JPMorgan Chase has said that the U.S. Department of Justice is conducting at least eight separate investigations into the bank’s activities, ranging from recruitment in Asia to its relationship with Ponzi scheme operator Bernard Madoff.
Bloomberg reports that the bank disclosed for the first time in a filing yesterday that the Justice Department is examining its energy-trading practices, which were subject to a $410m civil settlement with the Federal Energy Regulatory Commission in July. Investigations are also focusing on mortgage-bond sales, interest-rate rigging, the credit-derivatives market, and the bank’s trading loss last year, according to the filing.
U.S. Attorney General Eric Holder has said that it’s a priority for his department and for President Barack Obama to hold banks accountable. Chief Executive Officer Jamie Dimon visited Holder in September to try to negotiate a settlement of mortgage-related cases against the bank.
'The scope and breadth of risky practices at JPMorgan are mind-boggling', said Mark Williams, a former Federal Reserve bank examiner who teaches risk management at Boston University. 'Some of these probes are criminal, they’re not even just civil anymore, and I think it’s very telling about the broad risk-taking culture that was allowed under Jamie Dimon'.
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