Wednesday, May 30, 2012

JPMorgan Securities Investigated In Japan SESC Probe

J.P. Morgan Chase & Co. faces a new regulatory headache, as Japan's securities watchdog is probing the company for possibly leaking insider information, a person familiar with the matter said.

J.P. Morgan was a lead underwriter for Nippon Sheet Glass Co. in 2010 when the 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 Tuesday announced it was seeking to fine an asset management company called Asuka Asset Management Ltd. for short-selling shares based on illegally obtained information in advance of the offering from an underwriter.

While Asuka gained Y60.5 million, or about $760,000, from the insider trading, the watchdog only recommended a fine of Y130,000, or about $1,600, because of the small amount of fees earned from its clients on the trades. Read more >>

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