JPMorgan May Distance Trades From Bank With Intent Claim
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JPMorgan Chase & Co.’s claim that it found possible employee intent to misprice trades in a unit that lost $5.8 billion may put distance between management and any wrongdoers while providing a road map for U.S. investigators.
“E-mails, voice tapes and other documents, supplemented by interviews” were “suggestive of trader intent not to mark positions where they believed they could execute,” the bank said in a presentation July 13 as it reported net income fell 9 percent to $4.96 billion. “Traders may have been seeking to avoid showing full amount of losses,” the bank said, noting management had concerns about the integrity of the prices used. The bank didn’t provide evidence to support the allegations.