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

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

WASHINGTON - OCTOBER 14: Special Inspector General Neil Barofsky of the Troubled Asset Relief Program (TARP) testifies during a hearing before the House Oversight and Government Reform Committee on Capitol Hill October 14, 2009 in Washington, DC. Barofsky testified on the results of his audit report of the bonus payment to AIG executives. (Photo by Alex Wong/Getty Images)
WASHINGTON - OCTOBER 14: Special Inspector General Neil Barofsky of the Troubled Asset Relief Program (TARP) testifies during a hearing before the House Oversight and Government Reform Committee on Capitol Hill October 14, 2009 in Washington, DC. Barofsky testified on the results of his audit report of the bonus payment to AIG executives. (Photo by Alex Wong/Getty Images)

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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