WASHINGTON, Jan 8 (Reuters) - The New York Federal Reserve Bank offered sharp criticism of an internal probe carried out by the Fed’s inspector general on the handling of J.P. Morgan’s “London Whale” case, according to a full version of the probe released on Thursday.
The New York Fed said the inspector general was “wrong” to criticize examiners for failing to prioritize exams of J.P. Morgan’s chief investment office, according to the report.
The Fed’s Office of the Inspector General released a 4-page summary report in October on the London Whale case, which involved JPMorgan’s credit derivative trading losses in Europe in 2012. The losses were connected to the bank’s chief investment office (CIO) and ballooned to $6.2 billion by the end of that year.
The Inspector General report in October was critical of the New York Fed’s supervision of J.P. Morgan and offered recommendations on how it could improve its oversight.
The 77-page report released on Thursday marked the first time the New York Fed’s criticism of the probe was made public. (Reporting by Emily Stephenson, Sarah Lynch, Michael Flaherty; Editing by Ken Wills)