At the end of every e-mail you get from Wall Street investment advisers and brokers is the phrase "Past performance is not necessarily indicative of future results." Would that anyone read the small print. JPMorgan Chase came through the financial crisis relatively unscathed only to stomp on a land mine in the form of a bungled series of risky derivatives trades. The derivatives positions were designed to hedge the firm's portfolio against slower economic growth, but they proved too complex to manage, resulting in a $2 billion--and growing-loss for the bank. According to a number of reports, the U.S. Department of Justice has opened an inquiry into the trades. (DOJ won't officially confirm or deny, as per usual, until there's a public filing.) The FBI has begun a preliminary investigation into the deals, which are financially just a bruise for the bank, f P is still expected to post a $4 billion profit in the next quarter alone.
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