The following article is brought to you by Nathan Vardi at Forbes.Com
Jamie Dimon, the chief executive of JPMorgan Chase & Co., is working overtime to try to extricate the nation’s biggest bank from a regulatory and prosecutorial mess that stretches from Washington to London over missteps like the $6 billion in trading losses the bank suffered last year as part of the London Whale debacle.
JPMorgan has reportedly agreed to pay some $800 million and admit wrongdoing in order to settle allegations stemming from the trading losses made by federal and international agencies, including the Securities & Exchange Commission, the Office of the Comptroller of the Currency, the Federal Reserve and the U.K. Financial Conduct Authority.
In the last year, the bank has moved to contain and resolve the controversial trading losses that hit the bank’s chief investment office, but even though financial performance has been strong, law enforcement and regulatory investigations and hurdles have weighed down Dimon and JPMorgan. In a memo Dimon recently wrote to his employees, he pointed out that those issues would continue to cast a shadow over JPMorgan.
“We are all well aware of the news around the legal and regulatory issues facing our company, and in the coming weeks and months we need to be braced for more to come,” Dimon wrote. “Never before have we focused so much time, effort, brainpower, technological power and money on a single, enterprise-wide objective. Make no mistake–we are going to get this right.”
While Dimon tried to resolve the legal and regulatory issues revolving around the London Whale trading losses with one big and sweeping settlement, he was unable to get the Commodity Futures Trading Commission on board and the CFTC continues to investigate issues related to the trading of derivatives underlying the London Whale fiasco. In addition, federal prosecutors in Manhattan continue to investigate the London Whale losses.
Earlier this week, a federal grand jury in Manhattan indicted Javier Martin-Artajo and Julien Grout, two former JPMorgan employees who worked in the chief investment office, alleging they covered-up the trading losses and made false statements.
Shares of JPMorgan have surged in the last year by nearly 30%. Dimon must wonder how high those shares would be trading for if he could get beyond the regulatory and legal headaches.
(CHASEHOMEFINANCESUX RESPONSE: Why Do So Many Of These Writers Never Put A Correlation Between Criminal Actions & Stock Gains. If You Rob & Steal From The People, Your Stocks Will Go Up. I Think This Country Has Decided That Profits Are More Important, Than Stopping The Criminal Actions By The Big Banks. We Are No Longer America, Just A Criminal Society!)