JPMorgan Chase was warned by U.S. energy-market authorities that they may take action against its employees as part of an inquiry into bidding practices, the New York Times said, citing a document it obtained.
Bloomberg reports that enforcement officials at the Federal Energy Regulatory Commission plan to recommend the agency hold traders and commodities-unit chief Blythe Masters 'individually liable', the newspaper reported, citing a 70-page document the agency sent the New York-based bank in March. Investigators said Masters falsely denied awareness of problems, the Times said.
The case focuses on eight 'schemes' adopted by traders in Houston between September 2010 and June 2011, according to the newspaper. The traders offered energy at prices 'calculated to falsely appear attractive', prompting state authorities in California and Michigan to make about $83m in 'excessive' payments to JPMorgan, the Times cited investigators as saying.
In the meantime, Bloomberg reports Warren Buffett, who has said he personally owns shares of JPMorgan Chase, is backing the bank’s Chairman and Chief Executive Officer Jamie Dimon as shareholders vote this month on whether to split his roles.
'I’m 100 percent for Jamie', Buffett told Bloomberg Television’s Betty Liu Thursday in Omaha, Nebraska. 'I couldn’t think of a better chairman'.