Salon.com > Volcker Rule http://www.salon.com Sun, 26 May 2013 01:38:09 +0000 en hourly 1 http://wordpress.org/?v=3.2.1 Senate report: JPMorgan lied, misled public http://www.salon.com/2013/03/15/senate_report_jpmorgan_lied_misled_public/ http://www.salon.com/2013/03/15/senate_report_jpmorgan_lied_misled_public/#comments Fri, 15 Mar 2013 13:11:00 +0000 http://www.railrode.net/?p=13230041 For those who thought that the financial crisis marked a watershed for Wall Street malfeasance, the latest damning Senate report on the JPMorgan Chase  "London Whale" trading debacle will set you straight.

The investigation into how a bet by a trader -- known as the 'London Whale' for his position so large it could rock the market -- led to losses of $6.2.bn paints found widespread misconduct. According to the Senate report released Thursday, the bank attempted to limit losses using secretive trades and creative bookkeeping. As the Guardian's Heidi Moore noted, one regulator called JPMorgan's efforts to stem losses and keep the public in the dark  "make believe voodoo magic."

According to the report,  the bank had promised regulators it would reduce the size of its bets, but instead, as Moore noted "created a portfolio of trades that metastasized from $4bn to $51bn in only three years, followed by a three-month 'trading spree' that took it to $157bn."

The Senate report notes:

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