Sen. Levin: Feds should review risk limit breaches

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Sen. Levin: Feds should review risk limit breaches
from MarketWatch.com - MarketPulse
WASHINGTON (MarketWatch) - At a hearing about J.P. Morgan Chase & Co.'s more than $6.2 billion credit derivatives trading loss, Sen. Carl Levin on Friday said federal regulators should track and investigate trading activities that cause large breaches of internal bank risk limits. Levin, the chairman of the panel, noted that the bank breached key risk limits 170 times in the first three months of 2012, followed by 160 breaches in the next month. The hearing is set to hear from the big bank's former chief financial officer, Douglas Braunstein, and its former chief investment officer, Ina Drew. Levin made a series of recommendations on how to respond to the losses, after releasing a report on the trading loss Thursday.