Schapiro: SEC Looking at JPMorgan's Financial Reporting

The U.S. Securities and Exchange Commission will look into the "appropriateness and completeness" of JPMorgan Chase & Co's (NYSE:JPM) financial reporting, SEC Chairman Mary Schapiro told the Senate Banking Committee on Tuesday.

Earlier this month, JPMorgan said it had lost at least $2 billion - a figure that's expected to grow - on trades tied to credit derivatives.

Schapiro said her agency's probe will focus on the accuracy of the company's first-quarter financial and earnings statements.

The SEC did not have direct oversight of the trades because they took place outside of the regulated brokerage, she said.

Had the final rules required by the 2010 Dodd-Frank financial oversight law been in place, the SEC would have had a better idea of the trades that l e d to the losses at JPMorgan, Schapiro said.

"Under the SEC's proposed rules, we would have known the trading desk and the trader who put the positions on, and the dealer would have been registered," she told the committee.