Tuesday, May 14, 2013

JP Morgan, Again?

Once again, JP Morgan Chase finds itself at the center of controversy.  Casual Wall Street observers must be asking themselves, "will these bankers never learn"?  This time government regulators are accusing the investment banking giant of illegally manipulating energy prices in order to drive up revenue for themselves and investors.  Regulators cite to a document indicating knowledge and approval of bank executives of schemes carried out by a group of energy traders in Houston. According to DealBook:

"Government investigators have found that JPMorgan Chase devised 'manipulative schemes' that transformed 'money-losing power plants into powerful profit centers,' and that one of its most senior executives gave 'false and misleading statements' under oath.

The findings appear in a confidential government document, reviewed by The New York Times, that was sent to the bank in March, warning of a potential crackdown by the regulator of the nation’s energy markets."

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