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View Diary: Overnight News Digest 05/03/2013 (31 comments)

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  •  Rains it pours JPM Pulling Enrons? (8+ / 0-)

    JPMorgan Runs Afoul of Energy Authorities

    JPMORGAN RUNS AFOUL OF ENERGY AUTHORITIES  |  Government investigators contend that JPMorgan Chase devised “manipulative schemes” that turned “money-losing power plants into powerful profit centers,” and that a senior executive of the bank gave “false and misleading statements” under oath — findings that appear in a confidential government document that was sent to the bank in March, Jessica Silver-Greenberg and Ben Protess report in DealBook. The document warned of a potential crackdown by the Federal Energy Regulatory Commission, the regulator of the nation’s energy markets.

    In addition, the bank faces showdowns with other agencies, like the Office of the Comptroller of the Currency, which is considering new enforcement actions against JPMorgan over how it collected credit card debt and its possible failure to alert authorities to suspicions about Bernard L. Madoff, people who were not authorized to discuss the cases publicly said. “In a meeting last month at the bank’s Park Avenue headquarters, the comptroller’s office delivered an unusually stark message to Jamie Dimon, the chief executive and chairman: the nation’s biggest bank was quickly losing credibility in Washington. The bank’s top lawyers, including Stephen M. Cutler, the general counsel, have also cautioned executives about the bank’s regulatory problems, employees say,” according to DealBook. “For executives, the bank’s transition from model citizen to problem child in the eyes of the government has been jarring.”

    In the energy market investigation, a 70-page document took aim at Blythe Masters, a top executive who is known on Wall Street for helping expand the boundaries of finance. The document cites her supposed “knowledge and approval of schemes” carried out by energy traders in Houston. The investigators claimed she had “falsely” denied under oath her awareness of the problems. “We intend to vigorously defend the firm and the employees in this matter,” said Kristin Lemkau, a spokeswoman for the bank. “We strongly dispute that Blythe Masters or any employee lied or acted inappropriately in this matter.”

    I want 1 less Tiny Coffin, Why Don't You? Support The President's Gun Violence Plan.

    by JML9999 on Fri May 03, 2013 at 09:41:31 PM PDT

    [ Parent ]

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