FINANCIALTIMES: …Shares in JPMorgan rallied after the bank announced progress in unwinding the trading positions of the London-based unit whose losses were first disclosed in May. On Friday, it gave a fresh assessment of losses: $5.8bn to date with up to $1.7bn still to come. That reduced the uncertainty.
There will be “clawbacks” of bonuses, the bank announced, for the three traders at the centre of the fiasco and a “voluntary” clawback for Ina Drew, who led the chief investment office (CIO) where the traders worked. That helped with accountability.
But there are now more questions to answer – and more fodder for a probe by the Federal Bureau of Investigation, after JPMorgan announced that it was restating the previous quarter’s earnings because traders may have covered up losses… (more)
