JPMorgan Chase & Co. (NYSE:JPM) is on the receiving end of investigations from the Federal Energy Regulatory Commission with regards to potential power-market manipulation. According to Bloomberg, this came to light through documents provided by the FERC.
Fillings from the FERC reveal that JPMorgan had allegedly withheld emails that the FERC deemed instrumental in the investigation. The Washington-based agency went on to ask the U.S district court of Columbia to order JPMorgan to submit the emails or provide reasons for withholding the needed information.
The investigations come at the wake of reports last year that demonstrated California and Midwest system operators’ dissatisfaction in bidding practices. According to estimates presented to FERC by the two operators, three of the disputed bidding techniques had resulted in improper payments not less than $73 million.
On top of the mysteriously missing trail of emails, FERC is also investigating JPMorgan on grounds of dutifully carrying out its obligation to communicate truthful and non-misleading information to regional energy market operators and the commission.
Jennifer Zuccarelli, a JPMorgan spokesperson, noted Tuesday in an email that the bank had complied with all ongoing investigations, citing that it operated within the realm of lawful operations and FERC rules.
JPMorgan actually has the right to output from various electricity generating facilities. It also went on to confirm that it had extended the necessary information. This was according to the company’s quarterly filing submitted in May with the Securities and Exchange Commission.
JPMorgan has had it rough over the past few months. This adds another twist to its swelling string of misfortunes.