Steinhoff scandal hits US bank JP Morgan Chase

People pass the JP Morgan Chase & Co. Corporate headquarters in the Manhattan borough of New York City, May 20, 2015. Photo: Reuters/Mike Segar

NEW YORK - United States bank JP Morgan Chase says its equities business has taken a hit in the last quarter.

JP Morgan Chase marked down a R1.7-billion market loss, on a margin loan involving a single customer in its stock-trading unit, the bank said without naming their client, Steinhoff.

A corruption scandal has seen the business in a downward spiral and the implications appear far-reaching.

READ: Steinhoff's troubles continue

Steinhoff announced in December that it had uncovered accounting irregularities.

German and local investigations are looking into the company’s alleged corrupt activities.

The disclosure prompted a plunge in Steinhoff’s share price in both Frankfurt and Johannesburg as well as the resignation of its chief executive officer Markus Jooste and chairperson Christo Wiese.

The company has also been summoned to Parliament at the end of the month.
 

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