" " " " " 11.27.12
" " " " " 02.25.13
Economy Minister Waldemar Pawlak has announced that the government will investigate financial services firm JP Morgan's activities in Poland, and will ask the US authorities for an explanation.
Concerns emerged in late November when the Polish Financial Supervision Authority (KNF) stated that it had reason to suspect that JP Morgan had been involved in manipulation of the blue-chip WIG20 index on November 12. That session ended in a 9.1 percent loss for the index. The KNF has contacted the Prosecutor's Office.
|Waldemar Pawlak, Deputy Prime Minister, Minister of Economy, Poland|
"The accusations presented by the KNF are serious. This looks like manipulation. It is good that the KNF has handled this issue so well," said Wiesław Rozlucki, a former president of the WSE toldRzeczpospolita.
This is not the first time JP Morgan has courted controversy in Poland. Earlier this autumn it issued a report which claimed that Poland's economy was in worse shape than Hungary's. "In the case of a crisis [the Polish economy] would be left almost with no reserves," the report stated.
In October, the firm also lowered its GDP growth predictions for Central and Eastern Europe, with Poland's 2009 growth estimated at 1.5 percent, half of what has been forecast by the National Bank of Poland and the EC.
JP Morgan's activities have aroused suspicion but Rozłucki did not think all these issues were connected. "I do not suspect any plot by JP Morgan. I reject suggestions that this could be a coordinated action," he said.
As WBJ went to press, JP Morgan was still working on an official statement on this matter and was thus unable to comment.
From Warsaw Business Journal