Something Stuck to Jamie Dimon's Other Shoe?
Jamie Dimon has spent the past few months trying to scrape off news of a big trading loss, estimated to be $9 billion. But now he's stepped in something else -– a judge wants to know why JPMorgan (JPM) won’t turn over 25 internal emails related to an investigation into electricity markets.
The Federal Energy Regulatory Commission is investigating the bank’s power trading and whether it manipulated electricity markets in California and the Midwest. Ironically, in April FERC announced “notices of alleged violations” by a unit of Barclays (BCS) Bank, now embroiled in a Libor-related scandal, as well as Deutsche Bank (DB).
If this investigation ends with a fine, it's unlikely to come close to the amount the bank has lost trading. But it could shoot holes in the idea – promoted by the Washington Post -- that the bank’s most recent trading nonsense only affects the bank and not the public.