The Banking and Strategy Initiative

Chillin' out till it needs to be funded

J P Morgan defends to Richard Shelby at the Senate Banking Committee

JP Morgan probably is still looking for a line in the sand regulators won’t cross as SEC chair Mary Shapiro testified today that they are reviewing JP Morgan’s Financials again at the Financials and Risk submissions made by JP Morgan for weeks before the May 10 announcement. JP Morgan maintains there were no losses to speak of in Q1 while Bruno’s positions in the CIO’s office as the lone ‘shark’ in the illiquid CDS market was talk of Wall Street in Feb and March

Also cheering up the regulation hawks this week was Gary Gensler of CFTC breaking his silence. Gensler had refused to speak about CFTC collapse to regulators and in criminal proceedings. e had recused himself as he was a colleague of MF Global CEO Jopn Corzine. After the recusal it was tough to make him speak at any other proceedings incl those at the Senate Banking Committee, but Shelby was ready with a sub poena this time to make Gensler speak. Gensler spoke freely today afternoon of events leadign to the colalpse of MF Global even as Shelby apparently did not need to wave the sub poena after all. Ofcourse both Shapiro and Gensler thought it wise to finally bury JP Morgan before Dimon’s testimony comes up in the afternoon.


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