Government regulators have begun their investigation of J.P. Morgan [profile], now hot in the media for allegations that the firm pushed sales of its own mutual funds, even when they were not optimal for investors, the New York Times reports.

Regulators including the SEC, Finra, the Manhattan District Attorney and officials in New Jersey and Delaware are inquiring into the practices of Chase Wealth Management division, write Susanne Craig and Jessica Silver-Greenberg in a followup to their high-profile J.P. Morgan exposé last week. The SEC and New Jersey's Office of the Attorney General have already scheduled interviews related to the case, anonymous sources told the reporters.

J.P. Morgan declined to comment to the Times on regulatory matters, but spokeswoman Melissa Shuffield said the bank "doesn’t pressure brokers to sell its funds over any other product" and that it "always place[s] our clients’ interests first in every decision."

Inquiries are still at an early stage. No individuals have been accused of any wrongdoing. 

Edited by: Irene Park


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