Bank Regulators Under Scrutiny

    People walk past the JP Morgan Chase  Building on Park Avenue  May 15, 2012 in New York.  The US Justice Department has opened an investigation into JPMorgan Chase's more than $2 billion trading loss that the Wall Street bank announced last week, media reports said Tuesday.       AFP PHOTO  TIMOTHY A. CLARY        (Photo credit should read TIMOTHY A. CLARY/AFP/GettyImages)

    Timothy A. Clark, AFP / Getty Images

    More than 110 regulators from the Federal Reserve Bank of New York and the Office of the Comptroller of the Currency work in JPMorgan Chase’s offices, and they keep an eye on the bank’s operations. Except when they don’t. Somehow, these scores of government regulators missed the bum trades in the chief investment office that led to massive losses at one of the nation’s largest banks. Anonymous sources told The New York Times that even as this unit of the bank continued to grow, making increasingly larger investments, regulators did not increase their oversight and failed to place personnel in key offices in London and New York.

    Read it at The New York Times