NEW YORK -- JPMorgan Chase & Co. may have settled with federal energy regulators, but the FBI has opened its own investigation into the bank's role in California's electricity market.
The FBI has launched a criminal probe into allegations at the heart of a case settled between JPMorgan and the Federal Energy Regulatory Commission last month, according to a person briefed on the matter who was not authorized to speak publicly. It was not clear when the criminal probe began and how, or if, it may have progressed.
The FBI investigation intensifies the government's scrutiny of JPMorgan, the nation's biggest bank and long considered among the country's best managed and strongest financial institutions.
Federal prosecutors in Manhattan last week accused two former mid-level JPMorgan traders with cooking the books in last year's "London Whale" trading fiasco. The traders allegedly tried to hide losses related to risky derivatives bets that backfired, costing the bank more than $6 billion.