This should not be a surprise for anyone…
* Investment bank bet against CIO in derivatives market
* Bank said to have discussed merging opposing trade books
* Opposing bets could fuel claim JPM is too big to manage
By Emily Flitter
NEW YORK, Jan 29 (Reuters) – There is a new twist in the London Whale trading scandal that cost JPMorgan Chase $6.2 billion in trading losses last year. Some of the firm’s own traders bet against the very derivatives positions placed by its chief investment office, said three people familiar with the matter.
The U.S. Senate Permanent Committee on Investigations, which launched an inquiry into the trading loss last fall, is looking into the how different divisions of the bank wound up on opposite sides of the same trade, said one of the people familiar with the matter.
The committee is expected to release a report on its investigation in the next few weeks.