03/15/2013 01:50 pm ET

Ex-Bailout Watchdog: JPMorgan's Actions 'Entirely Consistent With Fraud'

Neil Barofsky, the former watchdog for the government's financial crisis bailout program, tweeted Friday that JPMorgan Chase appears guilty of "fraud," or something very much like it:

Barofsky was referring to Sen. Carl Levin's (D-Mich.) questioning of top JPMorgan executives during a Friday Senate hearing in regards to the bank's 2012 loss of more than $6.2 billion dollars, often referred to as the "London Whale" scandal. The hearing, as well as a Senate report released late Thursday, are the culmination of a nine-month investigation into the loss.

The Senate report found, among other things, that JPMorgan reported inaccurate information, misleading investors and regulators to cover up their growing losses. The report says the bank "used those more favorable prices" in order to avoid reporting losses.


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