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JPMorgan losses lead to scrutiny from regulators, possible accounting changes

The SEC has asked for changes in accounting standards to prevent another fiasc

Fallout from the $2 billion JPMorgan Chase fiasco continues this week as financial regulators - both at home and abroad - call for changes in accounting standards to prevent similar debacles.

The Securities and Exchange Commission recently contacted the Financial Accounting Standards Board regarding potential changes to the rules regarding accounting for derivatives contracts used as hedging instruments, according to OnWallStreet.com. In a letter to the FASB obtained by the news source, SEC chief accountant James Kroeker requested "that the FASB consider the accounting for a change in counterparties when a derivative contract is designated as a hedging instrument in a hedge relationship as a part of their existing project on financial instruments."

Regulators in the United Kingdom have picked up the JPMorgan case, as well, according to the New York Post. Officials from the company's London office, which was responsible for the losses, have been discussing the steps they are taking to prevent future losses with representatives from the U.K. Financial Services Authority.

Despite the pressure from both sides of the Atlantic, CEO Jamie Dimon remains optimistic about his company, the Post reported. Dimon told employees the company is "very strong," and has repeatedly claimed the investment losses did not involve customer money.

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