[ by Howard Haykin ] JPMorgan Chase & Co. was accused in a lawsuit, filed in Manhattan federal court, of manipulating clients’ foreign-exchange transactions for its own benefit. Forex trading has been a big revenue generator for the bank. The Louisiana Municipal Police Employees’ Retirement System filed the complaint on Thursday on behalf of itself - i.e., its members and participants - along with other institutional investors.  Accusing JPMorgan of taking advantage of investors by causing them to pay what were often the worst currency rates available on a given trading day, the Claimant stated:

"JPMorgan’s scheme allowed it, in violation of its contractual and fiduciary obligations, to extract hundreds of millions of dollars in illicit risk free profits from its clients under the guise of FX trading."

JPMorgan Large Forex Business. JPMorgan recorded more than $4 billion in foreign exchange revenue between 2005 and 2011 - the relevant period for the complaint.  The complainant seeks damages, punitive damages and disgorgement of profits. The case is Louisiana Municipal Police Employees’ Retirement System v. JPMorgan Chase & Co., 12-cv-6659, U.S. District Court, Southern District of New York (Manhattan). For further details, go to:  [Bloomberg, 8/31/12].