The Senate Permanent Subcommittee on Investigations issued a scathing bi-partisan report last night. Fifty of the 300 pages of the report were devoted to a section entitled “misinforming investors, regulators and the public” in which Dimon was front and center. [...] But the report, citing Rules 10b-5 and Section 17(a) of the Securities Act of 1933, made it clear: Dimon did not appropriately disclose what he knew when he knew it. [Fortune]
THE DAMNING bipartisan Senate Permanent Subcommittee on Investigations report is available online.
From Matt Taibbi’s liveblogging the Senate Hearing on “J.P. Morgan Chase and the Infamous “London Whale” Episode”:
11:41 a.m. Shit is heating up.
First, Levin points out that on Aptil [sic] 13, 2012, Chase had an internal report showing $1.2 billion in losses in the fund in question. Former Chief Investment Officer Ina Drew was privy to that report. April 13 was a Friday. On the following Monday, Drew met with the OCC and told them the losses were at $580 million. When Levin grills her about why she did that, Drew non-replies, saying, “The OCC to the best of my knowledge was given daily profit and loss reports” for the time period in question.
In other words, never mind that I lied — the OCC should have been able to figure this out on their own, because we were sending them reports with all the raw data. Of course, they didn’t send data all the way throughout
12:35 It’s just unbelievable, what this company has gotten away with. …
Obama’s favorite banker, Jamie Dimon, also the darling of the talk show set, has some explaining to do. But since J.P. Morgan Chase really is too big to fail, what difference does it all make?
The deck chair shuffling on the ship U.S.A. Money Game isn’t going very well and the water’s still coming in.