The U.S. Department of Justice is investigating whether JPMorgan Chase & Co. violated securities laws by providing “a proprietary product” that allowed it to manipulate the price of derivatives and to avoid paying taxes on the profits it made.
Justice Department said in a news release that JPMorgan Chase used the proprietary products in a scheme that made it “more profitable to commit fraudulent activity than to comply with U.K. and U.A.E. laws.”
A U.N. panel on Monday called on the U. S. to provide information about the company’s financials, including the identity of its executives and its role in the scheme.
“These companies have a duty to the public to protect the integrity of their markets,” said U. N. Comptroller General António Guterres, who said JPMorgan Chase “has a responsibility to its shareholders, regulators and the public.”
According to the U, the Justice Department investigation is focusing on whether JPMorgan acted as an “executive agent” of the company or “agent of the bank.”
The probe, which is being conducted by the U Justice Department’s Asset Forfeiture Unit, focuses on whether the bank’s executives and traders knowingly used the products to manipulate financial markets.
Justice department said the Justice department would ask JPMorgan Chase’s top executives and other senior executives to provide documents related to the transactions.
“We are investigating JPMorgan Chase for its illegal conduct in connection with the manipulation of financial markets,” U. of S. Attorney General Eric Holder said in the statement.
“The investigation is focused on the financial activities of the CEO of JPMorgan Chase, Jamie Dimon, as well as other executives and senior executives.”
The Justice Department also said it would request information about how JPMorgan Chase has implemented its own rules and procedures to prevent similar behavior in the future.
“This inquiry will continue until such time as JPMorgan Chase provides documents to the Department of Treasury or other government agencies that will demonstrate that its policies and procedures for protecting its customers are consistent with the U-S.
government’s policy against abusive behavior,” Holder said. Read More