A United States Senate committee is expected to call in former and current JPMorgan Chase & Co. (JPM) executives to testify about multi-billion dollar trading losses last year.
Last year, a group within JP Morgan called The Chief Investment Office (CIO) lost $6 billion in trading bets; one trader in London made enough risky derivatives bets to become infamously known as “the London Whale.” Government officials are now looking deeper into the case, claiming that JP Morgan did not properly warn regulators or investors that the bank was making the risky bets.
The US Senate Permanent Committee on Investigations is expected to call in former JP Morgan chief financial officer Douglas Braunstein and other executives to testify at a hearing about the losses.
Though Braunstein and other executives have not been charged of any specific wrongdoing, the Senate’s inquiry is casting a new spotlight on JP Morgan’s misstep from a year ago.
JP Morgan has been cooperative in the investigation up to this point, but this new inquiry may come back to haunt executives.
JP Morgan shares were up 25 cents, or +0.50%, during pre-market trading on Tuesday. The stock is up about +21% over the past twelve months.
The Bottom Line
Shares of JP Morgan (JPM) have a dividend yield of 2.44% based on last night’s closing price of $49.10 and the company’s annualized dividend payout of $1.20 per share.
JP Morgan Chase & Co. (JPM) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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