JP Morgan (JPM) may be one of the few banks whose one-year stock chart doesn’t look like a downward ski slope, but that doesn’t mean they’re free from bad news.
How about a little embezzlement from high-net-worth clients? That’s what the indictment alleges. (Reuters):
A former JPMorgan Chase & Co private banking executive has been arrested in Argentina on charges of embezzling about $5.4 million from bank clients….
The indictment contends Arbizu, 41, engaged in a scheme to withdraw funds from bank customers without their knowledge through the use of unauthorised wire transfers. The U.S. government is also seeking the forfeiture of the roughly $5.4 million it contends was embezzled….
Arbizu had been responsible for handling business involving high-net-worth individuals in Argentina and Chile, the lawsuit said.
Luckily $5.4 million is chump change compared to the write-offs that have become the norm on Wall St, so if Arbizu has already spent his haul, JP Morgan won’t even miss it. Merrill’s $8 billion write-off for reference.
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