Tuesday, June 12, 2012

JPMorgan leaders warned of trading risks before loss

Welcome to the morning roundup. Here's a look at today's banking and finance headlines.

JPM trading. Some top JPMorgan Chase & Co. executives were alerted to risky trading practices well before the bank's $2 billion loss, the Wall Street Journal reports, citing sources familiar with the situation. Discussions about reining in traders started as early as 2010, the Journal writes. JPMorgan CEO Jamie Dimon is expected to testify before the Senate Banking Committee this week.

Financial rules. The U.S., Europe and Japan are behind schedule on implementing measures meant to help avoid future banking crises, according to a panel of regulators and central bankers, the New York Times reports. The U.S. ranked behind China, India and Italy, the Basel Committee on Banking Supervision said.

Stocks edge higher. Markets ticked up this morning as investors continued to scrutinize a bailout plan for Spanish banks, Reuters reports. That's after a brief rally - and, later, a stock market slide - Monday as concerns about European troubles continued.

Household wealth. A Federal Reserve study showed the financial crisis erased 18 years of gains for the median U.S. household net worth, Bloomberg reports. Net worth fell nearly 40 percent from 2007 to 2010, driven largely by the collapse in home prices.

Bank risk. U.S. banks said this year they had cut their exposure to Europe's most troubled economies - but many increased lending and bond buying in Italy, France and other countries, Fortune writes. That might now present a problem in the wake of a Spanish bank bailout.