JPMorgan can thank Jamie Dimon for this. He owns this problem after going far beyond defending the bank in recent years. Had he not rubbed everyone's nose in how brilliant he thought he was the fallout would have been less. Even the widely disliked Lloyd Blankfein of Goldman knew when to stop talking and lay low.
More on the Commodity Futures Trading Commission (CFTC) investigation via the NY Times:
The commodity commission’s members also voted on Friday to publicly disclose the existence of their investigation soon, an uncommon step that occurs only in the most serious cases. Last year, the agency confirmed that it was investigating the collapse of MF Global, the brokerage firm that misused customers’ money.
In the JPMorgan matter, the C.F.T.C. will potentially examine, among other things, whether the bank’s trading affected the market for credit derivatives — which lie at the heart of the bank’s trading debacle.
While the agency is not the bank’s front-line regulator, it does have jurisdiction over the derivatives industry. It started tracking the bank’s trading in April, one person said, after reports emerged that a London-based trader was taking large bets in credit derivatives that distorted the market. But it was not until recently that the agency opened a formal investigation.