JPMorgan gets another hefty fine for trade manipulation | Business| Economy and finance news from a German perspective | DW | 16.10.2013
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JPMorgan gets another hefty fine for trade manipulation

US regulators have slapped a hefty fine on banking giant JPMorgan Chase for its role in the "London whale" trade manipulation scandal. The lender admitted its traders had acted recklessly and caused huge damage.

A JPMorgan sign is seen outside the office tower housing the financial services firm's Los Angeles AFP PHOTO / Robyn Beck


The US Commodity Futures Trading Commission (CFTC) announced Wednesday it was fining JPMorgan Chase $100 million (74 million euros) for large-scale manipulation of trading.

It said the bank had agreed to pay the civil penalty to settle a 17-month probe into the 2012 case that caused the lender $6.2 billion in trading losses by dumping a huge number of swaps at the same time, thus distorting the market.

JPMorgan admitted its traders "recklessly disregarded the fundamental precept on which market participants rely that prices are established based on legitimate forces of supply and demand."

Ongoing probes

CFTC, which regulates trade in derivatives and futures contracts, pointed out it had for the first time used a new tool disclosing manipulative conduct.

The deal between CFTC and JPMorgan comes less than a month after the lender agreed to pay $920 million in a settlement with the Securities and Exchange Commission (SEC) and other US and British regulators.

Overall, probes into the scandal have not come to an end yet, as Manhattan prosecutors still carry out additional investigations and SEC officials look into individual traders' alleged misconduct.

hg/kms (AFP, AP, dpa)