From The New York Times:

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.


In the energy market investigation, the enforcement staff of the Federal Energy Regulatory Commission, or FERC, intends to recommend that the agency pursue an action against JPMorgan over its trading in California and Michigan electric markets.


The government document says that the bank also “planned and executed a systematic cover-up” of its illegal activities. The senior executive most directly implicated is Blythe Masters, one of the original developers of the Credit Default Swap.

According to the NYT article, J.P. Morgan Chase is currently being investigated by a minimum of eight different Federal agencies.

Originally posted to Animal Nuz on Fri May 03, 2013 at 08:30 AM PDT.

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