CFTC Probing JPMorgan Emails: WSJ

The U.S. Commodity Futures Trading Commission has issued subpoenas to JPMorgan Chase & Co. to determine whether fraud was committed in connection with the bank's multibillion-dollar proprietary-trading fiasco, the Wall Street Journal reported Friday.

Investigators in the CFTC's enforcement division are requesting emails and other internal communiciations to determine what traders told risk managers at the bank, according to the newspaper.

The article noted the subpoena power being used by the CFTC was granted only last year, as part of the implementation of the Dodd-Frank financial-overhaul law. It is believed this case marks the first time the agency has wielded this subpoena power.

Last month, JPMorgan Chase shocked the financial markets by announcing a derivatives-trading strategy gone wrong would result in losses of at least $2 billion in the second quarter.