JPMorgan Chase Energy Trades Under Investigation By DOJ: Report

A JPMorgan sign is seen outside the office tower housing the financial services firm's Los Angeles, California offices, Augus
A JPMorgan sign is seen outside the office tower housing the financial services firm's Los Angeles, California offices, August 8, 2013. US banking giant JPMorgan Chase said August 8, 2013 it is facing parallel civil and criminal investigations over its sale of mortgage-backed securities before the financial crisis. JPMorgan disclosed in a securities filing that in May it was notified by the civil division of the US Attorneys Office for the Eastern District of California stating that it had preliminarily concluded that the bank 'violated certain federal securities laws' in connection with the subprime mortgage-backed securities. AFP PHOTO / Robyn Beck (Photo credit should read ROBYN BECK/AFP/Getty Images)

The Wall Street Journal reports that JPMorgan Chase, the country's largest bank by assets, is under investigation yet again, this time by the Department of Justice over its energy trades.

At a minimum, it's the seventh ongoing investigation into the bank, according to the Journal.

Reuters reports:

(Reuters) - JPMorgan Chase & Co is being investigated by the U.S. Department of Justice for possible manipulation of energy markets following the company's settlement of civil allegations last month with a separate federal energy agency, the Wall Street Journal reported on Monday, citing people familiar with the case.

The probe, which was said to be in early stages, is being handled by U.S. Attorney Preet Bharara in Manhattan, the newspaper said on its website. Bharara recently brought criminal charges against two former JPMorgan traders for understating losses from the bank's disastrous London Whale derivatives trades last year.

The Justice Department began the probe of JPMorgan's energy trades as the company agreed to pay $410 million to end an enforcement action by the Federal Energy Regulatory Commission, according to the report, which said the new probe is to include some of the same issues. It is not known if the investigation is civil or criminal, the newspaper said.

A JPMorgan spokesman declined to comment on the report. A Justice Department spokeswoman in Washington had no immediate comment.

Chief Executive Officer Jamie Dimon has publicly vowed to resolve the company's regulatory issues.



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