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JPMorgan Execs Got A Little Testy With 'Stupid' Regulators

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If you'd like to have at least eight federal agencies—and the Justice Department—investigating your firm, consider this approach.

Tensions between JPMorgan and its primary regulator were highlighted in a recent Senate report that examined the $6.2 billion trading loss. The report, by the Senate Permanent Subcommittee on Investigations, portrayed a somewhat defiant stance by Mr. Dimon, showing how during a brief period in August 2011 the chief executive stopped providing regulators with profit-and-loss reports about the investment bank.

Although the bank says Mr. Dimon was merely concerned about a security breach, the report says he took an adversarial tone with regulators, pushing them to explain why they needed that level of information. Mr. Dimon’s approach seemed to influence other executives, including one employee who once screamed at examiners and called them “stupid.”

Those episodes, combined with the current investigations, are costing the bank some of its influence in Washington, according to government officials who would speak only anonymously. The legal problems also pose a test for Stephen M. Cutler, the bank’s general counsel, who is advocating for the bank to take a respectful approach with regulators.

JPMorgan Chase Faces Full-Court Press of Federal Investigations [DealBook]