SEC asking if JPMorgan misled investors
WASHINGTON -- Securities regulators are investigating whether JPMorgan Chase & Co. misled investors in its April earnings statement by failing to disclose a change in how it measured risk, Securities and Exchange Commission Chairman Mary Schapiro said on Tuesday.
"Part of what we are investigating is the extent of that disclosure and whether it was adequate, among other things," Schapiro told lawmakers Tuesday during a House Financial Services hearing.
By omitting the change from its earnings release in April, the bank disguised a spike in the riskiness of a particular trading portfolio by cutting in half its value-at-risk number.
Schapiro said that although companies are not required to disclose such a change in their earnings releases, other SEC rules still require such statements to be truthful and complete