J.P. Morgan Chase Eyed For Facilitating Late Trades
January 10, 2005
Regulators are reportedly turning their attention toward J.P. Morgan Chase for its role in facilitating improper trades by Canary Capital Partners, the hedge fund that touched off the mutual fund trading scandal. The Securities and Exchange Commission is questioning whether J.P. Morgan met its obligations to police its client's activities after extending up to $150 million in credit to the hedge fund. Officials from J.P. Morgan's legal defense team at Davis Polk & Wardwell noted in an internal memo that their client was oblivious to Canary's misconduct, but SEC officials are building a case stating ignorance is no defense.