JPMorgan Said to Hire Ex-SEC Enforcement Chief McLucas

[PoliticAverse]

Source: Bloomberg News

JPMorgan Chase & Co. (JPM), the biggest U.S. bank, has hired former U.S. Securities and Exchange Commission enforcement chief William McLucas to help respond to regulatory probes of the firm’s $2 billion trading loss, according to two people with knowledge of the assignment.

The lender’s May 10 announcement of the “self-inflicted” loss spurred reviews by the SEC, Commodity Futures Trading Commission, Office of the Comptroller of the Currency and Federal Bureau of Investigation. JPMorgan has said the losses may increase. Kristin Lemkau, a company spokeswoman, didn’t have an immediate comment on the hiring. The people requested anonymity because the appointment hasn’t been made public.

Investigators may focus on how JPMorgan disclosed the risk of losses, SEC Chairman Mary Schapiro said today in congressional testimony. The agency is studying the veracity of JPMorgan’s first-quarter reports, she said.

McLucas, a Washington-based partner at law firm Wilmer Cutler Pickering Hale & Dorr LLP, led the SEC’s enforcement division from 1989 to 1998. He represented board committees in the collapses of Enron Corp. and WorldCom Inc. McLucas, 61, didn’t reply to a phone call and e-mail seeking comment.


Read more: http://www.bloomberg.com/news/2012-05-22/jpmorgan-said-to-hire-ex-sec-enforcement-chief-mclucas.html

[KeepItReal]

1. "SEC Enforcement" is apparently an oxymoron

Who's expecting any real penalties for JPM or it's execs?

[louis-t]

2. CYA move.

As their losses mount, they will turn to the American taxpayers with puppy-dog eyes and ask for help.

[bluesbassman]

3. And at that point Dimon needs to be told to go pound sand. They're sitting on $30b.

They have been opening new offices at breakneck speed for the last year or two. He has been continually spouting off about how well they've managed their cash reserve. Good, then cover your own losses! Not one penny of taxpayer funds.