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With The London Whale Dragging On, Should You Sell JPMorgan?

http://www.fool.com/investing/general/2013/02/11/with-the-london-whale-dragging-on-should-you-sell.aspx

John Grgurich
February 11, 2013

Last year, JPMorgan Chase (NYSE: JPM) CEO Jamie Dimon wasn't the only one biting his nails over the London Whale's outsize derivatives positions, massive bets that would eventually cost the bank more than $6 billion. A recent article in The Wall Street Journal reveals that Bruno Iksil, the London Whale himself, was also quite worried about how big his bets were getting.  

This latest bit of news is from yet another investigation into the affair. Almost one year on from the costly trading scandal, the botched trades continues to plague the superbank. How much longer can London Whale investigations and revelations go on? What other related mayhem exists that could potentially damage the bank? And maybe most importantly, what should you do with your shares?

The never-ending stories
The current investigation is being conducted by the Senate Permanent Subcommittee on Investigations. According to The Journal, as early as January of last year Iksil emailed a fellow trader, worrying that "the size of his bets was getting 'scary'". That email was sent months before Dimon made his now infamous "tempest in a teapot" remark , as he tried to downplay the then-nascent situation.

There's also some questions as to whether or not fellow JPMorgan traders leaked Iksil's derivatives positions to the market and then took positions against them. If there's any truth in it, that would be a particularly nasty revelation, and constitute a real black mark against the bank and its culture, which Dimon has worked so hard to shape and rightly prides himself on.

The primary purpose of the Senate investigation is to determine whether or not the bank properly informed the Office of the Comptroller of the Currency regarding what it knew about the London Whale. The Senate is also looking into whether the OCC pressed JPMorgan hard enough in return fo