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JP Morgan facing FBI inquiry

JP Morgan & Chase is to face an investigation from the FBI regarding its recent failed hedging strategy.

Last week, it was revealed that the bank - which holds assets worth some $2.3 trillion - had overseen a catastrophic over-investment in a particular fund, which resulted in it losing at least $2 billion.

The financier has since received fierce criticism from policymakers and regulatory bodies and it was announced yesterday (15 May) that Ina Drew - the chief investment officer at the fore of the ill-fated strategy - had left the company with immediate effect.

And it emerged this morning that the FBI has now opened an inquiry to establish exactly how this was allowed to happen, with a source at the body telling Reuters this process is at its preliminary stage.

During JP Morgan's annual meeting yesterday, chief executive officer Jamie Dimon shouldered the responsibility for this trade, adding: "This should never have happened. I can't justify it."

By Asim Shah