News Summary: Weak controls cited at JPMorgan

AP News
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Posted: Jun 06, 2012 6:15 PM

WEAK CONTROLS AGAINST RISK: JPMorgan Chase had weak controls in place to contain risk in its investment operation that suffered a $2 billion-plus trading loss, a key federal regulator says.

EXAMINING JPMORGAN'S POLICIES: U.S. Comptroller of the Currency Thomas Curry told a Senate panel his agency is examining risk-containment policies at JPMorgan, the biggest U.S. bank, in the weeks before it suffered the trading loss.

DRAFT RULE MIGHT HAVE HELPED: A Federal Reserve official told the panel that a draft rule seeking to prevent banks from trading for their own profit might have flagged JPMorgan's risks earlier.