JPMorgan (JPM) is facing an investigation from the US Treasury Department over its relation with hedge fund Ocean Leonid Investments which is said to have ties with Iranian oil trader Hossein Shamkhani, Bloomberg reported Friday, citing sources familiar with the probe.
The regulator is examining whether the lender met all requirements when it signed Ocean Leonid as a client, the report said, citing the people.
The New York-based bank has no obligation to exit the client relationship as Ocean Leonid and Shamkhani do not appear on any sanctions lists, the sources said, adding that the Treasury Department is mainly looking into Shamkhani's activities.
The US Federal Reserve is also examining Western financial exposure to the network of the Iranian oil trader, according to the sources.
JPMorgan, the US Treasury Department, the Federal Reserve, and Ocean Leonid did not immediately respond to MT Newswires' requests for comment.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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