JP Morgan pays out another $100m fine over London Whale
JP Morgan yesterday dipped into the funds it has set aside to cover a tangle of legal and regulatory difficulties to settle charges that it "recklessly disregarded the fundamental precept on which market participants rely".
The admission came over the activities of its so called "London Whale" trader whose huge positions led to multi-billion dollar losses.
The bank will also pay a $100m (£63m) fine to the US Commodity Futures Trading Commission (CFTC). It has already shelled out $920m over the affair to regulators on both sides of the Atlantic.
JP was forced to admit its traders behaved "recklessly", although it will be hoping the formulation agreed with the CFTC will protect it from civil actions.
In charging the bank with "employing a manipulative device", the regulator made use of new powers granted it under the 2010 Dodd Frank overhaul of financial regulation in the US. However, Republican commissioner Scott O'Malia opposed the deal saying the CFTC should have "taken more time to investigate whether the company is liable for a more serious violation, namely price manipulation".
The bank last week said legal costs totalling $9.2bn threw it into a third-quarter loss.
The bank and its chief executive, Jamie Dimon, were once Wall Street's darlings but have become embroiled in lengthy list of regulatory woes.
* The City watchdog yesterday confirmed that it has launched a formal investigation into "a number of firms" over suspected manipulation of the lightly regulated foreign exchange market.
The Financial Conduct Authority (FCA) said it was working with several regulators. The Swiss have already confirmed they are also involved.
The FCA's move is significant because a formal investigation is the first step in disciplinary proceedings against regulated firms.
- 1 Michelle Watt's father says TV presenter killed herself because she was in constant pain
- 2 Nathan Collier: Montana man inspired by same-sex marriage ruling requests right to wed two wives
- 3 'Help me I'm trapped in a factory' messages keep being found on bottles of vitamin water
- 4 North Korean defector flees to Finland 'with evidence of chemical testing on humans'
- 5 Greek debt crisis: The photograph that conveys the despair of Greece's elderly
Nathan Collier: Montana man inspired by same-sex marriage ruling requests right to wed two wives
Greece crisis: IMF was pushed around by Angela Merkel and Nicholas Sarkozy – and now it is being humiliated
'I wish the BBC would stop calling it Islamic State' – David Cameron unleashes frustration at broadcaster
Forget little green men – aliens will look like humans, says Cambridge University evolution expert
Greece crisis: The wider lesson is that it’s time to abandon this failed experiment in currencies
Girl, 7, stares down hate preacher at Ohio festival with pro-LGBT rainbow flag gesture
iJobs Money & Business
£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...
£15000 - £16000 per annum: Recruitment Genius: Customer Service Advisors are r...
£20000 - £25000 per annum + OTE £45K: SThree: SThree were established in 1986....
£40000 - £60000 per annum: Recruitment Genius: A Compliance Manager is require...