silvervigilante.com / By SV / January 29, 2013
The traders involved in the London Whale trading fiasco apparently bet against the very derivatives positions placed by its chief investment office, according to three people familiar with the matter. The US Senate Permanent Committee on Investigations launched an inquiry into the trading loss last fall so as to determine how different divisions of the bank wound up on opposite sides of one trade.
The report compiled by the committee is to drop in the next few weeks.
The people familiar with the matter have not commented on the dollar value of the opposing trades placed by JP Morgan Chase & CO’s investment bank traders, which was evidently smaller than the total positions put on by the CIO. The intra-bank trading went unmentioned in a 129-page report JP Morgan released on January 16, which chronicled some of the bank’s risk management failures throughout the London Whale fiasco. The scandal has led to a number of management changes at JP Morgan and has damaged Jamie Dimon’s image and led to a 50 percent cut in his once $23 million pay.