the Commodity Futures Trading Commission says the agency has begun an investigation into JPMorgan Chase\'s ill-timed bet on complex financial instruments that led to more than $2 billion in trading losses. Chairman Gary Gensler said Monday that the investigation is \"related to credit derivatives products as traded by the chief investment office of JPMorgan Chase.\" He declined to give any details. Ina Drew, who as the bank\'s chief investment officer oversaw the trading group responsible for the loss, left JPMorgan (JPM) last week. Under the 2010 financial overhaul law, the CFTC gained powers to monitor trading in indexes of derivatives. JPMorgan invested heavily in an index of insurance-like products that protect against default by bond issuers. Hedge funds bet that the index would lose value, forcing JPMorgan to sell investments at a loss. The Securities and Exchange Commission is investigating JPMorgan\'s disclosures to shareholders about the trading loss. And the FBI has launched a preliminary criminal investigation into the loss at JPMorgan, the biggest U.S. bank by assets. Gensler said the loss, which occurred in JPMorgan\'s operation in London, points up \"the risks that can come back here into the U.S. … The risk crashing back to our shores.\" Speaking to reporters after a speech, Gensler said the JPMorgan episode is a fresh reminder of how big financial institutions\' operations abroad can magnify risks. The incident weakens industry arguments that regulation should be scaled back, he said. It was the London-based subsidiary of American International Group Inc. that dealt in the financial contracts that pushed that insurance giant to the brink of collapse in September 2008. The government stepped in with $182 billion in taxpayer aid, the biggest bailout of the financial crisis. A part of the financial overhaul law, known as the Volcker rule, is designed to prevent banks from placing bets for their own profit. This is known as proprietary trading. The idea is to protect depositors\' money, which is insured by the government. If a bank\'s losses wiped out those deposits, taxpayer money would have to be tapped. Regulators are finalizing the Volcker rule. JPMorgan CEO Jamie Dimon has been among its most vocal critics. He argues that his firm\'s trading loss came from a hedging strategy that backfired, not from a bet with the bank\'s own money. The big Wall Street banks won an exemption in the rule: It would let them make such trades to hedge not only the risks of individual investments but also the risks of a broader investment portfolio. Dimon said Monday that JPMorgan is suspending plans to buy back its own stock. He said the bank will continue to pay a dividend despite the trading loss, which he called \"an embarrassment\" and \"a black mark.\"

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today regulators to review jpmorgan\s trading losses Arab Today, arab today regulators to review jpmorgan\s trading losses

 



Arab Today, arab today
Arab Today, arab today Mohamed Bahari prepares new collection for spring 2017

GMT 06:15 2017 Monday ,27 February

Mohamed Bahari prepares new collection for spring 2017
Arab Today, arab today As Olympics loom, China plunges into snow biz

GMT 10:08 2017 Tuesday ,28 February

As Olympics loom, China plunges into snow biz
Arab Today, arab today Sheds light on major steps in 12-year career

GMT 06:07 2017 Monday ,27 February

Sheds light on major steps in 12-year career
Arab Today, arab today UN envoy sets out framework

GMT 07:25 2017 Monday ,27 February

UN envoy sets out framework
Arab Today, arab today Kalam Nawaem made a difference in social issues

GMT 06:43 2017 Tuesday ,28 February

Kalam Nawaem made a difference in social issues

GMT 05:34 2017 Monday ,27 February

Brexit sows seeds of doubt for British farmers

GMT 06:38 2017 Sunday ,26 February

US rig count increases

GMT 06:01 2017 Sunday ,26 February

BRIC funds see inflows amid emerging equity boom

GMT 05:43 2017 Sunday ,26 February

Al-Gergawi quits Dubai Holding to focus on govt role

GMT 05:14 2017 Sunday ,26 February

Oil prices to average $50-$70 through 2022

GMT 14:44 2017 Saturday ,25 February

China overtakes US as Germany’s top trade partner
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Parliament considers solutions to overpopulation

GMT 20:27 2017 Monday ,27 February

Parliament considers solutions to overpopulation
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Aspires present the story of Egypt’s first president

GMT 06:18 2017 Sunday ,26 February

Aspires present the story of Egypt’s first president
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 06:42 2017 Saturday ,25 February

Reasons for the delay 'On the Stairs of Servants'

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"

GMT 10:51 2017 Saturday ,25 February

Pigs with edited genes show resistance

GMT 18:28 2017 Saturday ,25 February

Tourist guide explains types of tourism

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 06:28 2017 Tuesday ,28 February

Dumbphones survive rise of the smartphone

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday