The SEC has opened a preliminary investigation into the accounting practices of JP Morgan as well as into the company’s public disclosures about their trading, according to an article in the New York Times.
According to the article, JP Morgan’s revised value-at-risk measure could be a focus of the investigation. The company disclosed earlier this year that it changed the way it calculates the metric. A JP Morgan representative stated on May 10th that they had gone back to using the old way of measuring value-at-risk. However, their updated metric could have been responsible for masking or covering some of the risk within their trades.
JP Morgan has not been accused of any wrongdoing at this point as the investigation is still in a very early stage.
If you or someone you know has lost money through JP Morgan investments, please contact Richard Frankowski at 205-747-1903 to discuss your potential legal remedies.