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Friday, October 21, 2016

JPMorgan Faces New Energy-Related Probe

NEW YORK CITY (AFP) – U.S. authorities are probing whether banking giant JPMorgan Chase manipulated U.S. energy markets, the Wall Street Journal reported.

The newspaper, citing unnamed sources, on Monday said the Justice Department recently decided to take a closer look at the bank’s energy practices as it was wrapping up a $410 million settlement linked to allegations it had manipulated power prices in California and the Midwest.

The Journal said it was unclear whether the investigation is civil or criminal and noted that its sources warned the probe was still in its early stages.

The newspaper quoted a JPMorgan spokesman as saying that “we’re working hard to remediate controls issues, strengthen business practices and address regulatory concerns.”

JPMorgan faces a series of legal woes. Just last week, the U.S. charged a pair of former traders with fraud in connection with the 2012 $6.2 billion “London whale” trading losses.

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