JP Morgan Chase & Co was the target of two separate lawsuits by shareholders on Wednesday, accusing the bank and its management of excessive risk that led to trading losses of at least $2 billion.
A spokesman for JP Morgan Chase declined to comment on the lawsuits, which were filed in U.S. District Court in Manhattan, days after Chief Executive Jamie Dimon’s May 10 statement that a “failed hedging strategy” caused the massive loss over the last month.
“What the Company did not reveal was that those losses were the result of a marked shift in the company’s allowable risk model, undisclosed to investors, and the similarly clandestine conversion of a unit within the company that was touted as providing a conservative risk-reduction function into a risky, short-term trading enterprise that exposed the company to large losses instead,” said one of the complaints
(Read the whole story at: www.reuters.com link to original article
5/16/2012
Grant McCool- Reuters – Shareholders Sue JP Morgan Chase Over Trading Loss – 16 May 2012
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