CFTC subpoenas JPMorgan over trading loss: WSJ

Thu May 31, 2012 11:32pm EDT

A sign is seen outside the JPMorgan office in Los Angeles, California, October 12, 2010. REUTERS/Lucy Nicholson

A sign is seen outside the JPMorgan office in Los Angeles, California, October 12, 2010.

Credit: Reuters/Lucy Nicholson

(Reuters) - The enforcement division of the Commodity Futures Trading Commission (CFTC) is issuing subpoenas requesting emails and other internal JPMorgan (JPM.N) documents in connection with the bank's multi-billion dollar trading loss, the Wall Street Journal said, citing people close to the investigation.

The probe centers around what JPMorgan traders had told their supervisors and internal risk management staff as their wrong-way bets started to sour, the people told the Journal.

JPMorgan spokesman Joseph Evangelisti declined to comment to Reuters on the Journal report.

The CFTC inquiry is at a relatively early stage and is not confined to what the traders said, the WSJ reported.

It would not necessarily lead to any civil enforcement action against the bank or individuals.

Gary Gensler, the head of CFTC, confirmed last week that the regulator is investigating JP Morgan's recent losses that may exceed $2 billion on trades tied to credit derivatives.

The CFTC's probe will supplement investigations by the FBI and the Securities and Exchange Commission (SEC) into the losses at the largest U.S. bank.

(Reporting by Sakthi Prasad in Bangalore; Editing by Eric Meijer)

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