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NY FBI Opens Inquiry into JPMorgan Chase Loss: Sources
NBC New York ^ | 5-15-12 | Shimon Prokupecz and Jonathan Dienst

Posted on 05/15/2012 9:40:00 AM PDT by dynachrome

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.


TOPICS: Business/Economy; Crime/Corruption; News/Current Events
KEYWORDS: hedge; jpmorgan; newyork
Might be interesting, since it is the FBI doing the investigation
1 posted on 05/15/2012 9:40:03 AM PDT by dynachrome
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To: dynachrome

Better the FBI than the SEC and the new Consumer Protection farce. At least the FBI have backgrounds in Accounting. BTW, when will they start investigating sports teams that lose?


2 posted on 05/15/2012 9:46:31 AM PDT by massgopguy (I owe everything to George Bailey)
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To: dynachrome
...the inquiry is not a criminal investigation. The FBI is taking a preliminary look at the incident.

Somebody help me out, what exacly is the crime here? Other than a political prosecution by the Just Us dept that is.

3 posted on 05/15/2012 9:47:34 AM PDT by Drill Thrawl (The United States of America, a banana republic since 1913)
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To: dynachrome

Strange. Obama keeps touting JPM as one of the better run banks.


4 posted on 05/15/2012 9:47:59 AM PDT by randita
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To: Drill Thrawl

I dunno, but maybe it is related to mingling customer funds with the bank funds to make your bets, as Corzine did.


5 posted on 05/15/2012 9:49:28 AM PDT by dynachrome ("Our forefathers didn't bury their guns. They buried those that tried to take them.")
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To: dynachrome
Meanwhile, all the investigations of John Corzine's piggybank, the aptly-named MF Global, are not interfering with Mr. Corzine's money-raising activities on behalf of the man who's in charge of the FBI, SEC, IRS, etc.

Don't worry, I'm being ironic. I know perfectly well there are no investigations of John Corzine and his piggybank. Not only that, but the media -- including the financial media -- never even heard of John Corzine.

6 posted on 05/15/2012 9:54:49 AM PDT by Steely Tom (If the Constitution can be a living document, I guess a corporation can be a person.)
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To: Drill Thrawl

I was wondering the same thing.

Does the FBI normally do investigations that are not ‘criminal investigations’? Or only at the direction of Holder?

Is this a “political fishing expedition” investigation?

A friendly “we just wanted to make sure that your doors were locked” investigation?

An investigation into possible foreign espionage?

A “we were in the neighborhood and just decided to drop by” investigation?

A “nice bank you have there, wouldn’t want anything bad to happen to it” investigation?

Or what?


7 posted on 05/15/2012 9:58:17 AM PDT by Zeppo ("Happy Pony is on - and I'm NOT missing Happy Pony")
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To: Steely Tom

Who is the Jon Corzine person you speak of?


8 posted on 05/15/2012 9:58:19 AM PDT by Drill Thrawl (The United States of America, a banana republic since 1913)
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To: Steely Tom

Corzine raises rainbow crapping unicorns now.


9 posted on 05/15/2012 9:58:19 AM PDT by dynachrome ("Our forefathers didn't bury their guns. They buried those that tried to take them.")
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To: dynachrome

This guy called it two days ago. He predicted that gov’t would get hysterical and order the FBI to investigate.

http://confoundedinterest.wordpress.com/2012/05/13/regulation-jpmorgan-chase-and-the-parable-of-the-titanic-and-eastland/

And don’t be too thrilled about FBI’s impartiality. They report to Holder.


10 posted on 05/15/2012 10:14:10 AM PDT by whitedog57
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To: dynachrome

Hatecrime?


11 posted on 05/15/2012 10:15:03 AM PDT by Theoria (Rush Limbaugh: Ron Paul sounds like an Islamic terrorist)
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To: Drill Thrawl

Oh, sorry, I forgot he spells his name “Jon.” Every “Jon” I’ve ever known has been a phony. I knew a guy who spelled his name “Bil” once too. Also a phony.


12 posted on 05/15/2012 10:16:19 AM PDT by Steely Tom (If the Constitution can be a living document, I guess a corporation can be a person.)
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To: dynachrome

No Co mingling of funds, but it will be interesting to see who was the benefactor of $2,000,000,000 gain. This will come down to the mark to market valuation. The thing with synthetic securities is eventually they are valued in the real world at expiration or unwind. Its albout p&l and inflating the ledger. That is what the FBI will look at. If they should. Sounded like crappy Risk Managment to me.


13 posted on 05/15/2012 10:33:35 AM PDT by guyfromjrz (fresh breath, it speaks for itself.)
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To: Steely Tom
Oh, sorry, I forgot he spells his name “Jon.”

I wasn't commenting on your spelling. I was, in my usual sarcastic way, agreeing with Corzine's apparent anonymity. As to the phony part, I have noticed that as well.

14 posted on 05/15/2012 11:20:02 AM PDT by Drill Thrawl (The United States of America, a banana republic since 1913)
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To: dynachrome
Too bad the FBI is nothing more than a political arm of the Ubama administration.

They used to be respectable.

15 posted on 05/15/2012 11:30:51 AM PDT by E. Pluribus Unum (Do I really need a sarcasm tag? Seriously? You're that dense?)
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