Chase's Enron Trades Under Review

The Federal Reserve of New York is believed to be reviewing trades that Chase made with Enron after the US bank (now JP Morgan Chase) set up an off-shore entity, Mahonia Ltd, a decade ago, which subsequently undertook substantial business with the now bankrupt corporation.

Although there is no indication that JP Morgan will be subject to a formal investigation, the fact that the Fed has taken steps to undertake the review is considered to be another indication that the regulatory authorities are determined to pursue every lead in an effort to establish whether third parties contributed to the demise of the former energy giant.