JPMorgan Chase Faces Regulatory Action Over Energy Trading

05/08/2013 05:57 pm ET | Updated Jul 08, 2013
AP

May 8 (Reuters) - JPMorgan Chase & Co and some of its personnel face a possible enforcement action by the Federal Energy Regulatory Commission over bidding practices in certain markets, the company said on Wednesday.

In March, FERC staff notified JP Morgan that it intends to recommend the action by commission, the company disclosed in a quarterly filing with the U.S. Securities and Exchange Commission.

Last week, the New York Times cited a confidential document from FERC when it reported U.S. government investigators had found evidence that a JPMorgan unit manipulated trading in the California and Michigan electricity markets.

The company has said it will it "vigorously defend" itself and its employees in the matter.

Federal regulators often notify targets of investigations give them a chance to show why enforcement actions should not be brought.

JPMorgan also said that upcoming actions by regulators could include orders concerning consumer collections and sales of identity-theft protection products.

The quarterly filing also showed that the company slightly trimmed its estimate of possible legal liabilities in excess of reserves to $6 billion at the end of March from $6.1 billion three months earlier.

JPMorgan Chase Lawsuits And Regulatory Probes