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Originally Posted by Slava
For all of your disdain with Dimon and JPM I'm surprised that you haven't mentioned that Matt Zames came from LTCM...thats clearly amusing.
The FBI seems like a stretch. It doesn't look like laws were broken and just comes back to the laws not being stringent to begin with. You can't legislate intelligence.
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At the end of the investigation they can consider filing mail and securities fraud charges which would give them lots of discretion. In this case it won't take much if it is not just simply a very large screw up. You can bet there will be a lot of scrutinizing of the trader who took the position and also the supervisors who bear the responsibility for what is said to investors. Based on how many have "been let go" or "retired" etc. there is a lot more to this. It may just be a big screw but I wouldn't be surprised if there was intent to mislead either. I am glad they were caught on the wrong side of the trade regardless but as you point out history just repeats itself over and over again on Wallstreet. You don't need the JP Morgan Asset Management Value Investor Confidence Index to tell you that trust in Wallstreet has never been lower.