JP Morgan ‘pays another $100m’ over London Whale trading scandal

Wall Street bank to settle charges with Commodity Futures Trading Commission, according to reports

JP Morgan Chase has reached an agreement with the Commodity Futures Trading Commission (CTFC) to pay $100m to settle charges related to the bank’s “London Whale” trading scandal, according to media reports.

The US derivatives regulator is expected to leverage new powers granted to it by the Dodd-Frank Act and fine JP Morgan for the reckless use of so-called manipulative devices, the Wall Street Journal reported, citing people familiar with the matter.

JP Morgan disclosed last month that it had received a Wells notice from the CFTC and that the regulator intended to recommend enforcement action against the bank.

The CFTC settlement could come as soon as this week and would include the bank admitting some wrongdoing, the New York Times reported, citing people briefed on the negotiations.

The bank last month paid a total of $920m in penalties to four US and British regulators to resolve the biggest civil probes of the bank’s $6.2bn Whale derivative losses. © 2013 Guardian News and Media Limited or its affiliated companies. All rights reserved. | Use of this content is subject to our Terms & Conditions | More Feeds

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