Financial investigators in the United States have
accused the country's biggest bank, JPMorgan Chase & Co., of a range
of potentially fraudulent acts, including using manipulation to
increase profits in the energy market, two US newspapers reported
Friday.
The New York Times, citing a confidential government document,
said investigators accused the Wall Street institution of using
"manipulative schemes" to turn "money-losing power plants into
powerful profit centers."
The document sent to the bank in March warned that federal
regulators might get involved in the energy market as a result of the
alleged manipulation, the Times said.
The US Office of the Comptroller of the Currency, among seven
other regulators, is also investigating JPMorgan for inaccuracies in
its accounts on credit card customers and whether the bank failed to
report suspicious transactions by convicted billion-dollar fraudster
Bernard Madoff, the Times as well as The Wall Street Journal
reported.
JPMorgan Chase has been under investigation for months for
questionable business practices and has seen its reputation as one of
the best-managed banks in the world tarnished.
The news reports cited financial authorities accusing manager
Blythe Masters and other JPMorgan executives of making "false and
misleading statements" under oath.
Masters is considered the creator of credit default swaps, with
which investors can insure themselves against defaulting loans. The
failure of these financial instruments contributed to the 2008
financial crisis.
JPMorgan Chase itself vehemently denied the accusations, saying
that neither Masters nor any other employee had lied or committed any
acts of fraud, the Times said, citing a bank spokeswoman.
The bank has until mid-May to fully respond to regulators.
