The New York Times reported that as federal authorities prepare to criminally charge two former JPMorgan Chase employees suspected of misrepresenting a multibillion-dollar trading loss last year by falsifying bank records, prosecutors in Manhattan are separately exploring ways to penalize the bank over the trading blowup that has come to be known as the “London Whale.”
The Times said, according to people briefed on the matter, the investigation could yield a fine and a reprimand of the bank for allowing the suspected wrongdoing to occur.
The Times also noted that prosecutors at the U.S. attorney’s office in Manhattan could also force the bank to bolster internal controls that failed to thwart the trading loss. The action would come in addition to civil charges from the SEC, which could announce a settlement with the bank as soon as this fall, the Times said.
To read the New York Times story click here.