| The alleged practice, known as "netting," is prohibited under Fed rules and international standards, and would have allowed JPMorgan Chase to issue between $75 billion and $100 billion in extra loans, the whistleblower calculated, potentially generating $2 billion in net income a year.
Banks that pose more risk are required to hold larger capital reserves to absorb financial losses. A JPMorgan Chase spokesperson said in a statement that the bank fully complies with all capital regulations, and that its methodology "is fully transparent to our regulators."
Sen. Elizabeth Warren, the top Democrat on the Senate Banking Committee, said she was deeply concerned that the Fed "may be turning a blind eye as JPMorgan and other Wall Street banks cook their books and skim off of funds meant to prevent a global economic collapse."
"Inconsistent and lax bank supervision has crashed our economy before," she said. Read more here.
ELITE GOLF CLUB'S SECRET SHAREHOLDERS
Top U.K. political donors and a Scottish football star were among more than 500 secret shareholders of an offshore firm behind an exclusive golf club in Scotland identified by investigative journalism outlet The Ferret in leaked Paradise Papers documents. The identities of the club's shareholders were not previously known as it's owned by a firm incorporated in the Cayman Islands, a well-known secrecy jurisdiction.
US ANTI-CORRUPTION LAW IN LIMBO
A U.S. Supreme Court ruling created confusion last week, with transparency advocates briefly cheering the apparent reinstatement of the Corporate Transparency Act, a landmark 2021 law mandating the establishment of a national database of company owners. But the law, which has been plagued by repeated legal and political challenges, remains stalled due to an injunction by a Texas federal judge. Thanks for reading! Joanna Robin
ICIJ's digital editor
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