As a US Senate hearing with JP Morgan gets underway (watch live), the bank's stock has fallen:
(Source: Yahoo! Finance)
Our own Michael Bow on the senate report:
A US Senate probe into JP Morgan’s $6.2bn (£4.1bn) London Whale loss yesterday slammed senior management at the bank for passing off the risky money making trades as defensive strategies.The report by the Permanent Subcommittee on Investigations claims top executives at the bank, including former finance chief Douglas Braunstein and former chief investment officer Ina Drew, knew the portfolio which led to the losses were not hedges but complex short-term derivatives positions.Bosses at the bank, the biggest in the US, made numerous claims the synthetic credit portfolio, as it was known, functioned as a hedge when in reality it was set to lose money under certain financial conditions.