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Is JPMorgan Chase Out of Controls? – Bloomberg

…May 10, Dimon, JPMorgan’s CEO, certified in the company’s first-quarter report with regulators that JPMorgan’s internal controls were effective as of March 31. JPMorgan’s chief financial officer, Douglas Braunstein, certified the same. Both said they had disclosed “any change” that occurred during the first quarter “that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.” They also said the company’s disclosure controls and procedures — a related category of internal controls — were effective.

Those statements were incorrect.  It turns out some of the company’s traders had been mismarking their books….

By the time Dimon and Braunstein certified in May that the company’s controls were effective, the company already had acknowledged that it had given false first quarter value-at-risk numbers for the chief investment office — which was prima facie evidence that its controls had a serious weakness.

via Is JPMorgan Chase Out of Controls? – Bloomberg.

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