FBI investigates JPMorgan over energy trade

The FBI is scrutinizing JPMorgan in a probe of the bank's energy trades.

The Federal Bureau of Investigation is investigating individuals at JPMorgan Chase.

According to Bloomberg News, the FBI and Department of Justice (DoJ) are probing the bank's energy trades alongside an inquiry into its actions leading up to the 2008 financial crisis.

In total, the bank is facing seven ongoing investigations.

The fresh wave of alleged criminal activity centers around JPMorgan's energy-trading practices and whether individuals within the company acted inappropriately relating to the bank's $410 million civil settlement last month with the Federal Energy Regulatory Commission (FERC).

The FERC accused JPMorgan of manipulating energy markets in California and the Midwest. The agency said the bank engaged in bidding strategies that resulted in millions of dollars of losses by grid operators. While FERC did not take the matter further, this does not stop the FBI from pursuing the claims.

Earlier this month, the U.S. Attorney's Office opened a separate investigation into JPMorgan's mortgage bond practices.

Via: Bloomberg News

Image credit: ZDNet

This post was originally published on Smartplanet.com