JPM and Blythe Masters in legal trouble for Enron style scandal?

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More on the story from the NYT:
...
In the energy market investigation, the enforcement staff of the Federal Energy Regulatory Commission, or FERC, intends to recommend that the agency pursue an action against JPMorgan over its trading in California and Michigan electric markets.

The 70-page document also took aim at a top bank executive, Blythe Masters. A seminal Wall Street figure, Ms. Masters is known for helping expand the boundaries of finance, including the development of credit default swaps, a derivative that played a role in the financial crisis.

The regulatory document cites her supposed “knowledge and approval of schemes” carried out by a group of energy traders in Houston. The agency’s investigators claimed that Ms. Masters had “falsely” denied under oath her awareness of the problems and said that JPMorgan had made “scores of false and misleading statements and material omissions” to authorities, the document shows.

It is unclear whether the agency will file an action against JPMorgan based on the investigators’ findings. A majority of the five-member commission must first endorse the case. If the regulator does proceed, it could fine the bank and Ms. Masters.

“We intend to vigorously defend the firm and the employees in this matter,” said Kristin Lemkau, a spokeswoman for the bank. “We strongly dispute that Blythe Masters or any employee lied or acted inappropriately in this matter.”

JPMorgan has until at least mid-May to respond to the accusations in the document.
...

http://dealbook.nytimes.com/2013/05/02/jpmorgan-caught-in-swirl-of-regulatory-woes/
 
FERC must not be "on the same page" with the guys who say any SIFI is "too big to jail". It'd only be the pleasure of a moment to see Blythe get tossed under the bus, but if anyone thinks JPM is going down like Enron - I've got some worthless high priced stuff to sell you.
 
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It is as simple as Jon Corzine. There is no justice until if/when Corzine is put on trial.

BTW, what ever happened to MG Global's customers' gold anyway?

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Blythe might just be a sacrificial wolf. I agree with DCFusor that nothing happens to JPM. "SIFI/TBTF"
 
Guys, didn't you read the important sentence in the NYT article? BM & JPM might have to ... pay a fine! :eek:
 
So.....it looks like they've found their sacrificial lamb. She will be given the obligatory perp-walk, she'll be assigned some high octane scumbag lawyer to help drag this thing through the puddles that are "reasonable doubt, and thirty or forty lesser banksters will be thrown to the wolves in the process. You don't get to her stature in this industry without knowing where the landmines are and where a few bodies are buried.

Anyhow, she'll cut a deal that has her in a minimum security white collar spa like Danbury, with the promise of a low profile move to some island or another when she gets out. she will write a blockbuster book and make millions on book tours.

Meanwhile, the poor bastards she throws under the bus will get their nuts crunched and get sent to some hellhole like Angola Prison.
I have no illusion that justice will ever be served up to a banker........none whatsoever.
 
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