Fraud is FRAUD, who cares when it began but if anyone wants to know, Top JPMorgan execs weren’t as blindsided as you might have thought about the risky trades that cost the bank a couple of billion dollars…Insiders in the unit responsible for the losses say that worries about risk-taking by London traders—including the one known as the “London whale”—began as far back as 2010. (H/T Newser)
Reuters-
The last time I wrote about the securities fraud class action claims against JPMorgan Chase for the losses it suffered in risky credit default swaps, I told you to pay attention to the unusually short class period alleged in the early complaints. The first couple of filings claimed the bank’s deception of investors began on April 13 — the day JPMorgan CEO Jamie Dimon told analysts that news reports about the dangerous trading position of its chief investment office were a “tempest in a teapot” — and ended on May 10, when the bank disclosed the initial $2 billion loss of the “London Whale.”
Two institutional investors joined the JPMorgan fray last week in federal court in Manhattan, and suddenly the class period has become a point of controversy. A pipefitters’ union trust fund represented by Labaton Sucharow claims that the bank’s fraud began not on April 13 but three months earlier, on Jan 13. That was the date JPMorgan filed an annual report with the S e curities and Exchange Commission that allegedly failed to warn investors about the looming CIO losses, “instead offering a false and misleading picture of stable and consistent operational strategy and risk exposure.”
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