JPMorgan Chase & Co. has agreed to pay $100 million and admit that its traders acted recklessly, in order to settle one more set of charges in the U.S. over its so-called London Whale trade, the Commodity Futures Trading Commission (CFTC) announced Wednesday.
Last month, the bank paid $920 million to four other U.S. and British regulators to resolve civil probes of a $6.2 billion trading loss involving its chief investment office in London.
The new CFTC case charges the bank with violating a prohibition on manipulative conduct when it traded in the credit default swaps — a type of financial contract originally created to insure against a company defaulting on its bonds — at issue. By selling a huge volume of swaps in a concentrated period, the bank’s traders “recklessly disregarded” the precept that legitimate market forces should set prices, the CFTC said.
Photo: Spencer Platt/Getty Images