JPMorgan Chase & Co. Probed Over Possible Power Market Manipulation-Reuters

Reuters reported that U.S. energy regulators have subpoenaed JPMorgan Chase & Co. to produce 25 internal emails as part of an investigation into whether the bank manipulated electricity markets in California and the Midwest. The Federal Energy Regulatory Commission (FERC), which has recently stepped up its efforts to end manipulation of U.S. power markets, filed a petition in federal court on Monday to require the bank to produce emails from 2010 and 2011 as part of a formal investigation into the bank's power trading. FERC does not normally disclose investigations, but it chose to subpoena JPMorgan after the bank claimed emails - some between commodities chief Blythe Masters and head of principal commodity investments Francis Dunleavy - were protected by attorney-client privilege, which the regulator disputes. "The investigation focuses on JPMorgan bidding practices that may have been designed to manipulate the California and Midwest electricity markets," FERC lawyers said in the subpoena. FERC said it is also looking at whether the bank has tried to stall the investigation by not engaging in truthful communications with the commission. The inquiry follows complaints from grid operators in California and the Midwest in 2011 that JPMorgan's traders may have bid up electricity prices by more than $73 million. FERC has not yet found if there was any wrongdoing.