SEC investigates ex-JPMorgan debt traders
SEC investigates ex-JPMorgan debt traders
By Kara Scannell and Joe Rennison in New York - April 3 2016
The top US securities watchdog has launched an investigation into government debt trades made by two former JPMorgan Chase employees who left the bank earlier this year after a dispute over compliance procedures
The Securities and Exchange Commission inquiry, which is in its early stages, steps up the pressure on JPMorgan and comes amid greater regulatory scrutiny of the opaque $13tn Treasury market
The Financial Industry Regulatory Authority, the industry watchdog, has already said that it was looking into the traders’ termination. Finra is also investigating the circumstances of the disclosures JPMorgan made when explaining the traders’ exit, a person familiar with the matter said.
In January, Andrew Lombara, then JPMorgan’s head of US Treasury trading, and Chi Lee, a junior Treasury trader, left after a disagreement with the bank’s valuation committee over the amount of reserves taken for certain Treasury trades known as strips, people familiar with the matter have said.....
Full article:
http://www.ft.com/intl/cms/s/0/6b0616e4-f854-11e5-803c-d27c7117d132.html#axzz44rlsqgBf
