JPMorgan, Barclays, BNP Paribas, and other banks may have lost some $400 million because of wrongdoing at K1 Group, a German hedge fund firm.
Bloomberg: European and U.S. authorities are examining whether K1, which manages funds of hedge funds, deceived the banks when borrowing money to ratchet up the size of its investments, according to the people, who declined to be identified because the investigation isn’t public. German and U.S. prosecutors may announce the first charges in the case as soon as this week, they said. JPMorgan inherited its exposure to K1 after acquiring Bear Stearns Cos., which did business with the fund manager.
K1 claims 700% net profit since 1996 on its website.
Here’s how they performed overtime (via Alphaville). Steady, eh?
Read the full thing here.
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