JPMorgan Chase & Co. (JPM:US), the largest U.S. bank by assets, restated first-quarter results to reduce net income by $459 million after a review of the firm’s chief investment office found that employees may have hid losses.
Net income was $4.92 billion, rather than the $5.38 billion previously reported, the New York-based bank said today in a regulatory filing. The CIO was responsible for trading losses that the bank estimated at $2 billion in May.
“Recently discovered information raises questions about the integrity of the trader marks, and suggests that certain individuals may have been seeking to avoid showing the full amount of the losses being incurred in the portfolio during the first quarter,” the bank said.
Chief Executive Officer Jamie Dimon is seeking to restore confidence in the bank after initially calling reports on the CIO’s trades a “complete tempest in a teapot” as the bank released first-quarter earnings in April. The bank today said it found a material weakness in internal controls for that period.
To contact the reporter on this story: David Scheer in New York at firstname.lastname@example.org
To contact the editor responsible for this story: David Scheer at email@example.com