Sunday, August 5, 2012

JP Morgan Falls on Possible MF Global Trustee Probe

James Giddens, the trustee liquidating the assets of MF Global said in a court filing this week that he may investigate JPMorgan Chase (JPM) for its ties to MF Global. The news, first reported by Bloomberg, sent JPM shares down sharply on Tuesday afternoon, and the stock closed down 2.3%.

JP Morgan was one of MF Global’s main banks, and MF Global may owe JPM money. But Giddens also apparently sees JP Morgan as a potential subject of the investigation.

“It is clear, however, that certain of its actions are likely to be the subject of investigation and the Trustee is free to act with the respect to them,” Giddens wrotein the filing.

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