The U.S. Securities and Exchange Commission held at least two special meetings in the past week to review the circumstances surrounding JPMorgan Chase & Co. (JPM:US)’s $2 billion loss, according to people familiar with the matter.
The SEC held a closed meeting on Saturday, May 12, and another three days later to discuss “an examination of a financial institution,” according to a news release e-mailed May 15. The agency’s five commissioners held the meetings to find out what staff knew about the losses and to discuss how the agency should respond, said two people who declined to be identified because the discussions weren’t public.
JPMorgan Chief Executive Officer Jamie Dimon said May 10 that the bank made “egregious” mistakes and that the losses of about $2 billion tied to synthetic credit securities were “self-inflicted.” The announcement has spurred reviews by several financial regulators, including the SEC, Commodity Futures Trading Commission, the Office of the Comptroller of the Currency and criminal authorities in New York.
The losses, which could increase by $1 billion or more, originated out of a London unit of JPMorgan’s Chief Investment Office, which is generally responsible for managing the bank’s interest rate, foreign currency and other economic risks.
“At times, changes in commission priorities require alterations in the scheduling of meeting items,” the SEC said in the release. SEC spokesman John Nester declined to comment about the meetings.
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