AND NOW: DOJ Launches Probe Into JPMorgan's Energy Business
Now you may be thinking to yourself — another one? More? Yes, more. The government is going after JPMorgan like it never has before, and the House of Dimon was warned specifically about their energy business this Spring.
In May the New York Times reported that government officials were looking into JPMorgan's dealings in energy markets. By July, the bank was paying a $410 million fine to settle accusations from the Federal Energy Regulatory Commission.The bank neither admitted nor denied wrongdoing.
Somehow, though, that's not the end. In the New York Times' May report, regulators specifically mentioned looking into testimony by JPMorgan commodities head Blythe Masters. According to them, Masters denied knowing anything about alleged "schemes" carried out by JPMorgan energy traders in Houston.
When Masters wasn't mentioned in the FERC settlement, though, it wasn't that surprising. When was the last time a big wig at a Wall Street bank was really punished?
Now it seems that the drama at JPMorgan Ventures Energy Corporation isn't over, and that's the last thing the banks needs.