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The
CFTC probe includes Highbridge Capital Management LLC, an
investment firm owned by J.P. Morgan, the Journal said. (http://on.wsj.com/1UAmHJK)
CFTC is investigating why large proportions of Highbridge's
assets are coming from J.P. Morgan's private-bank assets and if
this factor helped Highbridge stabilize during the financial
crisis, the Wall Street Journal said, citing people familiar
with the probe.
Representatives at JPMorgan, Highbridge Capital and CFTC were
not immediately available for comment outside regular business
hours.
Private-bank client assets had grown to 71 percent of
Highbridge's flagship fund at the end of 2012, up from 26
percent in 2007, the Journal said, citing a person briefed on
the CFTC findings.
JPMorgan was in advanced talks with the U.S. Securities and
Exchange Commission to pay more than $150 million to resolve
allegations that it steered private-banking clients to its own
products without proper disclosures, the paper reported in
August.
JPMorgan has also been in talks to possibly sell a part of
Highbridge to its management team, the Journal said.
(Reporting by Sangameswaran.S; Editing by Gopakumar Warrier)
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