John Carney, CNBC
The Senate report on JPMorgan Chase’s London Whale fiasco revealed that federal regulators secretly downgraded the bank’s management rating last summer—a fact kept from investors and the public until last week.
The downgrade of JPMorgan’smanagement resulted from the Office of the Comptroller of the Currency finding that the bank suffered from “lax governance and oversight in the chief investment office,” as well as other “oversight deficiencies,” according to the Senate report.
This news is another blow to JPMorgan, which had long enjoyed the reputation of being one of the best managed megabanks in the U.S. That reputation was alreadydiminished by the derivatives trading losses in its London chief investment office. And then there was that report from the Federal Reserve citing weaknesses in JPMorgan’s capital planning process.