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Breaking News from CNBC's Kate Kelly: DOJ is in Advanced Stages of Criminal Probe into JPMorgan Whale Traders

When: Today, Friday, March 22nd

Where: CNBC's "Fast Money"

Following is the unofficial transcript of breaking news from CNBC's Kate Kelly. Here is link to the embeddable video: http://video.cnbc.com/gallery/?video=3000156493.

All references must be sourced to CNBC.

KATE KELLY: THANKS SO MUCH MELISSA. WE UNDERSTAND THAT THE U.S. DEPARTMENT OF JUSTICE IS IN THE ADVANCED STAGES OF A PROBE INTO THE SO CALLED LONDON WHALE TRADERS FORMERLY WORKING WITH JPMORGAN. THESE OF COURSE ARE THE FOLKS WHO WERE INVOLVED WITH THE SO CALLED LONDON WHALE DEBACLE LAST SUMMER THAT LED TO MORE THAN $6 BILLION IN LOSSES FOR JPMORGAN IN ITS CHIEF INVESTMENT OFFICE IN AN ATTEMPT ORIGINALLY TO SORT OF HEDGE EXPOSURE THAT THEY HAD AS A BANK THROUGH A SERIES OF COMPLEX CREDIT TRADES THAT WENT TERRIBLY AWRY. THE DOJ AS WE UNDERSTAND IT IS LOOKING DEEPLY AT QUESTIONS OF WHETHER CERTAIN TRADERS MISMARKED INTENTIONALLY AND ALSO ULTIMATELY HID LOSSES. ALL OF WHICH COULD BE THE BASES FOR A SECURITIES FRAUD CLAIM OF THE CRIMINAL NATURE AND THEY'VE BEEN INVESTIGATING FOR SOME TIME, JPMORGAN ACKNOWLEDGED IN A RECENT 10K FILING, THE DOJ AMONG OTHER INVESTIGATORS WERE LOOKING FOR DOCUMENTS AND OTHER INFORMATION IN ASSOCIATION WITH THE CREDIT LOSSES AT THE CIO THAT OCCURRED LAST YEAR SO WE KNEW THAT MUCH BUT THIS TAKES IT TO ANOTHER LEVEL TO NOTE THAT THERE ARE INDIVIDUALS WHO ARE BEING TARGETED HERE IN LONDON. FORMER JPMORGAN TRADERS WHO WERE INVOLVED WITH THESE LONDON WHALE LOSSES MELISSA. AND THAT THE DOJ HAS PROGRESSED AS WE UNDERSTAND IT QUITE A BIT IN TERMS OF THEIR INQUIRY INTO THIS. NOW WE CALLED THE DOJ FOR COMMENT THEY HAD NO IMMEDIATE COMMENT BUT WILL GET BACK TO YOU AS SOON AS WE HEAR MORE FROM THEM.

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