JPMOrgan refuses handing over of emails in energy manipulation case

by Darcie | Monday, Jul 16, 2012 | 512 views

JPMorgan Chase & Co in its statement has re-asserted the fact that attorney-client privilges stop it from handing over the emails to the regulators in US probing into the case of a possible market manipulation  in the electricity markets. This was statement by the banking giant in a filing made by it in the US court.

The Federal Energy Regulatory Commission is investigating into the complaints that had been made by the grid operators that the traders at JPMorgan might have been involved in bidding up the prices of the electricity by as much as $73 million in the states of California and Midwest.

Two subpoenas were issued by the federal energy market regulator , one in April and the other in May, asking the bank for producing 25 emails or give a reason for why it couldn’t show them by 5pm on Friday.

The lawyers representing the bank have said that the FERC is still conducting the investigations and no facts can still be derived and there is no determination of the fact the Respondent was engaged in any kind of misconduct, at this stage.

FERC is likely to file a report on the same by Tuesday noon. The lead FERC investigator, Tom Olson declined to comment on the same.

JPMOrgan spokesperson that the bank had no comments besides the filing already made.

The probe comes as the investigators in US are also looking into the fact if traders at JPMorgan hid the trading losses of the bank that amount to a total of $5.8 billion.

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