Shareholder lawsuits add to fallout from JPMorgan loss

By Andrew Tangel

May 16, 2012 12 AM PT

And now for the litigation.

Two JPMorgan Chase & Co. shareholders have sued the bank over the $2-billion trading loss disclosed last week, the Wall Street Journal reported.

The suits, filed late Tuesday, claim executives misled investors about JPMorgan’s risky bets and potential exposure, according to the report.

The shareholder suits follow news of an FBI probe of JPMorgan’s loss in complicated derivative trading conducted by the bank’s Chief Investment Office.

JPMorgan has faced increased scrutiny by lawmakers and regulators since the disclosure last Thursday.

Investors initially punished the stock, sending it 12% lower over Friday and Monday. But the bank’s stock rose Tuesday and continued its climb Wednesday morning.

JPMorgan shares added 42 cents, or 1.2%, to $36.66 in early trading on Wall Street.

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