JPMorgan Chase & Co.'s trading loss of more than $2 billionpoints to failures in the bank's risk management practices, U.S.regulators will tell lawmakers today.

Thomas J. Curry, the Comptroller of the Currency, said thelosses raise “questions about the adequacy and rigor” of the bank'srisk operation. Curry said his agency, JPMorgan's primaryregulator, is in the midst of a broad review of the bank'smanagement systems in the wake of the May 10 disclosure of thelosses from its chief investment office.

“Since that time, the OCC has been meeting daily with bankmanagement with respect to the bank's response to this situation,to re-evaluate the risk-management activities and controls of thebank and how they applied to its CIO function, and to determinewhat additional action is necessary,” Curry said in hisstatement.

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