Reuters: Regulatory News: CFTC subpoenas JP Morgan over trading loss - WSJ

Reuters: Regulatory News Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

CFTC subpoenas JP Morgan over trading loss - WSJ Jun 1st 2012, 02:54 Thu May 31, 2012 10:54pm EDT May 31 (Reuters) - The enforcement division of the Commodity Futures Trading Commission (CFTC) is issuing subpoenas requesting emails and other internal JP Morgan documents in connection with the bank's multi-billion dollar trading loss, the Wall Street Journal said, citing people close to the investigation. The probe centers around what JP Morgan traders had told their supervisors and internal risk management staff as their wrong-way bets started to sour, the people told the Journal. If investigators find that employees made deceptive statements to superiors, that could constitute fraud under their authority to police the swaps market, the paper said. The CFTC inquiry is at a relatively early stage and is not confined to what the traders said, the WSJ reported. It would not necessarily lead to any civil enforcement action against the bank or individuals. A spokesman for JP Morgan declined to comment to the paper. The bank could not immediately be reached for comment by Reuters outside regular U.S. business hours. Gary Gensler, the head of CFTC, confirmed last week that the regulator is investigating JP Morgan's recent losses that may exceed $2 billion on trades tied to credit derivatives. The CFTC's probe will supplement investigations by the FBI and the Securities and Exchange Commission (SEC) into the losses at the largest U.S. bank.

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions