CHICAGO Aug 6 JPMorgan Chase & Co on
Monday sought to limit the power the bankruptcy trustee for
Peregrine Financial Group has to subpoena information from
financial institutions that did business with the failed
JPMorgan said in a court filing that Trustee Ira
Bodenstein's request for authorization from a bankruptcy court
to serve subpoenas on financial information may be overly
burdensome by encompassing Peregrine's affiliates and wholly
owned subsidiaries, in addition to the brokerage itself.
JPMorgan reserved the right to "modify or quash" subpoenas
that are too burdensome or broad.
Bodenstein last week asked the court for the authority to
require 10 financial institutions, including JPMorgan, to
produce information about open and closed accounts maintained by
Peregrine, its affiliates and subsidiaries.
Peregrine, which maintained various accounts at JPMorgan,
filed for bankruptcy protection on July 10, one day after CEO
Russell Wasendorf Sr attempted suicide and left a note
describing how he had bilked customers of more than $100 million
over nearly 20 years.
Wasendorf said he had forged and intercepted financial
statements that were mailed between U.S. Bank, where some
Peregrine customer money was held, and the firm's auditors at
the National Futures Association.
Bodenstein said in an interview on Monday that his request
to serve subpoenas was "pretty standard," and JPMorgan said in
the filing that it did not object to the court granting him the
general authority to issue subpoenas upon the bank.
However, JPMorgan said the "conditions upon which the
trustee seeks to conduct the proposed examination are anything
JPMorgan also objected to Bodenstein's request that the
bankruptcy court prohibit subpoenaed financial institutions from
recouping any costs incurred with providing documents.
A federal judge in Chicago is set to consider Bodenstein's
request for subpoena authority on Tuesday.