by Christopher Freeburn | September 19, 2013 9:35 am
Unnamed sources tell the New York Times that U.S. and U.K. regulators and JPMorgan Chase (JPM) has negotiated a settlement covering multiple probes of last year’s massive trading losses at its London office.
Under the terms of the deal, the big bank will admit that it failed to exert the appropriate controls over the rogue trader who lost $6 billion in huge derivates bets. Such an acknowledgement of wrongdoing is very rare for a major financial institution. JPMorgan will also pay in excess of $900 million in fines.
The settlement will end investigations by the U.S. Securities and Exchange Commission (SEC), Federal Reserve and Office of The Comptroller of the Currency, as well as Britain’s Financial Conduct Authority.
While the bank will concede wrongdoing and pay hefty fines, no bank officials will receive blame for the losses under the deal with regulators.
JPMorgan could still face additional fines from a probe of the matter by the U.S. Commodity Futures Trading Commission, but is also negotiating with that body. Other federal law enforcement agencies will continue to investigate the matter.
Last month, a former supervisor at JPMorgan’s London office surrendered to police in Madrid. He and a French national are facing charges relating to the trading losses.
Earlier this year, a U.S. Senate subcommittee report criticized the bank’s management for initially concealing the true size of the trading losses from regulators.
Shares of JPMorgan rose almost 1% in Thursday pre-market trading.
Source URL: http://investorplace.com/2013/09/nytimes-jpmorgan-admits-wrongdoing-fined-900m/
Short URL: http://invstplc.com/1fvg8RA
Copyright ©2015 InvestorPlace Media, LLC. All rights reserved. 700 Indian Springs Drive, Lancaster, PA 17601.