Business, Economics and Jobs

FBI Director tells Senate, JPMorgan investigation underway


JPMorgan Chase Chairman and Chief Executive Officer (CEO) James Dimon .


Eric Piermont

FBI Director Robert Mueller told the Senate Judiciary Committee the bureau has launched a preliminary investigation into JPMorgan Chase & Co. following its disclosure of a $2 billion trading loss.

It was Mueller’s first on-the-record confirmation of the probe, according to the Associate Press. Under attorney general guidelines, the bureau may initiate a preliminary investigation on the basis of any allegation or information indicative of possible criminal activity.

JPMorgan Chase CEO Jamie Dimon admitted Sunday on NBC’s Meet the Press he had been “dead wrong” to dismiss concerns about the bank’s trading problems.

"This is a terrible mistake," Dimon said. "In this job, you hope they're small and few and far between. This one is far too big."

Washington is now hearing renewed calls for stricter oversight on financial institutions, Reuters reported.

Dimon recently survived a vote of confidence at the company's annual shareholders meeting in Tampa, Florida.

On Monday, Chief Investment Officer Ina Drew resigned.

The New York Times reported Bruno Iksil, the so-called London Whale at the center of the trading debacle, is expected to leave the bank. Achilles Macris, a top JPMorgan official in London and a senior London trader, Javier Martin-Artajo, are also expected to leave.

More from GlobalPost: JPMorgan admits shock $2BN trading loss

The New York Times recently reported the Securities and Exchange Commission is also investigating JPMorgan's accounting practices and public disclosures. Regulators first learned about the activities in April.




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