J.P. Morgan Under Investigation for Unsuitable Hedge Fund Recommendations
From the Desk of Jim Eccleston at Eccleston Law LLC:
J.P. Morgan currently is under investigation by the CFTC and the SEC for allegedly steering its private banking clients into its own hedge funds.
According to the investigation, J.P. Morgan directed a high proportion of its private-bank assets into Highbridge Capital Management LLC, an investment firm of J.P. Morgan, which helped stabilize the a hedge fund run by Highbridge during the financial crisis.
Regulators are investigating whether JP Morgan made proper disclosures.
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