Tuesday, May 29, 2012

Another Boo-boo: JP Morgan targeted in Japan insider trading probe




Oops! According to the Wall St Journal: JP Morgan Chase faces a new regulatory headache, as Japan's securities watchdog is probing the company for possibly leaking insider information, according to a person familiar with the matter.

JP Morgan was a lead underwriter for Nippon Sheet Glass in 2010 when the Japanese glass maker issued new shares, and the company's stock dropped sharply in the days leading up the announcement.

Japan's Securities and Exchange Surveillance Commission (SESC) announced Tuesday that it was seeking to fine a Japanese asset-management company for short-selling the shares based on information obtained illegally from an underwriter in advance of the offering.

The SESC did not name the underwriter under suspicion. ButJP Morgan was one of just two underwriters, and the other, Daiwa Capital Market, issued a public statement saying it had no involvement in the case.

Read more: http://www.nypost.com/p/news/business/jp_morgan_targeted_in_japan_insider_HEuX5eeZMTDo4sJugm9RIM

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