JohnQPublic
6th May 2013, 09:27 AM
JPMorgan's Blythe Masters might be charged
(http://www.fiercefinance.com/story/jpmorgans-blythe-masters-might-be-charged/2013-05-03)
By Jim Kim
The New York Times reports that Blythe Masters, one of the most respected JPMorgan executives and a groundbreaking figure in the derivatives industry, might be in the crosshairs of prosecutors.
The Federal Energy Regulatory Commission (FERC) has been investigating alleged energy markets abuse via various trading schemes by JPMorgan and other banks. In a confidential report, the agency says it will recommend an enforcement action against Masters to hold her individually accountable for alleged crimes.
"The regulatory document cites her supposed 'knowledge and approval of schemes' carried out by a group of energy traders in Houston. The agency's investigators claimed that Ms. Masters had 'falsely' denied under oath her awareness of the problems and said that JPMorgan had made 'scores of false and misleading statements and material omissions' to authorities, the document shows," according to the Times.
Regulators also believe she played a big role in what they call a systematic cover up to mask evidence of certain trades and a plan to obstruct investigations.
"It is unclear whether the agency will file an action against JPMorgan based on the investigators' findings. A majority of the five-member commission must first endorse the case. If the regulator does proceed, it could fine the bank and Ms. Masters."
The bank denies that Masters committed perjury or lied in any way.
This is more bad news for a bank that has been beset with regulatory woes, calling into question not only the judgment of top executives, but also the structure of the executive ranks. The fact that many executives have left the company compounds the problems. At the upcoming annual meeting, shareholders will vote on whether to split the chairman and CEO jobs, both held by embattled CEO Jamie Dimon.
NYTimes article: http://dealbook.nytimes.com/2013/05/02/jpmorgan-caught-in-swirl-of-regulatory-woes/
(http://www.fiercefinance.com/story/jpmorgans-blythe-masters-might-be-charged/2013-05-03)
By Jim Kim
The New York Times reports that Blythe Masters, one of the most respected JPMorgan executives and a groundbreaking figure in the derivatives industry, might be in the crosshairs of prosecutors.
The Federal Energy Regulatory Commission (FERC) has been investigating alleged energy markets abuse via various trading schemes by JPMorgan and other banks. In a confidential report, the agency says it will recommend an enforcement action against Masters to hold her individually accountable for alleged crimes.
"The regulatory document cites her supposed 'knowledge and approval of schemes' carried out by a group of energy traders in Houston. The agency's investigators claimed that Ms. Masters had 'falsely' denied under oath her awareness of the problems and said that JPMorgan had made 'scores of false and misleading statements and material omissions' to authorities, the document shows," according to the Times.
Regulators also believe she played a big role in what they call a systematic cover up to mask evidence of certain trades and a plan to obstruct investigations.
"It is unclear whether the agency will file an action against JPMorgan based on the investigators' findings. A majority of the five-member commission must first endorse the case. If the regulator does proceed, it could fine the bank and Ms. Masters."
The bank denies that Masters committed perjury or lied in any way.
This is more bad news for a bank that has been beset with regulatory woes, calling into question not only the judgment of top executives, but also the structure of the executive ranks. The fact that many executives have left the company compounds the problems. At the upcoming annual meeting, shareholders will vote on whether to split the chairman and CEO jobs, both held by embattled CEO Jamie Dimon.
NYTimes article: http://dealbook.nytimes.com/2013/05/02/jpmorgan-caught-in-swirl-of-regulatory-woes/