Friday, August 9, 2013

S.E.C. Is Said to Press JPMorgan for an Admission of Wrongdoing -

The S.E.C. has scrutinized JPMorgan Chase over whether its London traders falsified records to hide losses from executives in New York.Newly confirmed S.E.C. Chair Mary Jo White seems to be rising to the challenge we noted back in March: to differentiate herself from her erstwhile corporate clients.   We urged that she accept the suggestion of past chair Harvey Pitt:  withdraw the challenge to Judge Jed Rakoff's rejection of the SEC-Citigroup CDO derivatives trading settlement, which required no admission or finding of wrongdoing. - GWC

S.E.C. Is Said to Press JPMorgan for an Admission of Wrongdoing -

Federal regulators are seeking to level civil charges against JPMorgan Chase and extract a rare admission of wrongdoing from the nation’s biggest bank as an investigation into a multibillion-dollar trading loss enters its final stage.If JPMorgan concedes to some wrongdoing in a settlement, such an admission would set an important precedent for the Securities and Exchange Commission, coming after decades of allowing defendants to “neither admit nor deny wrongdoing.” A pact could come as soon as this fall, according to people briefed on the case, who added that the agency had not threatened to charge JPMorgan executives in the case.The losses in the case — which have now swelled to more than $6 billion — stemmed from outsize derivatives wagers made by traders at JPMorgan’s chief investment office in London

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