JPMorgan’s reputation suffered another blow as it became apparent that one of its employees leaked non-public information that was used by a Japanese hedge fund accused of insider trading.

The US investment bank indicated in a statement that it has been in discussions with the Japanese regulator about the leaking of information on a new share issue by Nippon Sheet Glass before its announcement in August 2010.

Japan’s Securities and Exchange Surveillance Commission said yesterday it found evidence that Asuka Asset Management had traded on insider information about NSG’s new share issue, which it had obtained from one of the global coordinators.

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