JPMorgan faces Dept of Justice probe on energy trades: WSJ

Mon Aug 19, 2013 6:01pm EDT

The entrance to JPMorgan Chase's international headquarters on Park Avenue is seen in New York October 2, 2012. REUTERS/Shannon Stapleton

The entrance to JPMorgan Chase's international headquarters on Park Avenue is seen in New York October 2, 2012.

Credit: Reuters/Shannon Stapleton

(Reuters) - JPMorgan Chase & Co (JPM.N) is being investigated by the U.S. Department of Justice for possible manipulation of energy markets following the company's settlement of civil allegations last month with a separate federal energy agency, the Wall Street Journal reported on Monday, citing people familiar with the case.

The probe, which was said to be in early stages, is being handled by U.S. Attorney Preet Bharara in Manhattan, the newspaper said on its website. Bharara recently brought criminal charges against two former JPMorgan traders for understating losses from the bank's disastrous London Whale derivatives trades last year.

The Justice Department began the probe of JPMorgan's energy trades as the company agreed to pay $410 million to end an enforcement action by the Federal Energy Regulatory Commission, according to the report, which said the new probe is to include some of the same issues. It is not known if the investigation is civil or criminal, the newspaper said.

A JPMorgan spokesman declined to comment on the report. A Justice Department spokeswoman in Washington had no immediate comment.

Chief Executive Officer Jamie Dimon has publicly vowed to resolve the company's regulatory issues.

(Reporting by David Henry in New York; Editing by Carol Bishopric)

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