Will JPMorgan’s Bad Bets Raise Global Financial Systemic Risk?
JPMorgan (NYSE:JPM) managers are meeting daily with regulators from the Office of the Comptroller of the Currency, who are seeking to reduce risk associated with the bank’s failed hedging strategy, which notoriously produced at least $2 billion in losses that came to light early last month.
OCC chief Thomas Curry said the trading loss, though it will affect JPMorgan’s earnings, will not present a solvency issue, and doesn’t threaten the broader financial system.
According to prepared testimony obtained by Reuters that will reportedly be delivered before the Senate banking Committee on Wednesday, Curry said that OCC examiners have found no activity at other large banks similar in scale or complexity to JPMorgan’s risky betting.
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