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JPMorgan Chase Under Investigation Over Employee Who Allegedly Obstructed Italian Regulators

JPMorgan Chase Under Investigation Over Employee Who Allegedly Obstructed Italian Regulators

* U.S. bank probed over alleged crime by employee-document

* JP Morgan says acted correctly, will defend itself

* Allegation relates to Monte Paschi’s Antonveneta purchase

* Prosecutors allege JP Morgan employee obstructed regulator

By Silvia Ognibene and Silvia Aloisi

SIENA/MILAN, July 31 (Reuters) – Italian prosecutors probing Monte dei Paschi’s 2007 acquisition of a smaller rival are investigating U.S. investment bank JP Morgan over an alleged crime committed by one of its employees, according to a prosecutors’ document.

The document, seen by Reuters, said the alleged crime was the obstruction of Italian regulators by an unknown JP Morgan employee relating to a 1 billion euro ($1.3 billion) hybrid financial instrument used to partly fund Monte dei Paschi’s purchase of Antonveneta.

JP Morgan denied any wrongdoing and said it would defend itself vigorously. “We believe that JP Morgan and its employees acted correctly at all times,” it said in an emailed statement.

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