May 14, 2012 (Shareholders Foundation) -- An investigation on behalf of investors in NYSE:JPM shares was announced over possible breaches of fiduciary duties in connection with potential wrongdoing by certain directors and officers at JPMorgan Chase & Co. in connection with certain financial statements.

The investigation by a law firm focuses on possible shareholder claims based on potential breaches of fiduciary duties. Specifically, the investigation concerns whether certain directors and officers at JPMorgan Chase & Co. (NYSE:JPM) breached their fiduciary duties.

JPMorgan Chase & Co. reported that its Net Income rose from $3.69billion in 2008 to $18.97billion in 2011. Shares of JPMorgan Chase & Co. (NYSE:JPM) increased from as low as $15.93 in March 2009 to as high as $45.98 per share on March 30, 2012.

Then on May 10, 2012 JP Morgan Chase & Co said in a filing with the U.S. Securities and Exchange Commission (SEC) that JP Morgans Chief Investment Office has had significant market-to-market-losses in its synthetic credit portfolio, and this portfolio has proven to be riskier, more volatile and less effective as an economic hedge than the firm previously believed. The Company estimated that its Corporate unit could post an $800 million loss in the second quarter.
During a conference call held after the market closed, on May 10, 2012, JP Morgan Chase & Co. CEO revealed that the Company lost about $2 billion on synthetic credit securities after egregious mistakes in its Chief Investment Office.

On Friday The New York Times reported that the U.S. and British banking regulator learned of the trading loss last month and have been in discussions with JPMorgan Chase about it. The Wall Street Journal said in an article on Friday that the losses stemmed from wagers gone wrong in the bank's Chief Investment Office that left JP Morgans CEO with a rare black eye following a long run as what some called the 'King of Wall Street.'
Also on Friday, Standard & Poor's Ratings Services revised its outlook on JPMorgan Chase & Co to negative from stable and Fitch Ratings downgraded JPMorgan Chase & Co.'s Long-term Issuer Default Rating, its Short-term Issuer Default Rating, and its viability rating placed it on Rating Watch Negative.

Shares of JPMorgan Chase & Co. (NYSE:JPM) fell from $40.74 per share on May 10, 2012 to $36.84 per share on May 11, 2012.