JPMorgan to pay $100M to settle charges on ‘London Whale’ trades

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.

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Photo: Spencer Platt/Getty Images

JPMorgan to pay $100M to settle charges on ‘London Whale’ trades

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.

Read more

Photo: Spencer Platt/Getty Images

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