JP Morgan says acted correctly in Monte Paschi case

MILAN Wed Jul 31, 2013 9:18am EDT

People exit the lobby of JPMorgan Chase & Co. headquarters in New York May 22, 2012. REUTERS/Eduardo Munoz

People exit the lobby of JPMorgan Chase & Co. headquarters in New York May 22, 2012.

Credit: Reuters/Eduardo Munoz

MILAN (Reuters) - U.S. investment bank J.P. Morgan (JPM.N), which is being investigated by Italian prosecutors probing Monte dei Paschi's purchase of a smaller rival, said on Wednesday it and its employees acted correctly at all times.

In an e-mailed statement, J.P. Morgan said it had never benefited from an indemnity agreement with Monte dei Paschi that prosecutors allege protected the U.S. investment bank from potential losses linked to a hybrid instrument used to partly fund the 2007 acquisition.

"No claim was ever made under this indemnity (which only existed for a matter of days) either for the benefit of J.P. Morgan or any of its employees," JP Morgan said.

"We believe that J.P. Morgan and its employees acted correctly at all times. We will defend this action vigorously," it said.

(Reporting by Silvia Aloisi, editing by Jennifer Clark)